Sales to list Price % adjustment - revision question

[Chet]

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.

 

[Mike Ault]

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.

A Sale to List Price % Adjustment is not the same thing as a date of sale/time adjustment. Two different metrics being measured there, and I would tell them to clarify what they wanted. Do they expect to see a 3.32% list to sale percentage adjustment applied to active listings on the grid or do they want you to analyze and apply a market change adjustment on the grid reflecting appreciation/depreciation in the market segment you are analyzing?

 

[J Grant]

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.

typically we adjust the sale to list price exactly as what the data shows - avg of 96.68 % I would apply a 3% rounded adjustment down and explain why .

 

[TerryRohrer]

They clearly dont understand there are two different concepts there. Usually, only in relocation appraisals to ERC specs are forecasting adjustments contemplated.No market conditions adjustments are warranted in your example.

I don't make any adjustments for Sp/Lp ratios. If you single-mindedly focus on the average, you can mislead yourself into believing it is meaningful. However, if you look at the data, individual ratios are all over the map and such predictions are meaningless and speculative.

 

[Chet]

A Sale to List Price % Adjustment is not the same thing as a date of sale/time adjustment. Two different metrics being measured there, and I would tell them to clarify what they wanted. Do they expect to see a 3.32% list to sale percentage adjustment applied to active listings on the grid or do they want you to analyze and apply a market change adjustment on the grid reflecting appreciation/depreciation in the market segment you are analyzing?

Thanks for replying. Yeah I am sure they expect a 3.32% adjustment. I just want to make a comment on not using the adjustment and put it to bed.

 

[Dublin ohio]

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.

How many data points on your 1004MC. Within the last 4 years. I haven't had enough truly comparable sales for most of my reports to provide meaningful results for the 1004MC

 

[J Grant]

Thanks for replying. Yeah I am sure they expect a 3.32% adjustment. I just want to make a comment on not using the adjustment and put it to bed.

Just apply the adjustment and say it is a recent trend noted and therefore added to the grid, and imo don't comment on why you made none since anything you say will make it worse ).

Because if you truly believe there was no adjustment and listings sell at 100 of the sale price then stick to that and do not make an adjustment of 3% or 3.32 %.

 

[Dublin ohio]

Yeah I am sure they expect a 3.32% adjustment. I just want to make a comment on not using the adjustment and put it to bed.

What was your commentary in the 1004MC. That is where you should have addressed it and repeat it in you sales comparison comments

 

[Chet]

They clearly dont understand there are two different concepts there. Usually, only in relocation appraisals to ERC specs are forecasting adjustments contemplated.No market conditions adjustments are warranted in your example.

I don't make any adjustments for Sp/Lp ratios. If you single-mindedly focus on the average, you can mislead yourself into believing it is meaningful. However, if you look at the data, individual ratios are all over the map and such predictions are meaningless and speculative.

How many data points on your 1004MC. Within the last 4 years. I haven't had enough truly comparable sales for most of my reports to provide meaningful results for the 1004MC

130 sales within 2 miles over the past 12 months. I live in Atlanta so typically there a good bit of sales even over the past few years.

 

[George Hatch]

They aren't asking for a time adjustment. They're asking for the adjustment to the actives for their status. Apparently the median sale is going off at 3+% less than the list, so that justifies applying a -3+% to the actives to indicate to what we can expect them to close at. If they close at all.