1990s valuations

[PushinValue]

Hello, I have a few SFR retrospective reports for the 1990s.

How do you approach verifying sales? I have county recorded transactions and can spot outliers, but anything beyond that is... ? Do you have any articles or resources on the matter?

 

[Tom D]

From my personal life. 1989 was the peak of the market. It then crashed. I remember 1990 seeing 2-4 listings 30% lower than 1989. I remember cause i over paid in 1989, $43,200. I also remember the market being stable flat for a while. Then came the liar, no doc, adjustable loans the suckered in people who couldn't afford their mort when it adjusted up.

Freddie mac has a rates chart. You can see where rates came and went. There was no internet MLS, only books.

Verifying anything back that far is a good guess at best. But that is so far back, you would be pretty old to even remember parts of it, or even remember accurately. I remember 1989. Bought my house and got my SRA designation.

 

[Overimprovement]

Call your local MLS and see if they kept their index cards from the dark ages. County assessor should have searchable sales too.

 

[Fernando]

Hope you're charging a premium. How do you assume the condition back then?
I still have some CMDC books going back to 1999. Threw away the older ones.

 

[sputnam]

Hello, I have a few SFR retrospective reports for the 1990s.

How do you approach verifying sales? I have county recorded transactions and can spot outliers, but anything beyond that is... ? Do you have any articles or resources on the matter

You aren't going to be able (probably) to chat with principals or agents... and even if you do, they won't remember much about the sales. Verify using public records.. the deed. All you'll get is the date and the approximate sales price. Then, report the limitations of your verification process and why.

 

[PushinValue]

Ok so lack of verification is a limiting condition ?

 

[Terrel L. Shields]

How do you approach verifying sales?

If you have an MLS source, there may be some old quarterly sold books in the Board's office back that far. Our board's library dates to the late 1980s. Otherwise, it's time to go look at the public records, specifically look at the mortgage and see who financed it and look for a second mortgage to see if a seller actually carried part of the sale. Often there may be 10-20% carried by owner. Many in house bank lenders required 20% down unless a really good customer with other collateral. No mortgage? Then probably a cash deal.

The tricky part is the actual condition of the sale as of the date of sale compared to now. So, finding more recent sales of the property might give hints as to what was updated since the prior sale. It can get tedious and typically I have about double the time in the assignment just tracing back those sales to something reasonable.