The Truth About Non-Disclosure States and How Privy Provides Reliable Data

Given their prevalence, non-disclosure states can significantly impact many real estate investors and how they conduct their business. Many investors can learn about differences in property sale disclosure by accident. It’s complicated for everyone involved— from buyers to sellers and real estate agents. If you’re an investor, you’ll want to take extra steps and do your due diligence when searching for properties in non-disclosure states.

It’s a common myth that non-disclosure states are troublesome for investors. While extra legwork can be involved,there are still many  profitable deals to be foundand a lot real estate investment potential in non-disclosure states. Property sale prices are private in non-disclosure states, making it a little harder to identify market trends— especially if you’re looking outside your state. 

Privy has the tools and reliable data to navigate non-disclosure states effectively. The right strategy and data can help you to purchase investments at competitive prices while still ensuring you have all the property information you need to be confident in your decision. 

We’re sharing everything real estate investors need to know about non-disclosure states and what strategies to use if you’re looking at investment opportunities in these states.

What is a Non-Disclosure State?

Non-disclosure states do not require the sale price of real estate transactions to be publicly disclosed, but real estate agents and sellers in these states are still legally required to disclose certain details relating to a property to potential buyers, such as the presence of mold, the property’s overall condition, and any previous repairs or renovations. While this information is shared with homebuyers during a transaction, it is not required to be submitted to or recorded in a public database.

While most states require full disclosure of property sales and sale prices to be made public, non-disclosure states do not. In some states, property and sales information is reported to a local tax accessors’ office but is not made publicly available. This is known as a limited disclosure.

There are currently eleven non-disclosure states in the United States: Alaska, Idaho, Kansas, Louisiana, Montana, Mississippi, New Mexico, North Dakota, Texas, Utah, and Wyoming. Missouri is a partial non-disclosure state. It’s worth noting that in some non-disclosure states, certain countries may have different rules.  

The challenge with purchasing an investment property in non-disclosure states is that key data, like sale prices, is often unavailable in public records.. This lack of transparency can make it difficult for investors and buyers to conduct market research, determine a property’s potential value, or access viable comparables. 

However, it is possible to make lucrative investments in non-disclosure states. Technology, such as Multiple Listing Service (MLS) data, plays a crucial role in bridging the information gap. . .Privy. navigates non-disclosure states with reliable data using direct-to-MLS data with 98% coverage of all U.S. residential properties. 

The Truth About How Non-Disclosure States Work

To reiterate, every property’s sale price should be part of the public record in disclosure states. Stakeholders throughout the industry, including real estate agents and brokers, use this information to inform their sales approach. 

By comparison, in non-disclosure states, this information is not a part of public record, and county office employees are prohibited from disclosing this information. This information can be shared and discussed by other stakeholders, such as real estate agents, buyers, and sellers. Although the sale price is not publicly available, it often ends up in the MLS, which provides real estate agents a way to access and share this information. MLS data offers a workaround for real estate agents, allowing them to evaluate comparable sales and assist buyers and sellers in making informed decisions despite the lack of public disclosure.

Is it worth investing in non-disclosure states? It’s a common myth that these markets offer little profit potential. In  reality, the truth is more nuanced. The limited public informtation in non-disclosure states means less competition, creating more opportunities for savvy investors. However, it’s not always easy accessing the data you need to understand the local market or make informed investment decisions.

That’s where Privy can help. You can connect with local real estate agents to gain valuable insights into the market in a non-disclosure state or tap into direct-to-MLS listings to get a clearer picture of property values and trends, even in non-disclosure states. Get the tools you need to make smart investment choices.

Navigating Non-Disclosure States with MLS

The MLS is the best way to view sales prices in non-disclosure states. However, the information may not be available on the MLS if the transaction was a private sale or made by a real estate agent outside the MLS. Sales prices can be categorized as confidential in these states, even within the MLS. 

The role of real estate agents becomes even more important in non-disclosure states. These agents have connections throughout their local market with access to databases and information that can help bridge the gap. Privy connects you with investor-focused real estate agents with Privy Preferred Agent profiles to help you find the right match. 

How do sales prices from non-disclosure states end up on the MLS? This happens because most real estate agents in those areas actively use the MLS to list and share property details. While sales prices aren’t publicly available, agents input this information into the MLS as part of the listing process. With enough data on the MLS, agents and investors can analyze comparables, identify market trends, and determine a fair price and property value. 

What Real Estate Investors Should Do in Non-Disclosure States

The right data and connections can help you navigate a non-disclosure state and identify profitable investment deals. Common misconceptions lead many potential investors to avoid these states, weeding out competition. Privy is your lifeline in non-disclosure states, giving you the data you need to gain a competitive advantage. 

