90-120 Market Time

[Pekejake]

Can someone explain to me what the reason is for 90-120 day marketing time.. The lender put in comments that if the days on market of the comparables and the typical neighborhood markeitn time indicate that the subject will sell in over 120 days (because the ave marketing time of the selected comparables is over 120 days) then the bottom two values should be discounted for a sale from 90-120 days. The number 90 should be written in for market exposure time.. How exactly do you go about doing this.. maybe im reading too much into these instructions.. Ive always had my first number as my as is value, the second as repaired, the third as the as is value again, and fourth number the same as the second number...

 

[wyecoyote]

The REO companies want to know if the typical marketing time is say 140 to 180 days for an area. What discount they would have to provide to sell within 90 to 120 days. So if your area typically sell for longer than 90 to 120 days what discount rate if any they would have to provide to get the 90 to 120 day marketing time. If on the other hand properties sell between 60 to 90 days in your makret then you do not have to provide a discount rate.

 

[Pekejake]

Thanks Ryan.. If properties typically sell in 35 or less days, would you list the marketing time as 1-120 on the forum then?? To satisy the 90-120 even though it falls under??

 

[Pekejake]

do you build that discount into the as repaired value and just comment? what kind of discounts do you typical give for your market?

 

[Caterina Platt]

Lori,

The 4 lines would show 'As Is', 'As Repaired' under typical neighborhood marketing times, and then 'As Is' and 'As Repaired' with the discount reflected for client imposed marketing time of less than 90 days. I don't reflect this as a part of the repair items.

The only way I've discovered to even attempt to pull this from the market is to look for those oddballs that sold quicker than typical 90+ days. Plot them along with your representative typical market sales on a graph, and see if you can develop a trend line. What is the percentage discount required to sell faster?

 

[Pekejake]

okay thanks to the both of you!