Most weight to pending sales!

[444nutman]

If we're making changing market condition adjustments based on listings and pendings and otherwise using pending sales to fine tune not-so-great sales comps aren't we really "weighting" pending sales... just not saying it?

exactly! Couldn't said it better than myself MR. Boyd

 

[Virgil Brown]

Just looked at a sale that was 1287 days on market, had been reduced 12 times. How could you let that influence your woork prior to closing. But just think in this market it did sell when priced right.

 

[John LaBelle]

In my area, most agents won't disclose the contract price so I seldom include pending sales in my reports (I only use them if I can verify the contract price). Some owners are still shooting for the moon, so actives are usually worthless too.

 

[BENNY JEFFUS]

If 10 sales closed last month at $120,000 and now there are 10 listings at $100,000, what is the subject worth?

 

[Amy Perkins]

What if nothing sold in a remote area, then there are two pending for 100K less with no significant differences? You may have to make an exception and put more weight on your pending sales.

 

[SoCal Appraiser]

When analyzing your appraisal data does anyone give the most weight to pending sales and/or active listings? Do pending sales and/or active listings better reflect the current market than closed sales that may have been closed 3-6 months earlier? In a declining market you your opinion of value will be below the latest closed sale.

On active listings do you call the agent to see how many showings? According to industry standards suggest that if the agent haven't received an offer after 8-12 shownings, a price adjustment is probably necessary. Do you consider that?

If you do use active listings in your appraisal report to support your opinion of value, how do you adjustment in your grid to reflect active listings? Which price differential do you use for you active listings: sold to list, net sold to list, sold to original, or net sold to original?

I try and call the listing agents for the pending sales and ask them a few questions about the sale (expected time of closing, sale price, NRCC). To me, they are better comps in a rapidly changing market. FYI - some agents will not share this info with you, but in my experience, most of them will try to be helpful.

 

[Elliott]

You could ask yourself, "How would an AVM or Zaio handle
this situation?" (since they are the recognized better
solutions to the housing/mortgage mess).

 

[Kali the Boston Terrier]

Its the principle of substitution...stupid what would a similar buyer purchase if the property were available as of the effective date...so look at the comparables, listings and pendings whichever one fits the principle best go with it.

 

[redfish]

Analysis of expired and withdrawn listinngs can also help in determining what a reasonable substitute property CANT or WONT sell for. Inclusion in the report doesn't make sense and would take to much narrative to explain, but pertinent adresses could be retained in the work file. In some michigan submarkets, its easier to prove what a property isn't worth.

 

[Thomas N. Morgan]

If you know the contract price of a pending sale, yes, it's a significant piece of information. Where I work, or "in my market" as so many here say, we know there's a sale pending and what the listing price was, but that's all. We tell about the pending sales, but we certainly don't grid and adjust them.