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Failed Listing

Discussion in 'General Appraisal Discussion' started by shawn hickey, Dec 20, 2004.

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  1. shawn hickey

    shawn hickey New Member

    0
    Jan 17, 2003
    I recently performed an appraisal on a property and performed a cost approach and sales comparison and derived a value for the property. I then did a sales and listing history and found the property had recently(2 weeks prior) been withdrawn from the market after 5 months of being listed.

    The thing is the price it was listed at was than less the value I had come up with so it seems to me that my valuation must be too high. Doesn't this listing history demonstrate market value better than my previous analysis?
    I revisited my comparables and analysis and don't see any flaws and my original adjustments seem appropriate but it is in an area of fairly unique properties(far from cookie cutters with clear adjustments), so I think I definitely have to give precendence to this listing history and assume that my original analysis/sales comparison is flawed. Any thoughts? thanks!
     
  2. Pamela Crowley (Florida)

    Pamela Crowley (Florida) Elite Member

    3
    Jan 13, 2002
    Professional Status:
    Retired Appraiser
    State:
    Florida
    Well, if 5 months is longer than typical there is something definately wrong in your analysis. Is there something about the subject that lacks 'curb appeal' or are the colors strange? Is it cluttered or dirty? There IS something, IMO. Look again and try to figure it out. Were all your comps better in some way you don't readily see yet?
     
  3. OCApp

    OCApp Member

    1
    Jan 19, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    you may want to rethink your market analysis. also, you (and others on this forum) may not agree with me, but since we're a service business, one of the first things i do is check the listing and sales history of the subject before even going out on the inspection. if i'm appraising the house for a good lender client (or even a new client), you may want to give them a heads up that it was recently listed for sale in the MLS because many lenders won't or can't lend on properties listed for sale within the previous 6 months or so. you may lose a fee once in awhile, but you may also gain alot of goodwill.
     
  4. Tim Hicks (Texas)

    Tim Hicks (Texas) Elite Member
    Gold Supporting Member

    70
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Texas
    Paul, Goodwill gets you bumpkiss in today's lender world. Most lenders will just call the next appraiser on their list. Plus, unless you are an underwriter for that lender, how would you know their specific criteria for past listings? I have one lender client that will loan while the property is listed??? When appraisers start underwriting the loan instead of doing their appraisal assignment, they have over stepped their boundaries.

    You are right, the first thing an appraiser should do is to check property history of their assignment. That should give you a "heads up" about the market for the subject property. However, unless you perform an appraisal, I would not tell any lender any value until I have completed an appraisal.
     
  5. Karl

    Karl Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Arizona
    [/QUOTE] However, unless you perform an appraisal, I would not tell any lender any value until I have completed an appraisal
     
  6. JSmith43

    JSmith43 Elite Member

    22
    May 5, 2003
    Professional Status:
    Certified General Appraiser
    State:
    California
    Shawn: Every now and then a seller gets beaten down significantly on price by the listing agent. After a few days of thinking about it, they may cancel or withdraw the listing. One possibility is that home may not have been exposed to the market at the final list price for a significant amount of time.

    If your MLS doesn't reliably report price changes, I'd try and verify pricing history manually with MLS or the listing agent. This might be part of the mystery.

    It's hard to get perspective from here without knowing typical marketing time for like properties in the subject's area.
     
  7. Tim Hicks (Texas)

    Tim Hicks (Texas) Elite Member
    Gold Supporting Member

    70
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Texas
    Of course, my attitude might be why I have so much spare time to spend on the forum today. :cry: :rainfro: :cry: :rainfro:
     
  8. Steve Owen

    Steve Owen Elite Member

    0
    Jan 16, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Missouri
    Shawn, IMHO, the main thing you did wrong was the order you did things in. Like Paul, I would review what I could find about the property history before I do almost anything else. If the property was recently listed, I would immediately communicate that to my client. Paul, you are right... we are in a service industry, and the kind of information you are talking about sharing is a small service that will help cement your client base.

    Tim, respecting your viewpoint, having lost many a past deal myself, nevertheless, your implication that sharing listing information is like communicating an appraisal is incorrect. That is factual history and nothing else. As long as you don't say something stupid like "It couldn't be worth more than that." You have not communicated an opinion of value.

    That leads to my next comment for Shawn. If you had done things in the right order to start with would you have still come up with the higher value? If so, then there may not be anything wrong with your analysis. There could be many reasons why a property didn't sell. Maybe it wasn't aggressively marketed. Could be any of the things Pam mentioned. Or, it might have just hit a slump in the market. Of course, I would be very careful about having an opinion higher than a recent listing, but it is still possible....
     
  9. JSmith43

    JSmith43 Elite Member

    22
    May 5, 2003
    Professional Status:
    Certified General Appraiser
    State:
    California
    The local market was eratic in the run up to the election. No doubt, many markets had a reaction to the contest.
     
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