SP / LP Ratio

[John Wilson]

In the NIMLS you can run a nice Market Statistics report that will give you the SP/LP ratio based on user defined criteria for a market area.

Let's say a SP/LP comes out to 95%. Is it calculating from the final listing price or original listing price??

 

[VegasWayne]

Varies by system, some do it one way some the other.

 

[Lee Lansford]

In the NIMLS you can run a nice Market Statistics report that will give you the SP/LP ratio based on user defined criteria for a market area.

Let's say a SP/LP comes out to 95%. Is it calculating from the final listing price or original listing price??

List price at the time of sale.

By the way, I believe that it is now "compassMLS".

 

[John Wilson]

List price at the time of sale.

By the way, I believe that it is now "compassMLS".

Right, it's actually "ConnectMLS" today.

I just did a broad based search of 4 bedroom sales since 12/01/08 in Barrington. It spits out 93% SP/LP.

One in particualr was listed for a total of 415 days starting at $1.3 mil. Last listing price was $900k and sold for $850k or 94% SP/LP. In reality its 65% from the original listing price.

Since it is based on listing price at time of sale is this ratio really providing any useful data?

 

[Lee Lansford]

...
Since it is based on listing price at time of sale is this ratio really providing any useful data?

In conjuction with other market data, yes.

As I search data over various periods, I generally see a declining trend in the relationship. I suppose that if we were to look at the % at any single point in time and had nothing to compare it to, it would have little meaning.

 

[John Wilson]

In conjuction with other market data, yes.

As I search data over various periods, I generally see a declining trend in the relationship. I suppose that if we were to look at the % at any single point in time and had nothing to compare it to, it would have little meaning.

Calculating from original listing prices would remove the "point in time" component and really provide the big picture.

I too see trends over time but typically the listing prices drop before the ratio has a chance to be impacted.

I can't remember the last time I saw a ratio outside a range of 90% to 96%

 

[Howard Klahr]

Just remember the 1004MC form is requesting the List Price / Sale Price ratio NOT Sale Price / List Price ratio.

 

[timd354]

Right, it's actually "ConnectMLS" today.

I just did a broad based search of 4 bedroom sales since 12/01/08 in Barrington. It spits out 93% SP/LP.

One in particualr was listed for a total of 415 days starting at $1.3 mil. Last listing price was $900k and sold for $850k or 94% SP/LP. In reality its 65% from the original listing price.

Since it is based on listing price at time of sale is this ratio really providing any useful data?

Obviously, a SP/LP ratio figured in that manner is pretty useless for any meaningful analysis.

 

[SmilingDog]

The whole 1004MC is useless... in fact most of what we do is useless.

 

[John Wilson]

Just remember the 1004MC form is requesting the List Price / Sale Price ratio NOT Sale Price / List Price ratio.

Right, it's written as "List-to-Sale Price Ratio" but Sales price is always the numerator or "SP/LP" otherwise the ratio would be over 100%.