Too Much for the Money?

[Farm Gal]

listings do not indicate the market value of the subject, but do indicate the upper limit on the indicated range of value.

Roger: I tend to convey that the listings indicate the maximum POTENTIAL value range, and toss in a comment about list to sale values in the subject submarket.... let them do the math or draw assumtions. I also state firmly that the listings were NOT given any/much weight in arriving at the value conclusion: reasons depend on market condition but no thanks depending on listing for actual value!

Sometimes listings affect my conclusion as based on the sales up or down a bit but are never IN MY AREA to be depended on for actual value.

Hot markets have a different set of needs.

 

[The Bob]

Doug,

Look at it this way. You already have data on market time and list/sales ratio. Although it may be difficult to find this data for a particular FSBO, why can't you say something to the effect..."According to MLS and other market data (newspaper ads, interviews with sellers etc...) the average marketing time is xx days. The average list to sales ratio is xx%" I have even adjusted for this. For example if homes generally sell for 90-95% of list price, I will make a downward adjustment to the listings price of 5-10% under "Date of Sale/Time" Just explain your reasoning. You are probably dealing with the person that just orders the appraisal. If you ask them if its OK to deviate from their guidelines, of course they will say no. Its OK to try to satisfy their in house, or administrative, guildelines, but you have the final say. You're the expert. Sometimes you have to politley remind them who the appraiser is.

 

[Mike Garrett RAA]

you can always ask for more money. these are fun to do and good experience for a newer appraiser. Just consider it as 6 comps with 3 being listings. Remember to adjust the listings for the %age the sales price is of the list price.

concerning MLS, it is usually the easiest to use when finding comps. Data is usually verifiable and you have two sources readily. FSBOs are difficult at best BECAUSE the seller has moved away and the buyer will lie through their teeth about what they paid for the property.

Good luck, I wouldnt do an REO for less than 1.5 times the normal appraisal fee.