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italianbeef
Posts:13
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| 09/07/2008 4:24 PM |
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| Is it legal for homebuilders (caring since 1881) who list their inventory homes on the MLS to keep the listing(s) in active or pending status even though the home has been purchased and has closed escrow? I'm guessing they probably sold the home for a lot less than asking price and don't want to scare off potential buyers. Any thoughts? |
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OldDog
Posts:22
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| 09/07/2008 6:29 PM |
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I've seen this with other builders (in the Stonebridge area). Another trick I've seen is when the builder creates an inflated sales price by paying some of the down payment. For example, if the asking price is $1.1 M for a house worth $900 k, the builder may insist on the higher sales price in order to keep up the comps in the development. [So, the buyer pays $900 k, the builder pays $200k toward the down payment, and then the house sells for $1.1 M - and the builder then uses that as a comp for the next sale to "prove" that houses in that development are worth the inflated price].
I can't say I know why they keep the MLS listing active, unless its some kind of bait-and-switch tactic. But, I'm sure that whatever the reason, it is intended to help the builder.
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Horst
Posts:33
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| 09/07/2008 7:35 PM |
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They should be closing those listings, I think the MLS regulation is that it needs to be updated within 3 days of closing. They could be fined and lose MSL access if they are breaking the rules. Somebody once posted an email address to report MLS violations. Track it down and submit a violation report.
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