MLS Disclosure of Sales Concessions

[Proactive]

Anyone else who's MLS reports sales concessions on closed sales? So far I have:

North Texas Real Estate Information Systems, Inc., Dallas, TX
Pikes Peak Multiple Listing Service, Colorado Springs, CO
Middle Tennessee Multiple Listing Service, Brentwood TN
Bay Area Real Estate Information Services, Inc., Santa Rosa, CA
Multiple Listing Service of Greater Las Vegas, Las Vegas, NV

Please let me know if I’ve missed yours, I’d like to provide the largest list possible to my MLS.

Thanks again for your help!

 

[Tater Salad]

MARIS (Mid America Regional Information Systems) St. Louis, MO Metro area has separate reporting areas for closing costs and repairs. I'm not aware of any direct efforts to encourage that they be reported correctly, but I'll check into it. Like others, you sometimes see the list price increase at the same time that a sale goes pending with no disclosure of concessions, but you know that something happened.

 

[Oregon Doug]

Interesting topic. The ACBL (Oregon board) discussed this very point with he director (Scott Taylor) of the Realtor Licensing Department about two years ago. Their decision then was to not disclose any concessions. They changed their mind at one time, but now they decline to disclose concessions - even on closed sales.

This is the first topic (scheduled @ 9:25 am) listed for discussion on the agenda at the next board meetingon Monday, April 23.

The board meets at 9:00 am in room 124A, Park & Recreation building, 725 Summer Street NE in Salem, OR.

There's plenty of room.......so, am I going to see any appraisers there?
(I doubt it, from what I've seen in the past.)

Oregon Doug

 

[John Hassler]

Steve H., I've sent you an email. Let me know if I can help in any way. I must say that our MLS president, a paid full-time position and non-agent, has been very supportive of appraiser concerns. I can only suggest to you that you keep pushing and make your MLS hear you!

Denis D, I'm glad you are finding the BAREIS "Yes/No" concession reporting requirement, which is a mandatory input field, useful! At this weeks meeting, we had a request to make the "Seller Comments" field mandatory if the agent checked "Yes" to seller concessions. I thought it was a great suggestion and pushed to have it sent to the board for approval. It's not a perfect solution but until I can find a recognized definition of a seller concession this is what we'll live with. I've asked here before without success but if anybody has a good definition please let me know.


To all, if you want to make a difference with your MLS then make yourself heard and/or join on a committee. For me, it's only been 6-12 meeting per year which last 2-3 hours. I've found that most agents have no idea what appraisers' needs are and most are only too happy to listen to our concerns and make changes. You can make your MLS better!

 

[Tudor]

Why MLS?

Should'nt the concessions be required on more then one data source? I think they should be on the Affidavit, that is where the sales price, sales date, type of financing and other important information regarding the transaction is listed. Sales concessions should be recorded with all of the other sales information.

I don't think it is a good idea to depend on MLS to verify consessions,
I know I don't use the sales price indicated in MLS, I will verify this from the county records and/or the affidavit.

 

[Proactive]

Should'nt the concessions be required on more then one data source? I think they should be on the Affidavit, that is where the sales price, sales date, type of financing and other important information regarding the transaction is listed. Sales concessions should be recorded with all of the other sales information.

I don't think it is a good idea to depend on MLS to verify consessions,
I know I don't use the sales price indicated in MLS, I will verify this from the county records and/or the affidavit.

Idaho is a non-disclosure state, the details of sales transactions are not public record. Only the transfer date is available. I also work in Washington, which IS a disclosure state. Only the final sales price and date of sale is available, concessions are not reported.

“Sales or financing concessions may have an effect on the price paid for a property. As such, it is important for the appraiser to recognize this and analyze their impact.” (The Appraisal Standards Board, USPAP Q&A, March 2007)

If concessions are public record in your state, consider yourself lucky. You've got it easy.

 

[Ross (CO)]

Steve H,.......Good reference to the ASB's March statement about concessions, but I feel they failed us all with the mis-use of some wording in the text. They should also have said......."Sales and financing concessions can have a definite and noted presence within the price posted-and-recorded for a property in the appraiser's local database sources and might result in a representation of price-paid as being different from, and possibly higher than, the actual price paid for the real property after certain disclosures have been recognized and acknowledged". - - The ASB should then go on to define "typical", define "impact"....as they see it, and also offer a new Advisory Opinion for one to reconcile this great dollar-for-dollar versus "market reaction" debate that keeps the concession issue so heavily bogged-down in so many persons' minds !

That.....would be better guidance for those still not aware of the magnitude of this issue across the country.

 

[Mike Garrett RAA]

Pikes Peak Association of REALTORS® is one of the largest boards in the country.

 

[conwayblue]

CARMLS - Central Arkansas Realtors Multiple Listing Service - Little Rock, AR.

Local MLS in Little Rock, AR just removed the concessions field from all listings. The site stated the info was being removed because Realtors were not having their clients sign a release of confidential information. Most Realtors I call now are plain rude when requesting concession information. There's tons of sales in the system that show things like 2 price decreases and 200+ days on market then magically closes over list price. Hell, if the concessions info is private the sales price might as well be. I love when everyone thinks that adding $4,000 to a $40,000 sales price to cover closing doesn't matter despite the fact that it's a 10% increase in price.. Then all new listings are based upon the artificially high prices.

 

[Mike Garrett RAA]

Sounds like it's time for an appraiser strike!