Adjustment to Listing?

[Dianna Fresno]

I was asked to make an adjustment to active listings to account for the average sales price to list price ratio of homes in the area, or to provide a specific comment. I think I know what they are asking for, but I'm not sure how to go about it. Please help. Thank you in advance.

 

[CANative]

Take a bunch of sales in the area and divide the sales price by the list price. If it was listed for $100k and sold for $97k the SP/LP ratio would by 97%. If most are selling at this ratio then it would be logical to make a 3% downward adjustment to an active listing for SP/LP ratio.

 

[Smokey Bear]

Of course, that requires no churning for the data to be accurate...

 

[Dianna Fresno]

Thank Wayne. That help! I love you guys.

 

[Dianna Fresno]

Where should I make this adjustment? There is no field on the Listings form for this adjustment. I have a statement in the comments section, but dont know where to make the adjustment.

 

[RSW]

I always make it on the line where the sales date appears. I type in the word, "LISTING" and make an adjustment. I then comment on the percentage of the adjustment and how I arrived at that percentage.

 

[TJSum]

When the AMC or client asked you to make a listing adjustment for any particular listing, aren't they asking you to give an opinion of value for that listing? They are asking you to study the market data to come up with a probable selling price on that listing, that is an appraisal. How many subject properties are allowed on one assignment ??? Yes, I am going overboard somewhat, but it demonstrates the point, instead of making that bogus adjustment (due to all the assumptions involved with it), I just use a comment to explain what a listing is and what it should show about the market and leave it at that, never have had a complaint yet...

 

[SANDY]

Also look at how old the listing is and how many times if any the price has been reduced.

 

[Head Surfer]

Thank Wayne. That help! I love you guys.

Wow, I must have sent that one by ESP or something!

 

[Restrain]

Take the last line in the grid and put the list/sale ratio of each sale that you use in the description portion. Then adjust your listings on that line, showing what your indicated List/Sale ratio is. For example, if you have sales with a l/s ratio of 97%, 94%, 95% and 94%, you can adjust your list/sales at 95% and will have proved your list/sale ratio adjustment.