Re-listing properties, misleading DOM and list prices

[Michael Chu]

Well, the RE agent's job is to get the property sold. If it takes relisting every two weeks to get it done, so-be-it. I do not see it as an ethics issue and it seems like a lot of trouble just to skew the days on market. The listing data is designed for real estate sales people, not real estate appraisers. If you need an accurate DOM then you have to research it more diligently.\\

In my history of selling real estate I have found that many agents only look at new listings. The older ones are easily forgotten. So, to relist it brings it forward to be looked at again by the agents. I hardly think the intent is to deceive appraisers. I agree with John M., however, the only relevant DOM figure is how long it had been listed at the price it was when it sold.

I agree with your post, completely. A question:
A reviewer points out a prior listing of one of the comps utilized by the appraiser and dings you for missing this prior listing (substantially lower)

What is the purpose in doing that? The comps in question could easily be substituted with another comp that has no prior. They both know it.
Is the review biased? or did the reviewer do his/her job?

Are we required to research all prior listings of the comparables?

 

[Annemieke Roell]

I always run a MLS history in order to find the real exposure time .....

 

[Smokey Bear]

I agree with your post, completely. A question:
A reviewer points out a prior listing of one of the comps utilized by the appraiser and dings you for missing this prior listing (substantially lower)

What is the purpose in doing that? The comps in question could easily be substituted with another comp that has no prior. They both know it.
Is the review biased? or did the reviewer do his/her job?

Are we required to research all prior listings of the comparables?

That's not my point. The DOM and $SP/LP ratio have to do with analyzing the market, not which comps I'll use. But the DOM for your comps should be consistent with the marketing time you put on Page 1. So when I do my analysis of the market, I show high, low and median for each quarter, plus actives, and number sold. I should do a DOM chart as well, but that would take another 4 hours on my MLS since I'd have to do a spreadsheet and manually check every sale for it's listing history to get the true DOM and original list price.

The result here is that in the process of making their listing "fresh", they are also misleading others as to what's really going on in the market. That's why some MLS systems now have DOM and Cummulative DOM, which mine doesn't have.

 

[Mike Boyd]

Let's say you make a "discovery" that a comp has been on the market for 120 days rather than the 90 days shown on the listing print-out. Will THAT change or influence your final value? One comp does not a market make. How likely is it that all 3 or 5 of your comps have "misleading" data?

I repeat: MLS is designed to market real estate, not to make it easier for appraisers to do their job. The tools are there to do more research if you want to do it.

 

[MattCaffrey]

Policing of churning will be done by the associations, who will review new listings for compliance to MLS Rules and Regulations ......

have yet to see this happening on any consistent basis in my area. And that involves four different MLS services. Looking into the nooks and crannies of Expired, Withdrawn and Under Contracts is where I regularly find data that closed but was left unreported. The sloppiness allowed by the MLS has added much more time to reports.

I'll agree with this, 'MLS is designed to market real estate, not to make it easier for appraisers to do their job. The tools are there to do more research if you want to do it.'

but disagree that, 'the only relevant DOM figure is how long it had been listed at the price it was when it sold.'. imo, a property's complete DOM that is out of the ordinary should raise your eyebrows. Only AFTER you've analyzed it can you determine if it has any impact or is worthy of mention in a report.

 

[Smokey Bear]

Mike, I'm not talking about my comps, I'm talking about market analysis. And when I do a random check, I find that in the last quarter, DOM is at least twice what the statistics show due to churning. I'm trying to get an accurate picture of the MARKET, as well as report the accurate DOM of the comps. Checking listing history for 4 or 5 comps is no big deal. Checking it for 100+ comps for the past year IS.

 

[Mary Tiernan]

Marketing Times

When I state that typical marketing time is 3-6 months, I always state for APPROPRIATELY priced properties.

I agree that an analysis of all listings/sales is in order for each property utiized in a report, subject, comps, etc. But, unless there is something earth-shattering about previous/expired lists of the comparables, I don't usually mention them, but do include total DOM in grid. If the property wasn't priced appropriately to begin with, then it took longer to sell.

In my rural market, however, it takes more than 1 month to establish a pattern, in some of my areas, it takes two years (two selling seasons) due to lack of sales data.

We are seeing extended marketing times in some areas - just no proof of declining values as yet. I always mention extended marketing times which may result in declining values - but without proof, what more can I say?? No time of sale adjustments from last year to this year in most of my markets, but I wonder next summer if I will be making negative time of sale adjustments?