- Jan 14, 2002
- Professional Status
- Certified Residential Appraiser
Been experiencing a "hot" market in my area. Available inventory is extremely low causing prices to rise and market exporsure times to shorten. In this Market I am applying the principle of subsitution, that is, I am including active listings in all my reports. The question is, how much weight do you give them? In one area, listing prices exceed available sales by at least 10% and the typical listing to sale price ratio is 5%. Is it reasonable to include listing prices as the high end of prices in the area? Is it reasonable to place the most probable value (for the subject) above the comparable sale prices and slightly below the comparable listing prices? Any help would be much appreciated.