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[Mike Ault]

And yet your entire argument is about what you find meaningful and you appear to be chagrined that all don't kiss your feet and fawn over your great wisdom and suggestion of a novel approach. This thread is the first time I have ever seen or heard of your position in the 17 year existence of the form. It seems peer support for your personal preference is lacking.

And while you're at it, why don't you ask DW what he thinks about you just "deciding on your own" to expand your neighborhood until to you come up with a sufficient pool of properties to analyze on your 1004MC?

 

[Overimprovement]

The market in many areas consists of how much people can borrow. A Q5 shack that's twice the size of a Q3 dwelling might appeal to the same pool of buyers because they are limited by purchasing price, not amenities. Price is the primary influence when you're talking about appeal within certain market segments.

Sorry, I disagree. The idea of a COMPARABLE property is the economic concept of substitution. Are you gonna put that Q5 shack in your sales comp grid? If not, then it has no right to be in your listing search either.

 

[Mike Ault]

Sorry, I disagree. The idea of a COMPARABLE property is the economic concept of substitution. Are you gonna put that Q5 shack in your sales comp grid? If not, then it has no right to be in your listing search either.

You must not work in many small towns. The concept of "comparability" varies with inventory and sales activity.

 

[Dublin ohio]

The market in many areas consists of how much people can borrow. A Q5 shack that's twice the size of a Q3 dwelling might appeal to the same pool of buyers because they are limited by purchasing price, not amenities. Price is the primary influence when you're talking about appeal within certain market segments.

Of course price is important to a buyer. But we do not appraise buyers. We appraise properties. Would you compare a 3000 sf Q5 shack to a 1500 sf Q3? If I am shopping for a new car between 20K and 25K. I am not looking at used cars in the same price range. Since I am looking for a new car. Now if I can't find anything new in that price range. I might look at used cars. But they wont be the same as the new car.

 

[Overimprovement]

You must not work in many small towns. The concept of "comparability" varies with inventory and sales activity.

That would be a wrong assumption.

 

[Dublin ohio]

You must not work in many small towns. The concept of "comparability" varies with inventory and sales activity.

Which does not change your subject property. If you have a 2000 sf colonial and all you have is 1000 sf ranch sales. Do you compare that 2000 sf colonial to the 1000 sf ranches.

 

[Dublin ohio]

Mine does as well as long as there are results to report. If I search from $100,000-$300,000 and come up with two sales or listings ranging from $105,000-$110,000 those are the figures that are reported at the top of the page

Why?

 

[Mike Ault]

Of course price is important to a buyer. But we do not appraise buyers. We appraise properties. Would you compare a 3000 sf Q5 shack to a 1500 sf Q3? If I am shopping for a new car between 20K and 25K. I am not looking at used cars in the same price range. Since I am looking for a new car. Now if I can't find anything new in that price range. I might look at used cars. But they wont be the same as the new car.

I know we are not appraising buyers. We are appraising motivations. In many subsistence level neighborhoods the primary motivation is price. In many neighborhoods buyers will not purchase if the house payment is over $1500 a month. The fact that $1500 a month will purchase a Q5 shack that's twice the size of a Q3 brick home is secondary, the primary driver is payment. Both of those similarly priced homes should be included in your comparable data pool in those type of neighborhoods because they both appeal to the same market segment.

 

[Mike Ault]

Why?

Because that is the truth. I searched from $100,000-$300,000 and found two active listings, one at $105,000 and the other at $110,000. If I had no active listings what good does it tell the reader of my report to indicate that I searched from $0-$0. That conveys no useful information to anybody.

 

[TerryRohrer]

And while you're at it, why don't you ask DW what he thinks about you just "deciding on your own" to expand your neighborhood until to you come up with a sufficient pool of properties to analyze on your 1004MC?

Sorry, your talking about Fernando. I did not say I expanded my criteria or neighborhood. I determine the subject neighborhood, and my search criteria for comparable listings of all statuses and report the results at the top of page 2 and on the 1004MC

If sufficient sales are not identified in that criteria to complete the valuation to my satisfaction, I expand the area of consideration to competing market areas and/or relax the criteria used to identify more data for direct comparison to the subject. Then explain that, for example, a sale of $400,000 in the grid that is clearly not in a set of comparables with prices between $325,000 and $375,000 that were reported at the top of page 2 and on the 1004MC is the result of those expanded searches.