Sales Price to List Price Ratio

[Truett Neathery]

"Past performance does not guarantee future value", a statement mandated for stock brokers ads. Also applies to RE.

 

[John Hassler]

Yes you did - partially. Kindly address the SOW requirements for the mortgage? / frt? assignment "this week" on a 1004_05 in compliance with Fannie Guidelines? Did the report including Active Listings? How were they addressed?

Answering questions appears to be a one way street with you and Rex.

 

[Mr Rex]

So what's your question?

 

[John Hassler]

So what's your question?

More sarcasm? :new_smile-l:
Last paragraph post #25, and post #31, if not.

 

[TJSum]

which of the four are the most similar with the most recent List Dates? Which of the four listings report either no adjustments or the fewest adjustments to OLP? Which of the four shouldnt be used due to list date aging and/or mutiple downward adjustments on current listing OR had a prior listing? Why not use all 4 listings?

That is my point, it is all about choosing the proper listings, not assigning an average ratio to any old listing and calling it a day.

Have many of you have orderly markets where the most of the listings follow the "average". Most markets have a very wide spread to come up with the average ratio, so the "typical" result does not apply.

While we are asking questions, no one has stated why there is a need to equate listings with sales with a pretend sales price? The only reason I can see is so that the form monkeys at the AMC can go down their checklist and cross this one off as a yes, that the adjusted values all line up with each other. Never mind that some are listings and others are sales that should be telling their own separate story.

 

[Mr Rex]

As I mentioned before Mr H, every area of the country doesn't have the wild mood swings of the Cali market, so yes I do have a tighter range of LP/SP to work with. Often times I will notice an outlier or 3-5 in the data pool, and I either discard them as anomolies, or call one of the RE agents involved in the transaction to inquire why these sales fell outside the statistical norm. One last week had a few anomolies, 1 sold way below market and 30% below list, a death in the family, 2nd home, the widow dumped it. One of the comparable listings I pulled was significantly overpriced. Called the agent, and the home was overbuilt with interior materials not suitable for the market etc. Another one of the closed sales sold significantly below list, the couple was originally from Arizona, moved here to be near family and didn't like the humidity of NC's summers, so they dumped the house etc etc. These 3 were all in the research of 1 report, but by asking a few questions, I was able to develop a more clear understanding of the LP/SP ratio in the subjects comparable pool and make an appropriate LP/SP ratio.

Oh yeah, I forgot, I use the LP/SP ratio from the most recent Listing, it helps tighten the LP/SP ratio.

 

[Metamorphic]

The whole comping of listings just shows how ignorant the the people that set these standards up are.

It would be far more instructive to just say. "Provide a table of with at least 20 current active listings surrounding the subject based on a radius search. Do not filter the results of the search. Expand the radius of the search as necessary to find at least 20 current active listings. The table should at minimum show list price, DOM, SF, year built, AC of SF, address, REO/Short Status (if available in MLS)"

With that data, any reviewer with more than a couple brain cells to rub together should be able to see of the OMV is grossly over the pricing of the available inventory, which is all you're realistically going to get from an analysis of listings.

 

[TJSum]

The whole comping of listings just shows how ignorant the the people that set these standards up are.

It would be far more instructive to just say. "Provide a table of with at least 20 current active listings surrounding the subject based on a radius search. Do not filter the results of the search. Expand the radius of the search as necessary to find at least 20 current active listings. The table should at minimum show list price, DOM, SF, year built, AC of SF, address, REO/Short Status (if available in MLS)"

With that data, any reviewer with more than a couple brain cells to rub together should be able to see of the OMV is grossly over the pricing of the available inventory, which is all you're realistically going to get from an analysis of listings.

I think that is what they tried to do with the 1004mc. They need to go back to the drawing board.

 

[John Hassler]

As I mentioned before Mr H, every area of the country doesn't have the wild mood swings of the Cali market, so yes I do have a tighter range of LP/SP to work with. Often times I will notice an outlier or 3-5 in the data pool, and I either discard them as anomolies, or call one of the RE agents involved in the transaction to inquire why these sales fell outside the statistical norm. One last week had a few anomolies, 1 sold way below market and 30% below list, a death in the family, 2nd home, the widow dumped it. One of the comparable listings I pulled was significantly overpriced. Called the agent, and the home was overbuilt with interior materials not suitable for the market etc. Another one of the closed sales sold significantly below list, the couple was originally from Arizona, moved here to be near family and didn't like the humidity of NC's summers, so they dumped the house etc etc. These 3 were all in the research of 1 report, but by asking a few questions, I was able to develop a more clear understanding of the LP/SP ratio in the subjects comparable pool and make an appropriate LP/SP ratio.

Oh yeah, I forgot, I use the LP/SP ratio from the most recent Listing, it helps tighten the LP/SP ratio.

Thanks Rex!

Since you use last listing price in the development of your SP:LP it would only be valid to apply it to the last listing price of a listing. How can you know if it's the last listing price or if there will be subsequent price changes? What if most properties have price changes before they sell yet your listing comp has not had a change in price?

Do you make an extraordinary assumption that the current listing price is the last listing price or do you just sweep this under the rug without comment and hope no one is paying attention?


Using a SP:LP adjustment is nothing more than making a guess based on statical data, data which has potential to be grossly inaccurate most of the time. The confidence level may be such that you find the conclusions to be credible however I do not at this time.

 

[Mr Rex]

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