Your MLS must really suck, for you to consider free sites a viable alternative. Lights out, the MLS is better for searching, and statistics, and data. I am licensed and do work in 4 states, and multiple markets. I subscribe to 5 MLS services, There is not a single market I am involved in that the MLS does not do a far superior job to the free sites.
I know two markets where a some appraisers don't use the MLS. The Westchester MLS service in NY($3000 first year) is outrageously expensive, as is the Greenwich CT MLS, which costs $900/year for one town coverage, and I see some appraisals done by appraisers who do not use them. Maybe they can't afford them, or don't think they need them. I can tell you from reviewing experience, that they miss a lot of sales, trend information and importantly, information on the sales they find, by relying on free services. I have never reviewed a good appraisal done by someone relying on free data sites. If I ever went up against one in court, it would be very easy to have that report discredited.
/rather than drop the MLS I would go to them with your concerns. Realtors have an obligation to truthfully report their listings. There is not a single MLS I subscribe to that does not have some means of punishing realtors who post inaccurate data.
No.. I wouldn't say it sucks. I just recently started to question the need for the MLS. As I previously mentioned, I reviewed a clean report for the first time where a public source was noted and it made me curious.
It's interesting to hear that you are aware of markets where some appraisers don't use the MLS. This is what I was wondering.. I honestly didn't know appraisal work was being done without access to MLS and I've been at this for 18+ years. I understand what your saying about missing sales, trends and details from the free services and I thought the same, however, I've found that the free information is very accurate and in most cases exactly the same as the MLS (with regards to comparables). I also mentioned previously that since I started to question the need for the MLS, I have been doing my searches through the free sites first and then following up with my normal MLS search. In the past two weeks, I have found several comparables that I would have missed if I relied solely on the MLS. This is the exact opposite of what I expected and what you are saying. As for trends, I think you should revisit some of the free sites available and look at the amount of free data that is out there. I have found the trends indicated on the free sites to be very accurate. I only do work in the area I know like the back of my hand, a 40 miles radius from where I've lived all my life. I don't rely solely on trends that the MLS may indicate because in many cases it is misleading. I rely on my knowledge of the market, conversations with good agents and historical data. In my area, things move slow.. Up or down, there is very little data to support any trend in most cases.
I do NOT plan on dropping my MLS access, I did contact them and expressed my concerns and they are working with me.
Unfortunately, the trend here is for agents to publish fluff, not facts and apparently it's acceptable. Here's a good example for you... Yesterday I'm working on an REO assignment and searching for comparables that are in what should be noted as fair, poor, needs rehab, etc.. (c5-c6 in my mind). I found 2 sales that did not make any sense, the sale prices told me there must be a major issue but the agent comments made them sound as if they just needed carpet and paint. I called both agents to ask more questions, turns out one had a foundation wall falling in and was not habitable and the other had a severe mold problem. Not one mention of anything in the MLS... When I commented to the agents about the details missing in the MLS, they both replied with the typical, due to liability reasons they did not want to add negative aspects to the listing. Yes, I sent an e-mail to the MLS about both... This is what I find more often than anything else. If I don't call, I don't get the full truth.. If the agent says "totally renovated", it's probably c4. If the agents says "needs minor tlc", it's probably c6. We as appraisers are scrutinized heavily but many agents seem to have a total disregard for anything but the commission they're being paid. I am not bashing agents, I have family and friends that are sales agents and we have this conversation often. I'm just pointing out what is common place here in my area. In my opinion, until sales agents are paid a flat fee, there will always be an issue with accurate MLS data. I was in sales for 10 years prior to being an appraiser, when you're working for a commission and it's based on a percentage of the sale price, what starving salesperson wouldn't stretch the truth to maximize the deal? Just my opinion..
