Dom < Typical

[ZZGAMAZZ]

I wish to include active listing(s) in the SCA of each residential appraisal, in addition to several comparables that have closed sale. These listings are included to reflect the mean list price of properties that are similar to the subject.

The market analysis reveals that properties typically are listed 90-120 days before being sold.

Question: Is it inappropriate to include active listings with DOM, say, of 3o - 60 days, because they have not received adequate exposure in the current market?

Thank you.

 

[TJSum]

DOM is not an exact science. Some agents / HO's are more realistic in their initial listing prices than others. You could have a properly priced home sell in 30 days, whereas a home priced too high could sit for eons.

The best way to pick listings, IMHO is to find the ones most similar to your subject. If you have more than one, utilize the lowest price listings and this should demonstrate the value ceiling for your subject. If you don't use the lowest ones, then you are defeating the purpose of including listings in the first place.

 

[Richard Carlsen]

I'd put DOM in, since it relevant to the anticipated marketing time of the subject. Unless the client wants the DOM to be noted for every sale in the grid, I provide it as an average for the relevant market segment that is applicable to the subject over the past 12 months .

As to using a listing in the grid, it is my opinion that a listing in the grid should not be used as an indicator of the subject's value but only as support that the opinion of value contained in the report means that the subject would effectively compete with the present listings if offered to the market as of the effective date. This is nothing more than an attempt at confirmation of the Principle of Substitution and sort of a back door way of providing additional justification for your opinion of value.

If you use a listing as such, and do not consider it in your opinion of value as generated from the sales grid, be sure to note that in the report so the reader does not misunderstand what has been provided in the sales grid.

 

[Marcia Langley]

Question: Is it inappropriate to include active listings with DOM, say, of 3o - 60 days, because they have not received adequate exposure in the current market?

No, It is not inappropriate and you can discuss the effects of the listings' less than typical DOMs in your comments.

 

[Chris Colston]

ACTIVE listings....still on the market, not under contract or closed, right? I'd use the ones most like the subject that have the most recent list date. These are the expectations of the sellers in the area, I would also include older listings that have not sold but perhaps have had their "expectations" reduced over the list period.

 

[Mike Garrett RAA]

DOM is requirement for VA appraisals including a certification that the appraiser has considered relevant listings in the analysis of the market.

 

[leelansford]

...
The best way to pick listings, IMHO is to find the ones most similar to your subject. If you have more than one, utilize the lowest price listings and this should demonstrate the value ceiling for your subject. If you don't use the lowest ones, then you are defeating the purpose of including listings in the first place.

Yes! ! ! ! !