Current listings better than recent sales ? ?

[bradellis]

Bemis,

Those instances you cite happen all over the country but are simply not the norm. MOST realtors do not take the time to play such games, and even when you know some do, UNLESS you are in a market where very few listing/sales occur, it will hardly skew the numbers.

If the database is big enough, the MLS data can be very revealing. I've used it more than once in court- always with good results.

You asked if one would like to have a broker whose marketing time is under a week. Answer- HELL NO. It means they are either underpricing the properties (in normal markets) or are playing games like you outlined. Would not trust that one under either circumstance.

Brad Ellis, IFA,RAA

 

[AC King]

Brad,

Thanks for explaining how I reach my opinion of value. It is very comforting to read your thoughts and ideas on appraising residential properties.

 

[Rlong]

I agree with everything Bemis Pownall says. You can "dig deeper" and find out some of this on better MLS systems. As in the case I sited I went back and checked history of the current sale/listing and entered the address of the comparable sales and listings to find other intentionally or unintentionally hidden listings. In this particular market it is one of the few "Unexploited" micro markets in our region. (rapidly increasing one) I had commented to a freind last year I thought we could make some money in this area buying and fixing up properties (I'm a former GC, and he's a current GC who used to work under me). It simply appears it has been discovered.

This is an area that would have been "redlined" in the 70's, and the homes are still selling for nearly 1/2 of the average sale price. I like the homes, but here to for, everyone (investors, fixer upper people) stayed out. I still want to buy some at the right price. So in my case I think the listings are ABOUT right. I didn't reconcile to them, just gave them some weight.

Again check MLS for "other listings", check County Clerk for sales or other fishy stuff AND call the realtor and ASK THEM what are they're thinking is. Some will tell you, some will BS you, after a few year you can tell the difference. I like the ones that are selling a load of crap and actually believe it.

 

[Ted Martin]

I find that the listings are useful in determining and supporting the spicific value point within the range which is established by the comparable sales. If the active listings indicate an appreciating market then I am probably justified to select a value at the upper end of the range of value which I have developed with the comparable sales.