Sales Price to List Price Ratio

[CANative]

Using a SP:LP adjustment is nothing more than making a guess based on statical data,

No it's not! lol... At least I didn't use ALL CAPS.

It's presenting the competing properties, adjusted for physical and locational characteristics and then further adjusted to reflect average or typical errors in setting list prices. ®ealtors are just guessing, or succumbing to seller demands, as to the listing price.

Throw out the obvious outliers, and adjust the competitively priced properties. It's not necessary and we can come up with a good value but there's nothing intrinsically wrong with fine tuning the analysis and presentation.

If you present listing comps with adjustments for differences in relevant features but don't make an adjustment for Sp/Lp errors present in the market then you're not telling the client the entire story.

 

[Mr Rex]

No it's not! lol... At least I didn't use ALL CAPS.

It's presenting the competing properties, adjusted for physical and locational characteristics and then further adjusted to reflect average or typical errors in setting list prices. ®ealtors are just guessing, or succumbing to seller demands, as to the listing price.

Throw out the obvious outliers, and adjust the competitively priced properties. It's not necessary and we can come up with a good value but there's nothing intrinsically wrong with fine tuning the analysis and presentation.

If you present listing comps with adjustments for differences in relevant features but don't make an adjustment for Sp/Lp errors present in the market then you're not telling the client the entire story.

Can you say "misleading"?

 

[LI-Appr]

Ok I will catch flax for this but let it come. The whole 1004MC thing is just like HVCC and AMC,s. It was designed (not by appraisers} but by Frick and Frack, MBA members. Now ask yourself why? Its intended use is to define markets as declining. Hence the lender F & F get to charge points. They also get to redline neighborhoods without having to use demographics. Now if you don't belive this, the check is in the mail and your mouth is safe. Mike again is right. Listings mean %hit. I can list a property for whatever price I want. I have seen listing values manipulated for short sales. lately almost every day.

 

[Mr Rex]

And you always did a great job relaying the local market conditions in your report..... The 03/05 forms came out at the peak, with 2 lines for Market Conditions. Did you elaborate beyond those 2 lines when your market wasn't cookie cutter? If the majority of reports crossing the Fat girls desk had adequate data, as so many claim, then there would be no need for the additional form. I have a review on my desk right now. The Market Conditions comments are (I quote): "Market conditions are slow due to the current economic conditions." Similar verbiage on the MC, claims no effect from REOs, but when I run a search, all of the comps are REOs. Too many "easy money" appraisers and too few real ones IMHO.

 

[LI-Appr]

Just because you review some garbage reports, doesn't mean all appraiser are garbage Rex.

 

[John Hassler]

Umm, I analyze the data? Don't you?

I think you've hit the nail on the head. It appears most are calculating a statistical SP:LP without analyzing the validity of its application as well as the consequence should that mathematical guess prove to be incorrect for the individual comparable should the listing eventually sell.

 

[LI-Appr]

Allways analyze data but analyzing meaningless data to appease the Lenders thirst for statistics, is just that. Meaningless. Were the 1004MC ask for "comparable Listings" and you are relying on MLS to define that. Just get a BPO! Develop your own opinion and some reviewer will kick it back because it dose not jive with the 1004MC numbers.

 

[Mr Rex]

Be afraid, be very afraid of listings....











Boo!

 

[LI-Appr]

Rex on that we agree saw way to many that were intended to manipulate the value of the subject. Followed by bogus sale of the subject. Then another listing and sale. All by the same RE agent. mortgage fraud is rampant.

 

[LI-Appr]

Not to mention those listing that are ment to get the lender to sell way short after foreclosure. Went to one house that was listed for 3 months well below (drastically below MV ) Asked the owner how many people had viewed it ? She said in broken english "Only2" Asked her where she was moving to? She said "not moving"