Pocket Listings

[DJBanas]

So how do "pocket" or "exclusive" listings count in the Appraisal process?

DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open
market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming
the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and
the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both
parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a
reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms
of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold
unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale.

Wouldn't they be excluded from any counts for the 1004MC or the top of page 2 on the URAR? The highlighted and underlined word above would seem to be saying: "If its' not be marketed openly to the public it's does NOT meet the definition of Market Value."

 

[DJBanas]

So how do "pocket" or "exclusive" listings count in the Appraisal process?

DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open
market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming
the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and
the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both
parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a
reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms
of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold
unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale.

Wouldn't they be excluded from any counts for the 1004MC or the top of page 2 on the URAR? The highlighted and underlined word above would seem to be saying: "If its' not be marketed openly to the public it's does NOT meet the definition of Market Value."

 

[djd09]

I see plenty of "for comp purposes only". Do realtors add them to the MLS after the sale?

 

[TRESinc]

I see plenty of "for comp purposes only". Do realtors add them to the MLS after the sale?

here's a novel concept... ask the party who put them in the MLS...

 

[djd09]

Wouldn't they be excluded from any counts for the 1004MC or the top of page 2 on the URAR?

Doesn't the withholding of listings make the whole 1004mc meaningless and misleading?

 

[DJBanas]

Doesn't the withholding of listings make the whole 1004mc meaningless and misleading?

Well, one of many reasons.

But, if we are just looking at comps that meet the definition of market value then I would say "No". They may actually distort the DOM numbers as there is no way to tell if the time from signing the exclusive listing contract to agreement of sale signing is entered in the MLS by the Realtor after the fact. This could also affect the counts on the end dates as well as List/Sale %.

I think it is a lose/lose situation for Appraisers.

 

[TRESinc]

Well, one of many reasons.

But, if we are just looking at comps that meet the definition of market value then I would say "No". They may actually distort the DOM numbers as there is no way to tell if the time from signing the exclusive listing contract to agreement of sale signing is entered in the MLS by the Realtor after the fact. This could also affect the counts on the end dates as well as List/Sale %.

I think it is a lose/lose situation for Appraisers.

more often than not appriasers are not completing the 1004MC as they should to begin with. i can't tell you how many reports i have seen where the appraiser specifically states that the data on the 1004MC is from _____ MLS when the form asks for ALL sales in the neighborhood, not just those that were listed/sold on an MLS system.

 

[timd354]

So how do "pocket" or "exclusive" listings count in the Appraisal process?

DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open
market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming
the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and
the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both
parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a
reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms
of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold
unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale.

Wouldn't they be excluded from any counts for the 1004MC or the top of page 2 on the URAR? The highlighted and underlined word above would seem to be saying: "If its' not be marketed openly to the public it's does NOT meet the definition of Market Value."

As you can probably tell from my earlier posts in this thread, I am no fan of pocket listings, however listing a property for sale in the MLS is not the only method to expose the property for sale in the open market, especially with the advent of the internet.

 

[djd09]

I think it is a lose/lose situation for Appraisers.

Typical.

 

[djd09]

Over 75% of the 1004mc would be misleading without knowledge of the Pocket Listings.