Wikinvest Wire

A disturbing development in Texas real estate

Thursday, June 18, 2009

This report in the Dallas Morning News provides one more reason why the National Association of Realtors may someday cease to exist, at least in its present form.

More home sales prices kept secret in Dallas MLS
Early this year, a Tudor-style cottage in the M Streets with a stately stone exterior and stained-glass windows was listed for sale at just under $500,000.

How much it sold for is top secret. That's because real estate agents, buyers and sellers are keeping sales prices under wraps on hundreds of houses – even on the Multiple Listing Service.

The trend is troubling some market watchers because Realtors and appraisers use the service to set prices and prepare offers. And everyone who depends on the data – including the economists who track the North Texas housing market – is getting only part of the housing picture.

"It started pretty much in the high end, and it's spreading out and getting worse," said longtime Dallas appraiser Jack Towers. "It's misleading, and most people are unaware of this happening."
The rest of the article is well worth reading. Apparently, Texas is one of only five states that do not require all sales to be reported at the county courthouse, so, this is not a nation-wide development. If you live in one of those five states, however, be careful.



Anonymous said...

How does Texas being a non-disclosure state have anything to do with the viability of the NAR? That's quite a stretch.

Bruno T said...

Anon, Perhaps he means that organizations that lose their credibility through repeated cheerleading instead of objective analysis, dishonesty and obfuscation about facts, etc often fail, as a) nobody wants to be associated with them, and b)nobody wants to do business with them.

When a rival realtor group comes along that promises (and delivers) a more realistic and honest mindset, they could put the NAR out to pasture quite quickly, as people will pay a premium to deal with an honest organization.

The NAR track record coming into the housing crash wasn't one of blunt honesty and wise advice to clients.

Condos in Toronto said...

What are the other five states that do not require all sales to be reported at the county courthouse? I tried to google it but didn't find anything. Thank you!

Take care, Elli

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