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Lack Of Active Pendings

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Metroappr

Junior Member
Joined
Jan 20, 2005
Professional Status
Licensed Appraiser
State
Michigan
Hi, I am doing a condo purchase with no active or pending listings within a reasonable proximity search. Is it ever acceptable to use the subject as an active listing? I have not had this yet. I have always been able to find something. Your thoughts are appreciated.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
this is addressed a few threads down, "can I use subject as a listing"
 

hastalavista

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Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
Hi, I am doing a condo purchase with no active or pending listings within a reasonable proximity search. Is it ever acceptable to use the subject as an active listing? I have not had this yet. I have always been able to find something. Your thoughts are appreciated.
Is the use of a pending part of the client's assignment conditions?

Most client's I know that have such a requirement also have a provision to explain why it is not possible to provide any relevant actives/pendings: does this client not provide that as an option?

I have always been able to find something.
I hear you. I'm sure when you've had to find "something" what you found is less than ideal and you may have felt like you were cramming a square-peg into a round hole. I'd avoid doing this like the plague, or if I was compelled to do it, I'd probably spend more time describing why this data point was meaningless in the analysis but is only included as it is part of the assignment-conditions and that I gave it was given no consideration in the final value reconciliation: it is included due to the client's requirements only and its inclusion or exclusion doesn't impact the valuation analysis.

But, back to my first question: Why is including a pending sale a critical issue with the appraisal?
 

Michigan CG

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Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
Hi, I am doing a condo purchase with no active or pending listings within a reasonable proximity search.

Did you take that assignment in Monroe in that small condo development?
 

bnmappraisal

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Gold Supporting Member
Joined
Nov 9, 2011
Professional Status
Certified Residential Appraiser
State
Florida
Is the use of a pending part of the client's assignment conditions?

Most client's I know that have such a requirement also have a provision to explain why it is not possible to provide any relevant actives/pendings: does this client not provide that as an option?
I agree with Denis. Most of my clients with that requirement have the caveat to just explain if none are available at this time

Personally I would just explain rather than use the subject
 

TRESinc

Elite Member
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Dec 1, 2011
Professional Status
Licensed Appraiser
State
Ohio
I agree with Denis. Most of my clients with that requirement have the caveat to just explain if none are available at this time

Personally I would just explain rather than use the subject


yep, same here. i have one client who has a condition that if the subject is over 1.0ac it must be bracketed, however if that is not possible then i just have to explain why.
 

ZZGAMAZZ

Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
A more meaningful question IMNSHO is "Why is the volume of listings so relatively low virtually everywhere," when prices have escalated sky high, presuming that a majority of property owners are wary of a pending major correction, having experienced one ten years ago--after culling former, recent listings that were withdrawn or cancelled, of course. I personally find the task to determine the motivations of sellers and buyers to be daunting, in the context of establish trends, let alone the motivations of those who choose not to participate, especially sellers including the mass of investors who purportedly gobbled up so much of the distressed market 9 - 10 years ago, who must have exceeded their wildest ROI expectations by now.
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
You can't provide something that is not available !! i would simply state there are no active or pending sales in the subjects market area. I have been running into this situation in the last few months especially on condos. Prices have gone up so much sellers can't afford to move to another location unless it's to a different state and the buyers can't afford $500,000 for a condo that has $400.00 a month HOA dues and $500 in property taxes.
 
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