[quote=Sandi Egan][quote=temeculaguy]Sold means the owner changed, it does not always mean that it was sold on the open market, but any good repo stalker knows, those are the ones in the “on deck” circle.[/quote]
That’s what I suspected.
However, I seriously doubt these transactions are included in #of sales, median price and comps calculations. There must be a sure way to tell open market sales from these fake ones, right?[/quote]
The problem is defining what makes up “open market”.
* Trustee sales don’t always result in the property going back to the bank – sometimes private parties or investment groups pick up these homes. Do you count these? I think you should.
* Short sales – some would argue these aren’t “open market” since there is the bank approval process which may or may not put more weight towards all cash offers, etc.
* REO sales – the bank selling the forclosed house. I think most of us would put these as open market sales. But the selling banks have been known to put in weird requirements/restrictions on buyers. (A friend bought a REO – the bank tried to insist they finance through them for example.)
“Open Sales” is a nebulous term with lots of different interpretations.
JtR has had a series of posts on his blog about a client who paid cash for 5 houses, rehabbed them and is now selling them. Were her purchases open sales – she paid cash which takes her out of the norm – but she used a realtor – so she was working within the MLS system. Some of the comments over there imply her purchases were not open sales.
