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Sale to list ratio - 1004MC

Discussion in 'General Appraisal Discussion' started by Caitlyn Stuart, Nov 11, 2009.

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  1. Caitlyn Stuart

    Caitlyn Stuart Sophomore Member

    0
    Aug 9, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Pennsylvania
    Median sale price - $92,750

    Median list price - $90,250

    What is the sale to list ratio - 90% or 3%?
     
  2. Jay Emmar

    Jay Emmar Junior Member

    0
    Feb 19, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    Neither. based on your question the answer is 102.7%. Properties are selling for higher than list, so it must be over 100%

    If you meant the opposite, then it's 97.3%
     
  3. Caitlyn Stuart

    Caitlyn Stuart Sophomore Member

    0
    Aug 9, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Pennsylvania
    I agree - but how are you calculating this %?
     
  4. Jay Emmar

    Jay Emmar Junior Member

    0
    Feb 19, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    Simple - median sale $ divided by median list $

    92750 / 90250 = 1.027 or 102.7%

    The calculation is the same every time

    If the median sale is $95K and the median list is $100K, then it's 95%

    95000 / 100000 = 0.95 or 95%
     
  5. carol109

    carol109 Sophomore Member

    0
    Oct 14, 2009
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    $92,750 /90,250 = 102.7
     
  6. Mike Garrett RAA

    Mike Garrett RAA Elite Member

    15
    Jan 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    A certified appraiser is asking this question?
     
  7. Rich Heyn

    Rich Heyn Senior Member

    4
    Jan 17, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    Median Sales to List Price Ratio was on the original 1004MC issued by Fannie Mae in November of 2008. At some point, I think it was March of 2009, that data field was changed to Median Sale Price as % of List Price

    The Median Sale Price as % of List Price is not calculated by dividing the Median Comparable Sale Price by the Median Comparable List Price.

    It is calculated from the individual sales that make up the Total # of Comparable Sales (Settled) for each period.

    Suppose you have 5 sales for a given period. Each sale had a list price at the time it was sold. That list price is divided into the sale price and a Sale Price as % of List Price is calculated for each sale. You now have 5 percentage figures. Sort the figures from low to high or high to low and the one in the middle is the answer the riddle.
     
  8. Joyce Potts

    Joyce Potts Elite Member

    11
    Feb 6, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    All that said, in my market it's not uncommon to see the LP:SP ratio over 100% which when seen in the 1004MC is freaking out underwriters. I've been asked more than once 'to correct' it. It's the result of people bidding up prices over short sales and foreclosures and of course a way to play with the selling price to enable the seller to pay for a portion or all of the buyer's closing costs.

    Record the HUD-1's!
     
  9. Mike Garrett RAA

    Mike Garrett RAA Elite Member

    15
    Jan 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    Happening in my market too. Rich...my MLS stats gives me an average sales price and average list price for the number of sales. No one has ever questioned using those numbers to calculate the LP/SP ratio.

    I am still concerned that the data is so limited the outliers skew it badly and the results are not meaningful and could be misleading.
     
  10. Caitlyn Stuart

    Caitlyn Stuart Sophomore Member

    0
    Aug 9, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Pennsylvania
    My report reflected 97% - UW said it should be 3%

    Sorry - I gave it to you backwards.

    List was $92,750 - Sale was $90,250

    Mike G. - comment was uncalled for.... (in my opinion)
     
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