Palm Beach (Fla.) real estate broker Michael O’Connell said he was surprised when he first learned that a decade-old study by a university was now claiming that some Palm Beach real estate transactions were being processed with a lower price tag than they should be.
“I was surprised that that was actually happening,” O’Connor, who now manages several properties in the area, told The Associated Press on Wednesday.
“We’re going to have to figure out how to change that.”
The university study, conducted in the spring of 2014, was conducted in partnership with the Palm Beach State University (PBSU) Real Estate Department.
The study, which was commissioned by the Palm Bay Community Trust, a nonprofit group, found that buyers paid $12,929 for a $1.9 million home in 2014, $18,000 for a 2,200-square-foot home in 2015 and $20,000 in 2016.
O’Donnell said he didn’t have enough data to determine the actual price of a property at the time the study was completed.
The study also found that sellers of properties valued between $25,000 and $300,000 paid $13,000 less than they would have if they had purchased them for $100,000.
“That’s one of the biggest concerns of any buyer when it comes to financing their home,” O-Connell said.
“I don’t know what they are getting that they’re paying so much for.”
O’Connell and his staff will have to decide what to do about the study.
In the interim, he said, he will continue to try to find homes for sale in Palm Beach and other nearby communities.
The state’s real estate commission has launched an investigation into the study and its findings, and O’Brien said the commission will review the university’s findings and the way it was conducted.
“We are still trying to determine exactly what went on with the study, and that’s the first step,” he said.
O’Brien added that he doesn’t believe the study is flawed.
“It’s not the most sophisticated study, but it’s a good first step.
We’re going in there and we’re going out there and looking for people that have some experience in this industry,” he told the AP.
“Hopefully, they’ll come forward and say, ‘Look, I didn’t do anything wrong, but we want to make sure this is correct.'”
He said he hopes the investigation will bring some answers.
“The biggest thing I’m going to do is go into the office and talk to people, talk to the students, and let them know that we need to be more diligent in our investigation,” he added.
In 2016, O’Dell said he had a deal to sell a house in the same area for $3.4 million and he sold it for $4.4 billion.
He said he doesn oft regret his decision to sell.
“You just have to make a decision,” he noted.
“You can’t go in and say I didn-I’m not going to sell because I had an offer.
I sold because I wanted to live in Palm Bay.
I had a great opportunity there.”