BEST ANSWER
FIRST ANSWER
Twist -
Did you check with your realtor to see if they can find out why they are asking this? If you don't have an agent, you'll need to contact the lender that asked what you paid? I'm guessing it has something to do with many of the changes in lending and some of the "anti-flipping" rules.
Incidentally, you may want to check with you CPA, I believe whatever you make over and above what you paid for the house plus your documented expenses for improvements and your selling costs is considered profit - whether you put it in your pocket or send it to the IRS.
Wed Sep 16 2009, 16:22