Are properties really selling over market value?

[Evincere]

Do you apply driving distance to all of you sales?

not when there's 3 match models sold within 60 days within the same project. And besides, My Appraisal software doesn’t calculate the routes crows take to get from one place to another.

. . But why do you ask, are you a Realtor?

 

[Fernando]

Listing agent are using their low listed price for marketing.
I saw a brochure where the listing agent is boosting that he had the highest price difference from listing price than other agents.
He sees it as his agent's skills in getting buyers to bid over the list price.
I see it as his laziness in listing his property way below market price without checking market price range in area.

 

[Dublin ohio]

not when there's 3 match models sold within 60 days within the same project. And besides, My Appraisal software doesn’t calculate the routes crows take to get from one place to another.

. . But why do you ask, are you a Realtor?

So your appraisal software does it by driving distance? Hard to believe. Must look funny when you have a sale right behind the subject but you have to drive 1/4 mile through winding subdivision streets to get to it. The three model match argument would have been a better point than talking about flying crows. I only asked because you made the comment. I did not know some appraisal software uses actual street driving distance. Seems odd. Yes I am a Realtor. But I am not a real estate agent. But I have stayed at a Holiday Inn.

 

[Evincere]

So your appraisal software does it by driving distance? Hard to believe. Must look funny when you have a sale right behind the subject but you have to drive 1/4 mile through winding subdivision streets to get to it. The three model match argument would have been a better point than talking about flying crows. I only asked because you made the comment. I did not know some appraisal software uses actual street driving distance. Seems odd. Yes I am a Realtor. But I am not a real estate agent. But I have stayed at a Holiday Inn.

The driving distance talking point as justification for the ROV was the Realtors, not mine. It's too bad the Realtor chose to completely ignore the most recent subdivision match model comps before he went to lender for the ROV request by suggesting I go elsewhere so as to meet the contract price because that is exactly what he did. 1. Doing so really showed either his lack of professionalism or ignorance 2. He could have -should have done a simple CMA himself instead of a $30K hike in price (even reviewers have access these days to the same comparable sales) 3. He did a disservice to both Buyer and Seller by delaying the processing of the loan.

So, What method does your Appraisal software program use to measure distances on a comparable Sales map? An Abacus? The National Audubon Society's Avian Flight patterns?

 

[J Grant]

The title of thread is are properties really selling over market value ?
Short answer...there is no "market value " benchmark officially out there-(if there was we would not have a job ).

Properties sell at prices, properties do not sell at values .

Applying the word "value" is conceptual, an analysis of a price . Applying the word market value ( for an appraiser ) means the price was at the terms and caveats of the Market value definition. However, a market value definition of a most probable price is not an appraisal. An appraisal is a market value opinion ( as defined ) .

Buyers and sellers have their own slang terminology and sometimes market value is there, but their use of it and our use of it is a bit different ( if it was the same, they could do the appraisal ) .But conceptually, many times buyers or sellers will compare a price to some idea of "market value ", or a fair price in their eyes. As with any value opinion, theirs may come about with a bit of historical prospective. Their feelings about the price might be one thing the day after closing and another thing 3 months later and another thing a year later ( which is why a value perspective needs historical context )

Thus buyers say things like " I got a good deal", or "I paid too much " or " I got it as a steal" and sellers say things " I took a low price" " I got a great price" : " I got a fair price"

 

[The Warrior Monk]

Would you consider these multiple contract bidding wars as undue stimulus?

The key word is "multiple."

Are we talking about a bidding war on one property, or a marketwide phenomena where this is happening with multiple properties due to supply and demand issues? In other words, is it a transactional or marketwide issue?

 

[residentialguy]

Yes, and the market was also speaking in 2005-2008 - What did the market say afterwards? Opps?

Not the appraiser's job to regulate it... just report it.

 

[residentialguy]

And I suspect that there are more than a few Realtors are getting savvy if not downright sneaky. ie. what I am seeing is MLS brochures for subject property - brochured as Turnkey with descriptions of all the expensive beautiful furniture included in the sale.
. For example. List price of $575K - Contract price of $675K - $75-$100 K above List price. No listings, a few pending within $$550 - $600K. Closed sales 550-$600k. No mention of personal property or furnishings in contract. Me thinks there are some side/under the table deals going on.

This housing market is starting to look like the Covid run on TP

That's where appraising comes into play. This needs to be analysed and verified by the appraiser.

 

[J Grant]

Not the appraiser's job to regulate it... just report it.

We don't regulate a market, but we don't passively report it either. We are supposed to analyze the market in the appraisal report.

If we merely reported the market we would be like Zillow or an AVM or any of the plethora of RE data and sites available.

 

[residentialguy]

We don't regulate a market, but we don't passively report it either. We are supposed to analyze the market in the appraisal report.

If we merely reported the market we would be like Zillow or an AVM or any of the plethora of RE data and sites available.

Yeah... did you miss my next post? Or was that a lalalalala moment?
There is a delete/edit button so you can take your foot out of the mouth without anyone looking. But now it's too late... I caught ya.