Comparable Sales in the Multiple Listing Service

The Multiple Listing Service (MLS) is a database exclusively used by real estate agents to list properties available for sale. However, some of this information is now accessible to the public through websites like Realtor.com and MSN HomeAdvisor.

When a property is sold and the transaction is completed, the selling price is added to the listing in the MLS, creating a vast database of past sales. This information provides more details about individual homes than what is available in public records. However, access to this data is still restricted to real estate agents who are members of the local MLS.

Your agent will provide you with this data to help determine your offer price.

Comparable Sales – Pending Transactions

The most valuable information would be the most current, of course. A sale last week has more validity in helping you determine a purchase price than a sale from six months ago. The problem is that there is no actual record of the sales price until the transaction is completed. The information is not available in the public record because no deed has yet been recorded.

Neither is the information available in the Multiple Listing Service. Once a property is sold, it becomes a “pending sale” and all pricing information is removed from the listing. Prices are not posted until it becomes a “closed sale.” This protects the seller in case the transaction falls apart and the property is placed back on the market. It would give an unfair advantage to future potential buyers if they already knew what price the seller had been willing to accept in the past.

However, if a Realtor has a reason to know the sales price, they can usually find out through professional courtesy. Also, some real estate brokerages post sales information on a transaction board in their office.

Conclusions

To determine a fair offer price when buying a home, it’s important to gather and analyze information from comparable sales. While recent sales should be given more weight, additional factors such as the property’s condition, any improvements made, current market conditions, and the seller’s motivation to sell should also be considered before settling on an offer price. By taking all these factors into account, you can make a well-informed and fair offer.

If you have any questions, you can contact us at +1(516) 829-2205 and +1(516) 647-4289. Additionally, you can find us on various social media platforms such as Google My Business Profile, Facebook, Twitter, Linkedin, Instagram, YouTube, and Pinterest.