I recently sold a home that was listed in the MLS and a neighbor called to ask me what the sales price was. Can I tell them?
Yes. If you listed the home or participated in the transaction as the buyer’s broker, you can share the sales price. It is recommended that you get your client’s permission before sharing the sales price.
The MLS rules allow for MLSs to impose the requirement of reporting sales prices to the MLS as long the MLS categorizes sale price information as confidential and limits use to participants and subscribers.
What other brokers who participate in the MLS can do with the sales price information of a home you listed—share it with clients and customers or use it in advertising, for example—depends on your MLS rules. Contact your own MLS for more information.
It is a misconception that a listing broker or buyer’s broker is prohibited from divulging a sales price because Texas is a non-disclosure state. Non-disclosure relates to the ability of government entities such as appraisal districts to compel disclosure of sales prices; it does not mean sales prices are confidential by default. The limitations on use of sales prices stem from the local MLS rules.
If the Property has Closed, It MAY already be a matter of Public Record and be Recorded with the County and the neighbor, if he/she knows how, can check the county tax records re the Property.
You must not be from Texas. Sales prices are not publicly recorded with any governmental entity.
That’s incorrect. Our CAD has direct access to the MLS and therefore, the sales price (and list price) of any property in MLS.
Mike, there is nowhere in Texas that sales prices are recorded of public record. Whether or not the Central Appraisal District gets the information is a separate issue.
Appraisal districts in TX do not have access to the MLS. As for the information being a matter of “public record”, the only way for someone to get an idea of what a home sold for would be to search public records for any mortgage instrument which will list note amount. However, this info will not contain how much the down payment was, if there was any concessions, or any other compenstion, so it is very unreliable. If buyer paid cash, then the only info in public records would be the deed transfer.
Metrotex has granted MLS access to Tarrant Appraisal District . This 8s fact and confirmed a few years ago by the MLS Director. I never asked which CADs, but I know Tarrant County does. She said the.lawyers condoned it. Look at the sales data they use on the individual appraisal notices. It’s exact data from the MLS. You know sellers and buyers don’t realize they are handing this data over. They used to allow zeroing out sales price, but withdrew that option years ago. The biggest problem, imho, they can’t use it properly. One of my comps on my personal… Read more »
Unfortunately you are miss informed about the appraisal districts not having MLS sales. I am a property tax consultant and broker let me explain Harris, Montgomery , Fort Bend and a number of others have MLS sales by access to the association. Believe me we don’t like it at all here in Texas. I pay quarterly fees as a broker to HAR and do not feel the district’s access to the information should be allowed. How they get in I feel is not on the up and up. So just clarify your understanding.
Many mls give access to cads, MetroTex does but last time I Che checked there’s a 2 month drag on it. It’s all up to mls
Holy smokes! Your MLS association gave permission to the taxing district access!
If you are running comps for homes in that neighborhood for a potential listing agreement, does this mean you can not share comparable information with the potential client?
I think it is time for Texas to drop the non-disclosure, only a handful of States are doing it. It seems that nobody knows what it means. Appraisal districts don’t need to compel disclosure, because we are giving it to them every time we protest their values. We show them comparable properties and what they sold for to help reduce our appraisal and taxes. They use this information in their appraisals. I think of real estate as an investment, and we all need to know what other properties sold for so we can establish an accurate value.
I have heard our appraisal district hires Realtors to get our sales data….so they get the information they want regardless of rules….the amount filed when sold is the financed amount not the sales amount in San Antonio.
Last appeal I did (prior to becoming a realtor) the appraisal district sent me the comps (full disclosure on their part required) I bumped them against public data (Zillow, Trulia, Realtor.com etc. as well as my HUD1 and they were darn close. I ‘assumed’ they had MLS access. I shaved a few hundred off my tax bill, but it was in the ballpark.
I have appealed my own property values several times (and won them all) and yes, CAD shows me comps and I show them MY comps and explain the differences. If I can pull a CAD record on any property and see MLS data, if it has sold in recent history (don’t know how far back ours goes), any ordinary person can see the same data if they want to pull a CAD record on any property, for any reason.
Just because people may be ignorant to what it means doesn’t mean we have to change the system. There is no compelling reason for the government to know the sales price of a private transaction. Texas is one of a handful of states without an income tax but that doesn’t mean we should follow the others.
Absolutely wrong. Most states that have mandatory disclosure have used it to start real estate transfer taxes. Texas REALTORS have stood firm for a long time that they (us) will fight mandatory sales price disclosure because it is bad for real estate. We fought hard to get real estate transfer taxes banned in Texas through a constitutional amendment. We don’t want it back ever. Besides I could write a book on how often the sales price does not reflect a true market value.
Non disclosure is important for commercial deals and for very high end residential. It is up to the principles to disclose as they will to any entity. MLS in Texas has a sold section on residential listed on the MLS. MLS requires the information to be entered. This is in the listing agreement also. Susan White, Yes you may disclose your comp findings with your clients/customers.
I am so sick of Liberal minded ideas like this. What an individual agrees to pay for a property should have no bearing on what others are taxed for theirs. That is not what an appraisal is meant to capture. There is a real value, an appraised value, and a paid value for property, and they are all different. Because some multi-billionaire is able to take cash out of pocket and pay a gross amount over value, should not give an appraisal office the right to increase values on others property. And let’s be honest: Appraisal Offices creep the appraised… Read more »
Collin County CAD has complete access to the MLS system. And they will use it against you all of the time.
Then why does Metrotex allow someone at the Tarrant County Appraisal District access to our NTREIS MLS records. The appraisal district is a government entity and it knows the sold price of every home they want to look up. This has resulted in a huge increase in property values every year they have had access. My property value went up 61% according to the letter I received from TAD on Monday. Yes the appraisal districts have access to sold data and our board makes money giving it to them. That is bad for our client’s and compromises confidentiality. Someone needs… Read more »
Unless this has changed HCAD sends every home buyer a questionnaire asking, among other things, what they paid for the home. Most people just fill it out and send it in as a matter of course because it is viewed as an “official” request. This form is optional altho I doubt the county wants homeowners to know that. Please correct me if I am wrong…
Keep up the great work! Thank you so much for sharing a great posts.