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Stable or decline?

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appauled

Thread Starter
Sophomore Member
Joined
Sep 24, 2007
Professional Status
Certified Residential Appraiser
State
Florida
Im doing an appraisal on a condo unit where the lenders is asking for closed comps and active listing. Its not an REO, it is a refi appraisal. so this is the situation i provided 4 closed comps 4 active listings. the comps range 80 to 99 i appraised the unit at (89). the actives are 86-95k after list to price ratio, prior to the ratio they where at 89-105K... i marked it stable, based on my finding on MLS and closed sales.two comps closed within six months and two within 3 months, two comparables are within the subj development and two are in a competing project. the reviewer states that this a text book example of a declining market and slighty overstating my value. but what i dont understand is how, if the comps support my value of 89, the actives support it, although im not placing any weight on the actives , just providing them because lenders wants them.

so my question is what should it be considered stable or decline. :shrug:

thanks
 

Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
ap,

Without more data it's hard to say.

If the reviewer thinks it is a "textbook" example, they are either seeing a difference between your older comps and your newer comps or they are mistaking some data piece for something it is not (like maybe the SP/LP adjustment you made, for example.)

Can you explain their reason for saying "textbook example"?
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
Im doing an appraisal on a condo unit where the lenders is asking for closed comps and active listing. Its not an REO, it is a refi appraisal. so this is the situation i provided 4 closed comps 4 active listings. the comps range 80 to 99 i appraised the unit at (89). the actives are 86-95k after list to price ratio, prior to the ratio they where at 89-105K... i marked it stable, based on my finding on MLS and closed sales.two comps closed within six months and two within 3 months, two comparables are within the subj development and two are in a competing project. the reviewer states that this a text book example of a declining market and slighty overstating my value. but what i dont understand is how, if the comps support my value of 89, the actives support it, although im not placing any weight on the actives , just providing them because lenders wants them.

so my question is what should it be considered stable or decline. :shrug:

thanks
I believe you need to present more data and analysis to support your opinion of stable market. You could go back in time, say a year or two, for similar closed sales and 1) graph the price/sf with a regression line (poly or linear) to illustrate the market trend over that time frame 2) graph the median sales price along with sales volume by calendar quarter over that time frame. Look at the exposure time by quarter. Now look at the total number of similar listings and their marketing time. What does that suggest?
 

Mztk1

Senior Member
Joined
Dec 3, 2006
Professional Status
Certified Residential Appraiser
State
Florida
You're in Florida...It's a condo...That says it all.

But seriously, there is definately something missing from what you have said.
 
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