Sales to list Price % adjustment - revision question

[J Grant]

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 %.

You have never made a list-to-sell adjustments in all these years, lol. Most appraisers do that i am aware of...( or I assumed the did ), but you didn't, and nobody cared until now.

Just say then that the list-to-sell ratios vary so you did not make one ( and then either apply the 3% list-to-sell ratio or don't do it. - whatever integrity is there for your reasoning -

 

[Dublin ohio]

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.

So was it a steady trend or just the last 3 month period

 

[George Hatch]

That's probably their hot button for the week. Next week it will be lot area adjustments. Or fireplace adjustments.

 

[alebrewer]

I'll often apply a list/sale adjustment when my closed sales are adjusting lower than the listings. This adjustment is reflective, not of the list/sale ratio derived in the market analysis, but rather the extent the active listing is overpriced given the consensus of the closed sales. The reason I do this is that most folks don't understand the difference in weighting between listings and sales and will point to the adjusted value of a listing to disagree with an appraised value.

 

[George Hatch]

I always track s/l ratios for the closed sales and consider active and recently expired listings in my analyses. If a listing was exposed for a lot longer than normal without selling then that gives me an idea of what the market DIDN'T think it was worth. If the closed sales are selling higher or lower than their list then that gives me the hint on how to handle the actives.

 

[NC Appraising]

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.

Food for thought:

1. How reliable is your 1004mc? Or are you using some BS software that fills out the 1004mc and then adds some BS canned statement? In 90% of my 1004MC, I put in a statement that says that due to the low amount of data, the 1004mc deemed not to be reliable (something like that). How does your software fill out the 1004 MC? First list price or last list price before the SP?

Depending on your above answer, the UW has all the right to ask the question that they did....

2. What is your current market like? I just finished one up where the list price was $760,000 and is under contract for $815,000. Comps were below list price, at list price and above list price (had to use current and dated comps) Adjusting the list price for the LP/SP could be mis-leading. If this is the case, you SHOULD have explained this.

3. What is your comps LP to SP? I admit that I do not list in my reports what the comps LP/SP is, but I should. This would help to show the UW what the market is doing and how the 1004mc data is not reliable.

4. My market is back to most homes selling at or above list price. Although most of the time the 1004MC still has a MEDIAN, LP SP as 99%.....
So, would the adjusted listings be adjusted below the adjusted closed comparable sales? Is that why you did not adjust them?????? If so, just explain.


5. DOM of the comps....DOM of the pending sales? DOM 1-6 day's? DOM 40-150 day's. Most of the time, if the DOM of pending listings are under 5 day's, it will sell at or above list price (supply is still low, demand is high and is priced correctly).


FWIW,

It seems like you did not explain what the current market is doing. UW's are not mind readers. Most cover 50 states, with 10,000 different market and market trends.....PAINT that picture.

 

[Alsie35]

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 market (read: 1004MC) data. So ... you might want to consider making those adjustments in future reports.

 

[NC Appraising]

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.

I was applying POSITIVE adjustments to my listings all of the time in +-2022..and to new construction pending listings. Never got any pushback.

 

[NC Appraising]

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 market (read: 1004MC) data. So ... you might want to consider making those adjustments in future reports.

Yep. Also from FHA.

op said: I have done plenty of time adjustments on sold comps over the years but never on a listing comp.

From FHA handbook:

For active listings or pending sales, the Appraiser must:• ensure they are market tested and have reasonable market exposure to avoid the use of overpriced properties as comparable properties;• use the actual contract purchase price, or, when not available, adjust comparable properties to reflect listing to sale price ratios;• include the original list price, any revised list prices, and calculate the total Days on Market (DOM). The Appraiser must provide an explanation for the DOM that does not approximate periods reported in the “Neighborhood” section of the appraisal reporting form;• reconcile the Adjusted Values of active listings or pending sales with the Adjusted Values of the settled sales provided; and• if the Adjusted Values of the settled comparable properties are higher than the Adjusted Values of the active listings or pending sales, determine if a Market Condition Adjustment is appropriate

 

[Mejappz]

I can’t believe we are still talking about the 1004MC. If you adjust your closed sales up or down as if they closed on your effective date their would be no need for this foolishness. Of course the stupid users would still ask for it. What a mess.