Public Record Versus MLS

[Ariba]

These underwriter with their STIPs are absurd.

The underwriter reviewed the appraisal and questioned the living area of the comparable sales. They are all different than what is posted on Public Records. The Comparable sales must use Public Records as their living area.

Comp #1 will be 821sf, Comp #2 will be 736sf, Comp #3 will be 837sf, Comp #4 will be 678sf and Comp #5 will be 835sf

Please correct. Thank you for your help with this!

In your opinion historically who is more accurate Public Records or the MLS? How would you respond?

Also, I did not know that appraisers MUST use Public Records as their living Area. I am sure someone in this forum can direct me to this requirement and appropriate documentation.

 

[glenn walker]

In most of my area public records are fairly good *** I always read the MLS comments to see if the agent says there was a room addition or something else that would be the reason for the difference . If the property had a room addition then I would probably use the MLS data. In your case I wonder where these agents came up with their GLA numbers because it's rare for agents to physically measure a house. As far as only using public record data in appraisals that's simply not true because many times we measure a house and it's not what public records indicated but your situation is kind of weird because like I said these are very small properties so where did the agents come up with what they reported in MLS. Personally I would not want to die on this hill so I would check public records on each one and unless the agents have some comments about additions etc I would use the public record GLA and be done.

*** UW or review may have run collateral underwriter and the other appraisers reported public record GLA in their reports which then got placed into the big Wizard of Oz Fannie Mae machine and now it's choking when the UW ran yours and it did not match up Lol

 

[CindyR]

My argument on this issue is that the property is marketed and sold based on the MLS square footage. The buyer believed they were buying what MLS said and looked at other properties with similar MLS square footage and made their offer and agreed on a price based on the MLS square footage. For the SALES comparison approach I like to consider the data that was the basis of the SALE. If the property was really larger or smaller the buyer probably did not know that when they made their purchase decision.

 

[Meandering]

Same argument.
Tax records are XX years old, and it is unknown if the Assessor was inside the building.

MLS is the most recent record and is what buyers and sellers are basing their decision making from. You are emulating typical buyers and sellers and working from the same data most commonly known to typical buyers and sellers.

.

 

[Terrel L. Shields]

Both can be right, both can be wrong. If different from the MLS, I state there is a difference and which one I believed. I might even check google earth if I think the error is big enough. The difference in 1602 and 1620 may be only a transposition of the MLS since most of ours use the Courthouse as the SF reference.

 

[NachoPerito]

Depends on where you are. It is wrong the reviewer to assume that public records should be used blindly though.

 

[CindyR]

Depends on where you are. It is wrong the reviewer to assume that public records should be used blindly though.

Exactly - that's why we analyze the quality of the data as part of our process.

 

[normando]

Depending on locale, MLS using 3rd party info could be more accurate than older dated public records. In my city, public records include garage in total gross area. Not many agents or outside appraisers are aware of this flaw. So if I was to list the property, I would not comment on gross area and let buyer do own research.

 

[Randolph Kinney]

My argument on this issue is that the property is marketed and sold based on the MLS square footage. The buyer believed they were buying what MLS said and looked at other properties with similar MLS square footage and made their offer and agreed on a price based on the MLS square footage. For the SALES comparison approach I like to consider the data that was the basis of the SALE. If the property was really larger or smaller the buyer probably did not know that when they made their purchase decision.

The crux of market value is how the property was represented to the buying public, marketed and sold. Realtors know when the public record does not reflect the GLA as reported by them. Sometime the public record is wrong. Sometimes additions were made but were not recorded. Whatever.

 

[normando]

Most Realtors initially do not know the gross area and rely on public records. Only after appraisal report is completed, then the true gross area is reported and offer is renegotiated.