Discussion in 'General Appraisal Discussion' started by Caitlyn Stuart, Nov 11, 2009.
Median sale price - $92,750
Median list price - $90,250
What is the sale to list ratio - 90% or 3%?
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%
I agree - but how are you calculating this %?
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%
$92,750 /90,250 = 102.7
A certified appraiser is asking this question?
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.
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!
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.
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)