Are real estate agents not putting low sales on the MLS?

Low sales pricesThere’s a lot of controversy swirling around the “off market” or “off MLS” sales of properties when professional real estate agents are involved in the transaction, whether they are part of an mls-type of club or a pocket listing which was independently brokered without the multiple listing service. Ordinarily, homes listed for sale are offered as such on the multiple listing service, or MLS.  Sometimes, though, for a wide variety of reasons, some homes sell without having been marketed there.

In many cases, even if the sale was “off market”, the real estate licensee representing the seller will put the sale on the MLS at the time of closing so that the sale price can be used as a comp, or comparable sale.  In other words, they add it because it’s an important element in the database.
When there’s a low price tag, though, some Realtors or other licensees don’t want that price to show up on the MLS.  Why not, you may wonder.  Their thinking often runs along the line of “we don’t want to hurt property values” or “that’s going to hurt my listing which is coming up in a couple of weeks”.

(more…)