Most weight to pending sales!

[Wendy]

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.

NOT TRUE!!!!! I, for one, do not appreciate being painted with your broad brush.

 

[c w d]

The broad brush was not meant to cover all FL or CA appraisers. But there has been a trend of the folks that have complained the loudest since some lenders started asking for actives in declining markets. Just an anecdotal observation.

Do you even read what is said or just the items you can use to attack people?

Keep your observations to yourself. They are not appreciated. Try to contribute to the conversation. If you don't agree with my practices then state something compelling. Perhaps I'll reconsider. It's why I am here. Otherwise you're insulting people you don't even know.

Besides, I don't remember anyone asking you about your observations. Nor do I believe anyone gives a crap either.

 

[Mr Rex]

cwd, Where did I attack you? You are the one that has turned my comments and observation into some type of personal attack.:Eyecrazy:

 

[c w d]

cwd, Where did I attack you? You are the one that has turned my comments and observation into some type of personal attack.:Eyecrazy:

Rex, I'm not the only one that has a personal objection to that statement. Go back and re-read the posts. You'll find other Floridians that objected to it as well.

Whether you consider it a personal attack is moot. I did. The timing, positioning and direction of the statement was quite clear to me. It has every indication being as such.

I hope your appraisals are more carefully worded.

 

[Mr Rex]

Well, tough tea tay. If it strikes a nerve from me, I guess the national lenders should be ashamed for asking for consideration of current market conditions and indications of directions in value etc. Forgive me for my cynicism, its nothing personal.

 

[Joyce Potts]

The broad brush was not meant to cover all FL or CA appraisers. But there has been a trend of the folks that have complained the loudest since some lenders started asking for actives in declining markets. Just an anecdotal observation.

Hand me the brush.

FORM MONKEYS are not restricted to Florida and California.

 

[Joyce Potts]

Because it is not verifiable. If the bread winner got fired from his job the day before closing because the factory shut down, do you think they would still sign the loan docs? And, do you think that "the meeting of the minds" would still be meeting?

I rarely have verifiable information as to major sales concessions. Does that mean I overlook them? Or do I adjust for them and clearly explain where I got the information?

 

[Elliott]

Rex, Joyce,
Isn't it amazing that six months ago appraisers were howling
about using listings and pendings, and now they have become
the gold standard on which to base your value.

We live in interesting times.

 

[KD247]

When analyzing your appraisal data does anyone give the most weight to pending sales and/or active listings?

Each bit of data should be "weighted" based on its relevance, regardless of its transaction status.

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.

Asking prices set the ceiling on value, regardless of where it was previously. Pending sales show market trends by showing variable levels (mostly strong) of intent to consummate a transaction.

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?

It's hard to believe that 8-12 is the universal number, but it is critical to get a measure of exposure that can be compared to other listings.

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?

(How do I adjustment in my grid?) Asking prices set a logical upper limit for value. Throw in an adjustment for anticipated reductions in asking price and you usually end up diluting the precision of that upper limit.

Rex, Joyce,
Isn't it amazing that six months ago appraisers were howling
about using listings and pendings, and now they have become
the gold standard on which to base your value.
We live in interesting times.

Not that amazing; just hard to shift gears. Many appraisers are having a tough time trying to switch their bias from, "That's got to be too high" to "That's got to be too low." Good appraisal practice, including appropriate consideration of contracts and asking prices, works in good times and bad.

 

[Joyce Potts]

Rex, Joyce,
Isn't it amazing that six months ago appraisers were howling
about using listings and pendings, and now they have become
the gold standard on which to base your value.

We live in interesting times.

Astute observation.