Clark Howard who is well known here in Georgia (Consumer Advocate) was talking about "Pocket Listings" and buyers finding homes on Social Media sites as these Pocket listings are not found in FMLS/MLS or other typical Realtor based websites. I get why Companies have Pocket Listings .... but consider this.......
Appraisers cannot use these Sales most of the time! Why? Because Appraisers cannot use Unlisted Sales as they do not provide essential required data in order for Appraisers to use them in their Reports. First of all they are not exposed on the OPEN market like the other sales. Secondly we do not know the important details about the home that Listings Provide. Third; Appraisers will not have more than one verification source which is required by Fannie Mae. FMLS Closed Sales count as one source and Courthouse Records of the recorded sales count as another. Take away the listings in FMLS/MLS and we lose one verification source.
In addition, there are no Photos for us to review, We will not know what Seller Concessions if any were paid, We will not know the buyer and sellers motivations, was it a typical or non typical transaction. We will not know the details of any upgrades or updates to the homes like we do when we review the Listings and we can talk to the Listing Realtors, etc.
If you want Appraisers to use the most recent sales (assuming they are Market Value sales) which will result in the most up to date market data, then POCKET LISTINGS could be hurting your future sellers Appraised Values. Just something to consider!
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