CANative
Elite Member
- Joined
- Jun 18, 2003
- Professional Status
- Retired Appraiser
- State
- California
I'm working on an appraisal in XX subdivision. Not very many sales in this city and very, very few in this neighborhood.
My comp 3 is a dated sale but I appraised it for it's sale last October so a comp from appraiser files is good. I made a 5% downward adjustment for changing market conditions.
For some reason I didn't spot this property when I ran sales the first time around. While putting the report together I spot it as an active listing. I then rerun the MLS# to get a full copy of the listing and it's actually a contract sale (as of yesterday). The list price is $319,000. The sales price last October was $320,000. At the time it had a real funky interior paint job (i mean really bad). Now the agent comments state remodeled with "warm interior paint colors and new carpet." Yes, some of the paint looks great but the carpet looks the same (I assume they replaced the "kids" room carpet which was bad.
On the market 103 days in a 130-180 day market.
Does this calculation hold water:
List price $319,000
Sales commision 6% - $19,000
Money in (paint/carpet) -$5,000
Net to seller $295,000
Oct Purchase price $320,000
June sale net $295,000
295/320 = 0.92 or 8% decline
Should I change my older sale comp adjustments to 8%.
The listing agents assistant just called while I was typing this post. He says the sales price is to be $325,000 and it's a sort of lease option with a 12 month escrow.
Now what?
My comp 3 is a dated sale but I appraised it for it's sale last October so a comp from appraiser files is good. I made a 5% downward adjustment for changing market conditions.
For some reason I didn't spot this property when I ran sales the first time around. While putting the report together I spot it as an active listing. I then rerun the MLS# to get a full copy of the listing and it's actually a contract sale (as of yesterday). The list price is $319,000. The sales price last October was $320,000. At the time it had a real funky interior paint job (i mean really bad). Now the agent comments state remodeled with "warm interior paint colors and new carpet." Yes, some of the paint looks great but the carpet looks the same (I assume they replaced the "kids" room carpet which was bad.
On the market 103 days in a 130-180 day market.
Does this calculation hold water:
List price $319,000
Sales commision 6% - $19,000
Money in (paint/carpet) -$5,000
Net to seller $295,000
Oct Purchase price $320,000
June sale net $295,000
295/320 = 0.92 or 8% decline
Should I change my older sale comp adjustments to 8%.
The listing agents assistant just called while I was typing this post. He says the sales price is to be $325,000 and it's a sort of lease option with a 12 month escrow.
Now what?