A step-by-step guide to help investors easily uncover opportunities in non-disclosure states.

1. Run a Comparative Market Analysis 

Privy’s LiveCMAs are effective without access to public sale prices. You can run a CMA by analyzing at comparable properties in the surrounding area. 

These comparable listings help estimate property values and provide valuable context for potential investments. The key is to select properties with similar characteristics using MLS data from real estate agents or Privy.    

2. Network with Local Stakeholders

It’s not just data that helps investors to navigate non-disclosure states. Other stakeholders, such as brokers, real estate agents, and fellow investors, can provide crucial insight to help better understand the local market. Building a strong network within non-disclosure states gives you access to important connections and knowledge to understand economic trends and implications.

Privy makes it easy to network with local insiders, including leading real estate agents. Local stakeholders can help you access public records, including property deeds and tax assessments. This information provides a baseline for understanding market trends and property valuation. However, they won’t always accurately reflect the current market value, so it’s important to look at them contextually. 

3. Leveraging Big Data and Advanced Analytics

The key to investing in non-disclosure states is to use the potential of advanced analytics and big data. This data isn’t usually publicly available – and that’s where Privy comes in. Using Privy’s comping algorithm and proprietary data, you can gain valuable insights into property values and market trends in non-disclosure states. 

You can use other alternative data sources to understand the bigger picture. Demographic changes, employment rates, and construction permits show the potential for the local area, including growth rates. This type of data helps advanced analytics determine the future potential of an area. 

Experienced investors can use non-disclosure states to find under-valued properties to develop as underserved areas become more attractive to buyers and renters alike. Growth in construction permits and infrastructure development projects would suggest a strong growth potential for a specific area, making it ideal for property investors. 

Reviewing zoning regulations can reveal potential infrastructure development, which may lead to increased property values. Planning Boards play a crucial role by approving new developments and zoning changes, influencing how areas grow, and impact property valuations.

4. Get to Know the Local Market

Understanding the local market is essential for investors in any area, especially in non-disclosure states. Gaining valuable insights into the market can help determine if a non-disclosure state aligns with your investment strategy and risk tolerance. Attending local auctions and exploring online estate sales can reveal property value trends. 

Investors who apply traditional real estate strategies and data insights can develop a better understanding of non-disclosure states. Privy can take your research one step further and make it possible to identify lucrative opportunities more efficiently.

5. Invest in a Professional Appraisal and Home Inspection 

If you’re a first-time investor, you might want the extra peace of mind of a professional appraisal and home inspection. Licensed appraisers, familiar with the local area, can provide valuable insight into the property’s age, size, and condition, helping real estate investors understand its fair market value. 

A home inspection is another way to compensate for the lack of public information in non-disclosure states. Investing in a home inspection, regardless of what state you are in, can be vital. In non-disclosure states, it can identify potential issues the seller may not have disclosed. 

By evaluating the property’s structural integrity, a licensed home inspector can identify potential issues that the seller might not disclose, making it easier to negotiate repairs or price adjustments.

How Privy Provides Reliable Data, Even in Non-Disclosure States

Privy removes the mystery of non-disclosure states by providing direct-to-MLS data, making it easier to navigate markets where sales prices are not publicly disclosed. Our deal-finding algorithm automatically identifies the best on-market investment deals, , allowing you to focus on high-potential opportunities without the need for skip tracing tools.  With frequently updated data, Privy ensures accurate results using many of the cleaner source feeds than many of the popular tools. 

Privy gives you all the tools you need to connect with potential buyers and network with local real estate agents to explore investment opportunities in non-disclosure states. Data fills in the gaps, making it easy to effectively compare properties and understand their market value. 

Technology is your best asset in non-disclosure states.. Privy’s big data and analytics offer a comprehensive view of these markets, helping you identify growth areas. . Investors can use the data from Privy to conduct predictive analysis and identify cash flow potential. 

Are Non-Disclosure States Bad for Real Estate Investors?

It’s a myth that non-disclosure states are not ideal for real estate investing. In fact, these opaque states can represent low-competition opportunities with potentially undervalued properties.  While the lack of transparency in non-disclosure states may concern some investors, those with strong strategies and access to data can successfully navigate these markets.

Investors have been successful in non-disclosure states long before proptech tools, like Privy, made direct-to-MLS data more accessible.  Though investing in these states requires extra due diligence, the effort can result in lucrative opportunities. By understanding how non-disclosure states function, how to effectively navigate them,  and how to use alternative ways to gather information,  investors can gain a competitive edge. Areas showing growth trends,  especially infrastructure development, are ideal markets for investors at every stage of their investor journey.