Most weight to pending sales!

[murray stroupe]

Trends ;wise & otherwise

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Like your picture, it says ''get real'' Ron.Really, I am not an appraiser , nor do i play one on house fliper TV.

Prpbably will consider your industry rule of 12 showings/no offer as some sort of change may be necessary;
especially since in the rural markets i watch & occasionaly buy/sell, hardly ever see as many as 12 showings to make a sale.

 

[Joyce Potts]

Hold on, writing down that industry standard I've never heard of before.

 

[SoCal Appraiser]

I have noticed a trend. The posters that most vehemently fight to not consider listings or pendings seem to come from California and Florida, 2 of the areas of the country that are widely recognized as declining. Speaks volumes about how those markets got to their current condition.

I have advocated using pendings....

 

[Joyce Potts]

How many advocated using listings, pendings, expired or withdrawns prior to the current real estate 'crash'?

 

[Rudy Canoza]

How many advocated using listings, pendings, expired or withdrawns prior to the current real estate 'crash'?

Raises hand...

As a matter of fact, I have always gridded at least 2 listings/pendings since Joyce was in diapers...heh.

It's a good snapshot of the top or bottom of a given market if used correctly and wisely...

 

[Blue1]

One method I use:

Calculate the list-to-sale-price ratio of each of your comparable sales. Reconcile them to a single ratio. Run the stats of all your proposed comparable sales and get an average list to sale price ratio.

Now reconcile the (already reconciled list to sale price ratio) with the average from the results of your statistical research. Once you are satisified then apply that same ratio to your pending/active sales. The active/pending sales are now 'conditioned' with a list to sale price ratio and they could (depending on your Market) likely support your comparable sales thereby precluding your having to put the most weight on a pending or active listing.

 

[moh malekpour]

In California, there is no shortage of listings. There might be shortage of recent sales but definitely not listings. In most neighborhoods, number of listings are sometimes 20% more than the number of recent sales. You may have 10 recent sales in a given neighborhood but you have 200 active listings in the same market. At least 50% of current listings are over priced. I call them wishfull listings. They are never going to sell at their current listing prices. If appraiser uses 1,2, 3 or even 10 of those over priced listings to support an inflated value, that would be a misleading attempt.
The pending sale, the listing with a back up offer or the listing with the listing price equal or below the most recent sale in the market should be used not just any listing.

 

[Joyce Potts]

Raises hand...

As a matter of fact, I have always gridded at least 2 listings/pendings since Joyce was in diapers...heh.

It's a good snapshot of the top or bottom of a given market if used correctly and wisely...

You can't be 100 years old.