How to verify Cash sales.
I'Ve noticed cash sales can't be verified but are used as comparable sales. Case in point: Governor's Point on the NC coast promoted their lots where the Realtors/Investors allegedly paid cash and flipped the lots numerous times between themselves and bumped the 'comps' from $100k to over $1M each. Of course all 'cash sales' on paper but $0 really paid. The county got on board and raised the tax assessed values accordingly.
Then came 2008...
Values plumeted...law suits galore....jail time for fraudulent appraisers and lenders...even the NC Governor was on board (namesake) and now a convicted felon....
I still see it today. Fake cash sales between friends or family members to bump up comps. So how does one really know if cash was actually paid?
Just trying to get an accurate ARV.