Comparable listings help appraisers support home values in a rising market but, beware – if not done correctly, you could have a very unhappy buyer on your hands. MLS rules require agents to report sales of all homes listed in MLS and some buyers will object. Fourteen percent (14%) of all homes listed in MLS by HomesUSA.com® are listed for Comp purposes.
THE PROBLEM: When a contract has been accepted, some buyers believe ownership have transferred rights to them. When they learn “their” home is listed in MLS, they believe “their ownership rights” have been violated because they did not authorize the listing.
In such cases, these buyer express their concern in very strong terms and demand removal from MLS. They also forbid reporting the sales price of their home to MLS which they believe reveals the sales price to the County Tax Appraisal District, potentially increasing their property taxes.
Consequently, buyers are not impressed when informed “their” home was listed by the builder and actual owner of the home. They are further distressed when told the listing agent is bound by MLS rules to report the sales price to MLS and their demand can’t be honored.
THE SOLUTION: Include an “Authorization to List in MLS” in your contract, or add a form in the contract package for this purpose. Having the buyer’s authorization to list the home in MLS will minimize buyer complaints of this type.
If you are not using an Authorization to List in MLS, consider including one; you will not regret doing so.