Sales to list Price % adjustment - revision question

[CGinMN]

Adjusting based on the average list to sale ratio is useless when the range in the segment is +/-10%. Even if everything previously sold at 96.5% of OLP, the listings in your report could be overpriced or underpriced and the ratio would be thowing the final adjusted sale price off. Better to find out the contract price and adjust based on that. If there isn’t one, leave it alone and instead analyze in the comments. Part of that analysis might be a discussion of list to sale price ratios, days on market, the specific listing history of the comp, etc…

 

[Surf Cat]

I always try to input pending sales as my listings as, someone has made an offer and is moving forward. Also, when pending, I call the listing agent to see if it's below, at, or above LP. If no pending sales are available, of course you move to listings.

Depending on how you derived your list to sale price ratios, (1004MC or other market derived analysis) it would be clearly indicated. You then can enter your "negotiation allowance" to the listing(s) from the ranges and explain.

Careful not to have your listing after inputting the negotiation allowance, come in below your opinion of market value....or you're in for more stips.

 

[Tom D]

o wow, i must have stupid direct lenders. i have never done a listing time adjustment, and nobody has asked for one. now reading this. i have to excell graph listings to selling ratios to determine an average or median number to play with. never mind, i'll just ignore it like i have always. or maybe my no adjustment is saying sale list is sale price. yea, let's go with that thought.
but i do provide a list of the sales i looked at that has the list to sale ratios.
and if the reader is looking at the 1004mc to get that number, boy can it be skewed.

 

[J Grant]

I rarely use listings anymore on the grid.. Avoids the problem. I might comment on the inventory and typical DOM and if there are list-to-sell ratios and whether the trend id to reduce prices etc.

When I do use a listing, I usually apply the average list-to-sell ratio but comment the actual sale price can differ and the ratio is average. I almost never use an over priced listing, if I do Would comment that the price is above typical and either apply a bigger adjustment to it or let it stand but overall, just don't add it IMO it throws everything off and is an outlier, unless the trend is rapidly rising prices.

 

[Tom4value]

I have done plenty of time adjustments on sold comps over the years but never on a listing comp. I got a revision request and was wondering if someone could share any commentary for no adjustments.

6. Sale to List Price % Adjustment
The 1004MC reports that the current Sale to List Price ratio is 96.68%, however, no Date of Sale/Time adjustment has been applied to the active listing(s). Please address or provide commentary in support of the lack of adjustment.

Yeah, this correct. Adjust that amount and say that it is not weighted as much as the sales comps.
Average appraisers only look at previous sales. Good appraisers look ahead. Don’t get me wrong. Not including listing comps is a client stip so o I am not judging your work. Just saying they have a point.

 

[Cob]

Reminder Note for Y'all: I believe that Fannie recently expressed concern that appraisers are not making List to Sale adjustments on listings as appear warranted based on the mtarke (read: 1004MC) data. So ... you might want to consider making those adjustments in future reports.

What I have an issue with, is I'm pretty sure they, "expressed concern that appraisers are not making List to Sale adjustments on listings as appear warranted based on the market (read: 1004MC) data" ONLY when the sales price is BELOW what typical sales price is, in the past 2-3 years, in the Austin market, the list to sales price was commonly 110%-120%, do the expect upward adjustments as well when this happens?

 

[Cob]

The other issue I have is, what if you use a pending sale, adjust 3% down and then your pending sale closes for 100% of the list price, expecting appraisers to adjust an active property or pending sale, for what the other previous closed sales did, is somewhat unreliable, because EVERY sale and pending sale is different, you may adjust when it ends up not being needed, I prefer making adjustments on FACTS, not what "might" happen or what is basically an average list-to-sell ratio of a bunch of selected closed sales, as again, EVERY sale or pending sale is different.

 

[Fernando]

I always try to input pending sales as my listings as, someone has made an offer and is moving forward. Also, when pending, I call the listing agent to see if it's below, at, or above LP. If no pending sales are available, of course you move to listings.

Depending on how you derived your list to sale price ratios, (1004MC or other market derived analysis) it would be clearly indicated. You then can enter your "negotiation allowance" to the listing(s) from the ranges and explain.

Careful not to have your listing after inputting the negotiation allowance, come in below your opinion of market value....or you're in for more stips.

Never had a call out on sales/listing adjustment. WTF.
In my market, most listings are listed below market and let the bidding starts within a week or two on the market. Such easy work for listing agents.
If pending sale and you really need the adjustment, call the listing agent and sweet talk the agent in giving you the ratified price. I know that's hard for some arrogant forumites.