Comp use only

[uncle sam]

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

 

[Fernando]

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

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

 

[Dublin ohio]

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

I see quite a few new builds like that, some fsbos and some "pocket" listings. Usually entered by the buyers agent. Pocket listing are sometimes entered by the listing agent. My opinion. It depends. On new construction. I will sometimes use them but disclose they are builder sales listed for sale purposes only. Not really any different than using non listed builder sales. Buyer's agent will usually give me info I need or out me in contact with builder. Fsbos are Ok by me. As long as I can confirm data. Many time Fsbos are listed online and you can get data from there and agent. Pocket listing are another thing. Most of the time only one agent involved. Or two agents from same office. Tough call to make on those.

 

[KHS445]

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.

 

[J Grant]

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

Do they show as closed on public records?

If so, I don't see a problem using them - though you can also call your local MLS board and ask them what comp use only means -if they are listings then identify them as listings.

 

[CGinMN]

Watch out for new constructions that violate Cert 8.

I have not used comparable sales that were the result of combining a land sale with the contract purchase price of a home that has been built or will be built on the land.

 

[sputnam]

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").

 

[TerryRohrer]

I wouldn't say "never" use them, but I don't. If there is another sale, regardless of its comparability to my subject, I would prefer to use it instead. I agree with Sputnam's comment above, and no amount of verification or explanation or wordsmithing gets you around that aspect. If I were ever tempted, I would verify everything about it that I could, every way I could. I have reviewed appraisals where appraisers used these "comps" as sales, only to find where the "buyer" purchased a lot and had a custom home built on it, with the resulting total shown as the sale price. I have seen others where the builder and buyer were joint borrowers on the construction contract, with the total listed as the sale price.

 

[CGinMN]

Usually sales involving realtors have some level of market exposure, which may include sales that say “say 0 DOM” or “for comp purposes only.” If you’re immediately dismissing these sales without additional verification, you’ll eventually violate Cert 7. Don’t do that. These sales require additional scrutiny for sure, as do as actives, pendings, canceled, and expired listings, but sometimes they represent the best available data.

 

[Terrel L. Shields]

are they safe to use?

Why not? Your MLS doesn't allow fraudulent listings do they? Our MLS calls them "non-MLS" listings. Appraisers can also put them in the MLS