Seller Concessions and Realtors

[Pamela Crowley (Florida)]

Just talked to a LO that told me that Realtors are going back into MLS and changing the listed price to the contract price just prior to ordering the appraisal on those that upped the contract price to cover up seller paid concessions. The Realtors that haven't learned this trick yet are being taught by the Loan Officers.

Bottom line: The cover up is happening and you need to check the listing history for price changes.

:twisted:

 

[rtubbs]

That game is probably played everywhere. I always check the history and report it whether it be an increase or a decrease in the sales price. I have dealt with some UWs that will not make a loan on a transaction that is greater than the listing price (even if the sales price and the appraised value is greater).

 

[larryhaskell]

Pamela:

That can be tough to do sometimes because the realtors in our area have complete control over whats in MLS. One of their favorite tricks in our area is to list properties at one price for a while and cancel the listing if it doesn't sale. Then they list it again the next day as a new listing. I've seen properties listed up to five times and each time it shows as a new listing even if it was only off the market for a day or two. We will certainly have to be even more diligent in the future with MLS, reviewing contracts and asking questions. I don't know whats required of a realtor but I would hope they are required to show any concessions in the contract. It would seem that the number of unsupportable sale prices would go up in the future.

 

[Ross (CO)]

I check the list history of the subject address--even if they are re-fi'ing on place they have been in for several years. Will also check all the comps and it is amazing how many interesting things pop up. Very easy to spot the one or two listings that preceded the last one that actually sold. Often see a cancellation or expiration with entry of the new listing (later) on same day, and usually at lower price. If that were the listing that got a contract in 10 days then 10 gets posted as its D.O.M. I will go back and string together the two or more consecutive listings and get a different total of days of full public exposure in the marketplace. You find out that the house had absolutely no updating for the last 20 years---and see the really nice place that was pristine and updated and contracted in 3 days and had never been listed in the 20 years since they bought it ! Yes, sometimes contracts fall through later and a place goes back-on-market, but often the initial perception of condition by wary buyers is directly reflected in days-on-market and usually at high % of list price, if not 100%. Any sales over 100% of list get the automatic call to list agent, or selling/buyer agent. Usually there are concessions of offering to cover closing costs, but sometimes you learn they had a bidding war with 2 or 3 or 4 shoppers seeing house around the same time. That's smart marketing when the agent knows they have a gem to sell !