NEWS
Accuracy Matters: List Price changes and Appraisals reminder
Changes to List Price are meant to assist the sale of a property and not to influence appraisals. Before making an update to your List Price, consider the needed documentation and potential implications.
Bright MLS subscribers have reported an increase in “last minute” increases to Active list prices just prior to the listing going under contract. Often this new price is identical to the contract price on the agreement of sale. While this activity is not necessarily a violation of Bright MLS rules, subscribers should understand the following related to price changes in the MLS:
- All changes to Active list prices must be associated with a price change addendum to the listing agreement.
- To protect themselves and their clients, subscribers must be able to distinguish between legal and illegal mortgage practices which may result in mortgage fraud. This article from NAR provides information on recognizing the signs for mortgage fraud. Learn more.
In addition to the possible risks associated with such activity, making last minute list price changes prior to going under contract may not have the positive affect on appraisals you might expect.
Bright reached out to several experienced appraisers to comment on this activity. They shared that this altered information is misleading and a disservice to agents (using sales to try to list properties correctly), appraisers (using arms-length sales) and the lending industry comparing list prices to sold prices for statistical underwriting.
Have a question about Accuracy or Bright's Rules?
Contact our Accuracy and Policy Department with any questions on this topic or other rules concerns.