Comp use only

[The Bob]

Most builder's around here haven't been building many spec houses. Sometimes you'll see a builder listing in the MLS with something like zzz DOM. I call these placement listings or ghost listings. They are just a marketing tool. That builder could sell a dozen or so houses off that listing. The actual exposure is through the builder's sales office. A buyer can come in, look at all the different floor plans and pick out a lot. They can do that with any number of different builders/projects. It's a legit sale. Not all market exposure has to be through the MLS.

 

[ZZGAMAZZ]

Are you saying you're using sales that are listed as comps only?

They are marketed on MLS as "for comp use only," with doc# numbers as well.

I dunno what you mean by 'safe to use'. You know that little part of the definition of market value that says something like... 'sufficient exposure in the market'? For 'comp purposes only' sales often haven't been exposed to the market. They aren't suitable for use as comparables when your assignment is to find market value. They can provide a source of data for the Cost Approach (if they're new construction").

What about the market scenario when properties that are fully-exposed to the market inevitably go under contract in less than 2 - 4 days? Exposure doesn't seem as important in the current market; I have commented (hoping for an underwriter with a sense of humor) that the subject could have been listed at virtually any price. . . and it would have gone under contract at 3% - 7% above the list price, which is somewhat accurate.

 

[Lee Lansford]

Recently I have started some high-end comps that are entered in MLS as for comp use only, are they safe to use?

Tell us more.

 

[shrubberyvaluation]

Maybe they have STDs. Just like anything else, verify the sale, identify the property characteristics and conditions of the sale to see if its a good indicator of market value.

 

[Fernando]

Are you saying you're using sales that are listed as comps only?

Hey OP, I asked you a question. Can't give you the almighty Fernando response without your clarification.

 

[bnmappraisal]

A sale, is a sale, is a sale. What you have is a start and now it is up to you to verify the details and to determine if the sale is a true representation of the market.

Agree with KHS
It's a sale that you just have to do a little more due diligence in verifying the details and figuring out if it truly is a COMP to your subject
I use them often, but they do take a little more time to verify all the info to determine if they are a good comp or just a sale

 

[Fernando]

Agree with KHS
It's a sale that you just have to do a little more due diligence in verifying the details and figuring out if it truly is a COMP to your subject
I use them often, but they do take a little more time to verify all the info to determine if they are a good comp or just a sale

From Fernando's experience, these comps were not exposed to the normal MLS market and usually sell below market.
Listing agent does a disservice to owner by not letting the market frenzy bid up the price.
Thus I usually use it as a 4th comp only if it's similar to subject or close proximity.

 

[KHS445]

From Fernando's experience, these comps were not exposed to the normal MLS market and usually sell below market.
Listing agent does a disservice to owner by not letting the market frenzy bid up the price.
Thus I usually use it as a 4th comp only if it's similar to subject or close proximity.

Is the MLS market exposure all that you will consider? What about FSBO’s, Zillow, etc type non-MLS listings? FSBO’s, Zillow, Facebook Market Place also provide market exposure.

 

[Fernando]

Is the MLS market exposure all that you will consider? What about FSBO’s, Zillow, etc type non-MLS listings? FSBO’s, Zillow, Facebook Market Place also provide market exposure.

You got to be kidding.

 

[KHS445]

You got to be kidding.

Not!

Zillow probably hits more buyers directly in the first 24 to 48 hours than any MLS. The MLS is directed towards it’s members initially, who then share it with their clients. Plus many buyers believe they can get a better deal when there is no commission and many sellers believe they will receive more net proceeds without having to pay a commission.