Like I said, I think it can be done correctly either way, just so everything is properly explained. The reason I hold my opinion of not adjusting is because of the disordered nature of listings. We have listings that sell above LP, slightly below, greatly below, listings that are withdrawn or expire, listings that seem to change their price every two weeks and others who sit on the market for a year at the same price. Many times the LP/SP ratio seems to be determined by the amount of closing help more than anything else, and other listings where the agent actually changes the LP on the MLS on the date of contract, etc. Given the totally psycho nature of listing prices, to me, just taking an average of this disorderly data... I am not confortable with it. One assumption the "adjusters" seem to be making is that the listing will actually sell, for the listings that expire or are pulled off the market for any reason, what is the LP/SP ratio for those (there is none). If the appraiser has the misfortune of picking a listing for their report that does not sell and expires or is pulled off the market, that LP/SP ratio will not even apply to it because it is not part of that data set. I can see the "adjuster's" viewpoint, they feel if the listing is not adjusted for, the value ceiling conveyed will be too high. But my viewpoint is an "average" just doesn't cut it given all the variables involved, so it is good to leave it unadjusted and let common sense dictate how much of a cushion should exist between the value opinion and the listings.
