Compass Exclusive Listings as a Comp Sale

[Phlyguy]

I haven’t had this scenario happen yet but it will eventually.
Compass has these new Coming Soon exclusive listings which they state are not public, and they are not in MLS. Eventually I am sure a Compass agent will inform me of one of these sales as being “a great comp”.
Thoughts? I’m not sure how I would come across this “non public” info unless it was from a Compass agent, and they surely won’t inform me of a closed Compass exclusive listing which doesn’t support the pending sale I am appraising.

 

[Terrel L. Shields]

Compass has these new Coming Soon exclusive listings

Probably means they've not really listed it yet and are still negotiating with the owner. And the owner might need to clean up the place, evict renters, and/or it's contingent upon another sale closing.

 

[The Bob]

The Exclusive listing is one part of a 3 part marketing plan. It doesn't say so specifically if it's entered in MLS IF it sells during this first phase.

Three-Phased Marketing Disclosure Updated May 27 [Public]

DISCLOSURE REGARDING THE COMPASS THREE-PHASED MARKETING STRATEGY Compass offers a unique Three-Phased Marketing Strategy, which gives you multiple opportunities to make a first impression prior to your property being offered on the Multiple Listing Service (“MLS”), if you so choose. Depending o...

docs.google.com

 

[Tom D]

They are keeping them in house to have their own agents sell them. That is not permitted by most MLS organizations. Hey, maybe the start of a realtors civil war.

 

[Phlyguy]

Probably means they've not really listed it yet and are still negotiating with the owner. And the owner might need to clean up the place, evict renters, and/or it's contingent upon another sale closing.

No this is a big new marketing technique Compass is rolling out. I think it will be up to the seller if they want to participate but presumably the Compass agents will be pushing “this great new strategy” for all listings.
It’s getting some media attention near me because Zillow refuses to include these listings.
Even if the property is put into MLS after it is under contract (and Compass agents are getting both sides of the commission) did this sale get the property marketing to be included as a comparable sale?

 

[JTip]

'Coming Soon' has a definition at the MLS level.

A participant of the MLS can list a property on the MLS as 'Coming Soon' but cannot advertise it outside the MLS. No Facebook, website, signs in the yard, NOTHING.

Zillow, et al, will not publish Coming Soon properties because they are not pushed in the IDX feed to participant websites, for reasons previously discussed.

You will never see a Coming Soon property on the MLS on any website on the interweb.

 

[Tom D]

They are holding it in house to sell it in house. Makes sense if there aren't a lot of listings in the area. And i'm sure compass isn't 1 small office. R.e. offices are hurting due to the lack of sales from the previous high. But as long as it does get listed, you will see days on market, '1'. Dead give away. So i don't care how they eat each other. I have enough issues with AMC zombie appraisers.

 

[sputnam]

Part of the definition of market value is that the property was exposed to the market for a reasonable time. Listings that aren't exposed to the market, don't become comparable sales. However, if you simply ignore them, you will sooner or later, get a request from your Client... either to explain why you didn't use them.. or you may get a RoV.

On the other hand... if there is enough of that going on in your area... the 'elite' listings may become a separate market.

 

[Phlyguy]

They are holding it in house to sell it in house. Makes sense if there aren't a lot of listings in the area. And i'm sure compass isn't 1 small office. R.e. offices are hurting due to the lack of sales from the previous high. But as long as it does get listed, you will see days on market, '1'. Dead give away. So i don't care how they eat each other. I have enough issues with AMC zombie appraisers.

Agree but my question is will this sale that is listed exclusively on the Compass website (not in MLS) and is viewable only to certain agents (I think) be a viable comparable in an appraisal?

 

[Phlyguy]

Part of the definition of market value is that the property was exposed to the market for a reasonable time. Listings that aren't exposed to the market, don't become comparable sales.

This is what I’m thinking too but it is arguable whether it is exposed to the market- or at least this is the argument the Compass agent will certainly make when they hand you the comp that supports the sale price of the property you are appraising.