using listings due to lack of closed sales

Discussion in 'Urgent - Help Needed' started by kristink, Sep 22, 2011.

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  1. kristink

    kristink New Member

    0
    Mar 9, 2010
    Professional Status:
    Licensed Appraiser
    State:
    California
    I am appraising a live/work unit and only have two closed sales in the last 18 months.
    Does anyone have statement for giving weight to listings due to a lack of closed sales?
    Would you use a couple of sales of "typical" condos to support value?
    Any input is greatly appreciated!!!
     
  2. leelansford

    leelansford Elite Member

    15
    Mar 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    Assuming that the appraisal is for use in residential lending, not every situation lends itself well to a neat and pretty little package for delivery to the client.

    As to what might be appropriate 'comps' (vs. mere 'sales') is up to the market to decide.

    Good luck.
     
  3. CANative

    CANative Elite Member

    30
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    You may need a more robust data source such as LoopNet and/or CoStar.

    You can PM me your contact information and I might be able to help.
     
  4. AnonApprsr

    AnonApprsr Elite Member

    0
    Jan 21, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Massachusetts
    Expand your search in the 3 possible ways: style/type of property, date sold, and location.
     
  5. Mile High Trout

    Mile High Trout Elite Member

    2
    Feb 13, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    They can list to the moon, but what they get for it, is oftentimes a completely different story.

    The answer lies in the data. Are the listings reasonable from the shoes of a buyer? Does the principal of substitution apply to the data and results that data would indicate? Is there nothing else?, because listings as primary front page examples is a last resort, and possibly something you'd pass on in leu of an alternative to the market approach or some other extreme measure like cross comparing dissimilars and extrapolating adjustment benefit, then justifying out of range net gross.

    You'll often find that one high listing in so many markets, as well as super short pricing now and then. Don't forget to kick out skewed data if it's appropriate to do so.
     
  6. Terrel L. Shields

    Terrel L. Shields Elite Member

    63
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    Check out Mark Ratterman's article in the Summer issue of Appraisal Journal - he addresses such situations.

     
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