Entered for comp purposes only.

[VolcanoLvr]

I'm befuddled. (Some will say that's normal!)

But if this is a 'family sale' trust to trust, why was there an MLS listing showing -0- days on market?

 

[Laughing Heir]

I'm befuddled. (Some will say that's normal!)

But if this is a 'family sale' trust to trust, why was there an MLS listing showing -0- days on market?

I'm just guessing. But around here the Realtors (myself included) will kick, bite, scratch, and hack to get credit for any sales they were a party to.

A real-life example: my friend just represented a buyer that bought an estate sale; it was for about a half million dollars and that put her over the 10 million mark for the year. She entered it into the MLS with 0 DOM; listing date, pending date, and sale date all occurred on the same day.

That's what the local Board advises the Realtors to enter into the DOM field in the database.

Stick that in an AVM and smoke it. Just another reason why boots on the ground is the best approach for solving valuation problems.

 

[Mike Garrett RAA]

Is this sale pertinent to property values in the neighborhood? If so, discussion of the sale would be appropriate within the appraisal report even though the appraiser does not use it as a comparable.

I might grid, say, 6 sales and in my comments also list another two or three with the comment that I considered them but decided they were less comparable or did not meet the criteria as stated in the Definition of Market Value for inclusion as a comparable. In that way I have demonstrated my analysis of the market.

 

[CANative]

Good post.

Thanks all for the discussion.

 

[David Beasley]

Realtors around here use that phrase (Comp Purposes) when they stick these types of sales in. I think what they really want is it to credit towards their performance sheets in the MLS, i.e. Million Dollar Club (yeah, that's still a lot of houses around here).

That may very well be it, because I don't really see any other reason. Most times that I see "Entered for Comp Purposes Only", it's a presale or something off-the-wall like the OP's situation. I've been lucky enough to never ever "need" one.

Maybe another reason they could be entering them is for "their" (RE agents) use, in their CMAs. I did "almost" use one once, had been a FSBO and the agent took buyers to it. Had been advertised in the paper, militarybyowner.com and had a yard sign out front, marketed for about 45 days...sold at arm's length with VA-backed financing...but I already had 5 good comps and gave it a pass. In today's electronic world, I don't like using comps that I can't pull up in the MLS and look at at least 12 different photos of...lol

 

[Mike Boyd]

The sales was recorded as being in the same named family trust. There was no market exposure (0 days on market). The agent comments in MLS state "not an arms length sale."

Even if it is an arms length transaction between family members there's enough stuff for someone to hang me if I gridded it.

No hanging if the sales price is the market value. Maybe there is an appraisal that shows that possibility. Use it and explain.

 

[DMZwerg]

When I was just starting out in appraising and learning how to use MLS I'd stumble on the "perfect" comp only to be crestfallen that it was an active listing.

And why would the fact that it was an active listing be a problem?

By the rule of substitution a "perfect active listing" is exactly the best competing property and can help home in on a value, generally from the high side (limiter).

Heck, if less than a few sales exist but there are a number of active listings what would be wrong with using SP/LP ratios, applying them to active listings (particularly those with longer marketing times) and using more actives to support the range? I mean active listings are the currently on the market (aka, ARE the real market), whereas sold properties are the historic (past) market.