Sales Price to List Price Ratio

[John Hassler]

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.

Thanks for not using all caps! Being capped on my Rex and the Irishman is enough for one thread. :new_smile-l:

Looks like we may just have to agree on disagreeing. You see me as not telling the whole story while I see you as telling a story which has some credibility issues.


BTW are you ever going to come down for an REAA meeting?

 

[Mike Garrett RAA]

Isn't the appraised value just a guess anyway?

 

[TJSum]

Looks like we may just have to agree on disagreeing. You see me as not telling the whole story while I see you as telling a story which has some credibility issues.

That pretty much says it all. One side feels the whole story is told when listings are present as listings, as is. What it is, is what it is.

Others feel they need to be equated to sales in some fashion with an adjustment for what they think they will sell for, it is not what it is, it is what we think it should or wish it to be.

We can agree to disagree, I think most taking part in this debate produce credible reports whatever side they fall on. The real misleading that is going on is when skippy goes out there, cherry picks higher priced listings, applies the good ole LP/SP ratio adjustment and everyone is happy as the deal goes through. It is just yet another in a long line of fixes in this profession that does not fix a thing.

 

[David S. Roberson]

For this reason, it is not adjusted for on an "As Is" appraisal report."[/B]

No one else wonders what this means? Would the OP adjust for ratios on a "subject to" appraisal, but not an "as-is"? Was that the meaning of this statement?

 

[Mike Kennedy]

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

http://appraisersforum.com/showpost.php?p=1856792&postcount=59

When you finally answer mine and I'll answer yours. :icon_mrgreen:

 

[John Hassler]

For the record, my Answer to Ask ratio is at 75% while yours is at 0%.


BTW I'll be out of the office today looking at cars I will likely never own so no more posts from me on this topic until tomorrow.

 

[CANative]

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.

A mathematical guess by an appraiser is an opinion and opinions cannot be proven wrong. They can only be proven reasonable or not reasonable, supported or not supported. What happens after the effective date of value is not relevant.

Have fun looking at cars you'll never own. I have a 4-runner with a lift kit and some nice wheels. You can own that for three grand if you want.