Pending Sales for REO Addendum

[Jaime G]

Hello everyone,

I was wondering if it is acceptable to use pending sales for the REO addendum, which asks for listings. The engagement letter doesn't address this issue. It's my opinion that the pending sales in the area are better comparables, but there are 1-2 adequate listings nearby as well. What are your opinions on this issue? Do you prefer pending sales over listings when appraising REO's? Thanks in advance.

 

[Carnivore]

I use all three; active, pending and expired when necessary.

 

[Caterina Platt]

Ditto, Carnivore.

Whatever point needs to be illustrated. If the market is flooded with pie in the sky list prices on lender owned units, then an expired, active and pending is ideal. You get to show what really is getting the activity, the competition, and the failed offering and discuss it all.

If offerings of similar 'bargain' properties are not currently available, show them everything you do have available and pending and discuss the likely market reaction to your hopefully well priced, percieved bargain for that investor/rehabber.

 

[Wendy]

I'll take a pending over a list any day. Most times the realtor will even be so kind as to give me the contract price or at least a % from list.

 

[Don Clark]

I'll take a pending over a list any day. Most times the realtor will even be so kind as to give me the contract price or at least a % from list.

Until a listing closes, it is still a listing.

 

[Wendy]

Until a listing closes, it is still a listing.

I know that - calling them pending vs. list is a convenience. Point is that a contracted or pending "listing" is better than a pie-in-the-sky listing.

 

[Don Clark]

I know that - calling them pending vs. list is a convenience. Point is that a contracted or pending "listing" is better than a pie-in-the-sky listing.

Not necessarily. It may still be pie in the sky. It could also be a listing where the agent does not know what they are doing. Like one I just appraised. Listed at $153,000 and all the closed sales were over $180,000.00 The agent works part time as an agent.

Reality may have not yet set in, even on a pending listing. Also, in some cases the agent does not report the pending sales price. That is true over 80% of the time in my market.

 

[Wendy]

Not necessarily. It may still be pie in the sky. It could also be a listing where the agent does not know what they are doing. Like one I just appraised. Listed at $153,000 and all the closed sales were over $180,000.00 The agent works part time as an agent.

Reality may have not yet set in, even on a pending listing. Also, in some cases the agent does not report the pending sales price. That is true over 80% of the time in my market.

.

Read my post - I call the listing agent and get information on the contract price. It ain't gold until it closes; but it is better than nothing.

As an aside - an amazing number of agents will freely give me the contract price. Always surprises me.

 

[Doug Wegener]

Pending

Hello everyone,

I was wondering if it is acceptable to use pending sales for the REO addendum, which asks for listings. The engagement letter doesn't address this issue. It's my opinion that the pending sales in the area are better comparables, but there are 1-2 adequate listings nearby as well. What are your opinions on this issue? Do you prefer pending sales over listings when appraising REO's? Thanks in advance.

Use the pending as a fourth comp. The REO addendum asks for listings..

 

[Mike Garrett RAA]

Don has it....it is still a listing until it's closed. I get into all kinds of trouble because I don't think listings mean much. Anyone can ask anything and some dumb REALTOR® will list it for that.