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Do you adjust listings in the grid?

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wickedness1

Thread Starter
Senior Member
Joined
Jul 12, 2007
Professional Status
Certified Residential Appraiser
State
Ohio
I would like to hear opinions on making adjustments to active listings in the grid.

Personally, we don't because we have no idea what is going to happen in the future & a prospective appraisal is not in our Scope of Work.

Do you guys adjust or let the lenders figure it out for themselves?
 

Blue1

Elite Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
How is making adjustments to listings doing a prospective appraisal?
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
I adjust them routinely if the market conditions support such an adjustment.

----edit to add:
I should say "if the market conditions or my research support such an adjustment." :new_smile-l:
 
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wickedness1

Thread Starter
Senior Member
Joined
Jul 12, 2007
Professional Status
Certified Residential Appraiser
State
Ohio
How is making adjustments to listings doing a prospective appraisal?

Thats not what I meant, but thanks for taking it out of context...can always rely on someone to do that on this forum!

:peace:

P.S.-- you didn't answer my question, you just asked your own :flowers:
 

Obsolescent

Senior Member
Joined
Jul 6, 2004
Professional Status
Certified Residential Appraiser
State
Minnesota
I adjust listings downward (when appropriate) by applying a percentage based on the difference between the average list price and average sales price within a specific market area, subdivision, etc.
 

Lawrence R.

Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
I adjust listings downward (when appropriate) by applying a percentage based on the difference between the average list price and average sales price within a specific market area, subdivision, etc.

I do the same and make mention of my methodology in my comments section...as long as you let your reader know what you are thinking, I would think either school of thought is just fine.
 

TXCBoy36

Junior Member
Joined
Oct 3, 2007
Professional Status
Certified Residential Appraiser
State
Colorado
I make the adjustments if adjustments are warranted. Using a listing is acceptable at displaying possible current market trends, so in that format, I would make the adjustments.

JC
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
I don't think there is a clear cut right or wrong way to this issue. I don't make listing adjustments, because the LP to CP ratio is just an average, it doesn't take into account whether a property is overpriced or underpriced during the DOM. I usually tell the reader several times that comps 5 and 6 are active listings only (#'s are examples) and are based on listing prices only. I also give the total DOM and the number of DOM the listing has been on the market at the current price.

The main thing is to pick the most similar listings to your subject, and if there are more than one, to use the lowest ones to establish your value ceiling for the subject property which is the main purpose of using listings in the first place.
 

Lee in L.A.

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
The main thing is to pick the most similar listings to your subject, and if there are more than one, to use the lowest ones to establish your value ceiling for the subject property which is the main purpose of using listings in the first place.

Bingo. And some areas have lots of listings now. So, go figure. :)
 

BlueDog007

Member
Joined
Jan 25, 2002
Professional Status
Certified Residential Appraiser
State
South Carolina
Wickedness-

You make adjustments based on differences between the subject and the listings (GLA, baths, condition, etc...) I hope you are "at least" doing that. I make an adjustment based on the list to sales price differential for the neighorhood for similar comparable properties. If that data indicates 6.2%, I simply deduct that amount from the list price for that particular listing(s). More and more lenders are requesting listings/pendings/contingent sales. However, I also include statements about the fact no credence of value is given to these comparables as they are not closed sales and were only provided to indicate current market conditions. You do need to make adjustments to listings, where necessary. Especially the list to sales price adjustment, again, where necessary.
 
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