Latest Point of Sale Study Supports Realtor Position

REALTOR Party

Today, the Akron Cleveland Association of Realtors® (ACAR) released a study on the possible impact of point of sale inspections on the home buying and selling process in Cuyahoga County.

The study, which was completed by the Strategic Design Partners, analyzed residential home sales data from the Northern Ohio Regional Multiple Listing Service (NORMLS) over the span of 2012 – 2014. The data showed three primary results when comparing data from cities with a mandatory point of sale inspection to those without.

  1. Homes in cities without a point of sale inspection spend fewer days on the market.
  2. Homes in cities without a point of sale inspection have higher closing prices.
  3. Cities without a point of sale inspection have higher gross annual residential sales.

These findings suggest that city mandated point of sale inspections may hinder the home buying and selling process, resulting in less robust markets.

ACAR Past President John Lynch said, “While the original intention on point of sale inspection policy was good, it has turned counter-productive. Cities generally want to encourage owner-occupancy. However, many homeowners don’t have the money to do the cited improvements in the timeframe the cities require. Investors do and the more properties they buy, the more likely prices are reduced.”

ACAR recommends cities consider systematic exterior only inspections of all properties – not just those for sale – for neighborhood preservation and improved property values. The full report and more information about point of sale inspections can be found at www.RealEstateRansom.com.  

ACAR Director Cyndi Kane said, “I’m most excited about the new website, as it is a point of sale resource that agents can use out in the field and members of the community can access whether they are buyers, sellers, elected officials or other community leaders to learn more.” Real Estate Ransom

“This website and point of sale research are representative of the growth, collaboration, and what’s to come for ACAR as we continue to further our efforts as the voice of real estate in Northeast Ohio,” Kane added.

ACAR Legislative Committee Chair Maureen Wlodarczyk said, “I encourage any real estate professionals facing challenges due to a city’s point of sale policy – or any other ordinances for that matter– to use the contact form on RealEstateRansom.com. Our Legislative Committee and Government Affairs Department are ready to assist when possible.”

For more information about the study or website, please contact ACAR’s Government Affairs Director, Jamie McMillen, at 216.525.4834 or jmcmillen@AkronClevelandRealtors.com.

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2 responses to “Latest Point of Sale Study Supports Realtor Position

  1. This is an in-proper study. If the comparison was conducted within the similar price neighborhood, then the results could be different. For example, comparing the City of Mayfield Heights, with POS and to the neighbor City of Lyndhurst without POS. For years, the City of Mayfield Heights kept the property in a good value and good quality, therefore good attractive neighborhood. But the City of Lyndhurst is otherwise. But to a better average income city like Beachwood, close by. The residents are likely maintain their houses in a condition, because they have the extra income wanting to spend on the house improvement. Because of this, the houses in Beachwood do not need city to participate to keep their resident housing in a good condition.

  2. ACAR says:

    Thank you for your comment. Even if you disagree with the city pairings, which were selected by ACAR’s Legislative Committee REALTOR members, the county-wide statistics of non-POS cities compared to POS cities support the study findings.

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