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What a neighborhood!

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Jeff Horton

Thread Starter
Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
In my area your neighborhood is usually the whole city. We don't typically have neighborhoods that vary. They are all typically very similar in price and you can take comps from most anywhere and compare them to an area several miles away. One of the quirks of a small town I guess.

I have an assignment in newish small development just on the outskirts of what I would call town. Outside the city limits but still considered (by locals) as part the area. Decided to check all the sale data for the Sub before I picked comps since I hadn't worked there before. Boy was I surprised!!

I have two new homes that have DOM of 530 and 869! No typo!! Realtor say there is nothing wrong with the homes. They just have not sold. Prices maybe a little high on one but not that high. Then I have sales of similar homes new and used (all less than 4 years old) with market times of 140-250 days. Thats probably normal for this area. The sales prices are just under these that haven't sold. So price doesn't seem to be the issue.

The more I dig into this the more I am confused. There are homes that didn't sale and I guess the owners just stayed there. Similar home sold in normal time periods. House across the street won't sale. No correlation I can see as to why any of them sells or doesn't sell. Styles are all similar. Ages are similar, nice area, just a little far out for most folks, so I expect longer sales times. The subv. is about 4 years old.

It was just a Mortgage Loan I could just comment on the long market times. But this is RELO and I just can't explain all this because I will be darned if I see a pattern!! m2:
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Were the homes listed in MLS prior to and during construction? Is the newer subdivision still kind of "barren" of life and landscaping? Since they're outside of the city limits do they have "city services" such as water and sewer at the same price as being in the city or does it cost more or are there any special assessments? Do school buses go there and is the school assignment for that location inferior to more urban neighborhoods?
 
Joined
Mar 30, 2004
Professional Status
Certified Residential Appraiser
State
Arkansas
I have two new homes that have DOM of 530 and 869! No typo!! Realtor say there is nothing wrong with the homes. They just have not sold. Prices maybe a little high on one but not that high. Then I have sales of similar homes new and used (all less than 4 years old) with market times of 140-250 days. Thats probably normal for this area. The sales prices are just under these that haven't sold. So price doesn't seem to be the issue.

I dealt with the same issue, and one of the realtors I trust had one that had the extend listing (541 days). I asked her why, and her comment just made to much sense.
FEAR.
When a HO see a home that that kind of listing history, the think something has to be wrong with it, and nothing can be done to convince them otherwise.
The long market time + the nightly "news" have almost stigmitized these homes.
In this case, the MLS rules are hurting the market because she can not re list the home under a new MLS number and the DOM shows up on the printout they have to give to HO.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Ask the Lsiting Agent for the names of a few Buyers Agents that have showed these houses. Ask them why their buyers went elsewhere.
 

Hamlet

Elite Member
Joined
Aug 14, 2006
Professional Status
Certified Residential Appraiser
State
Ohio
Hi Jeff,

In addition to what the others have said, did you notice in the listing history if they started out at a ridiculous price and adjusted down? Or if there is a seasonal market sometimes they list them too soon and it eats up the DOM. Sometimes that happens here. Also, is it the same builder that built the other houses? Sometimes an inferior builder will sneak some in and try to get the same price as the others.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
In this case, the MLS rules are hurting the market because she can not re list the home under a new MLS number and the DOM shows up on the printout they have to give to HO.

The DOM shows up on the CUSTOMER print out!!?? That's confidential info between the seller and broker! If the MLS didn't have a better option, I'd print it to Windows Viewer or PDF and cut/white out that part.
 

Jeff Horton

Thread Starter
Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
Not seasonal. All the typical services, etc. 60-70% developed. Nice middle class homes. Nothing obvious wrong. That is what is confusing.

Only two things that sort of make sense. Looks like the lived in homes sell better than the new/vacant ones. But they have all been built in the last 4 years. Just no sales data on most of them when they were new. But that has never been an issue in out market.

Other is maybe location? Thats what I am leaning on. It's not a bad location at all! It's outside of town and maybe buyers see it as too far out? It's the first development there in many years. I am sure many owner are commuters to the big city. It's great for that.

It could be the TV news, that possible. But I don't see it in the city Stats at all. There is a downturn in sales but not like this area. Go figure??
 

Dontbethatguy

Freshman Member
Joined
Sep 5, 2007
Professional Status
Certified Residential Appraiser
State
Florida
Ive never heard of a realtor not being able to withdraw or expire a listing and relist with a new number. That relatively common hear after say a 6 month listing. As far as DOM, how confidential can it be if myself and every other member of MLS has access to it. Normally when we have huge differences in DOM it is due to previously expired listings not included in current listing DOM.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Ive never heard of a realtor not being able to withdraw or expire a listing and relist with a new number. That relatively common hear after say a 6 month listing. As far as DOM, how confidential can it be if myself and every other member of MLS has access to it. Normally when we have huge differences in DOM it is due to previously expired listings not included in current listing DOM.

Not allowed here anymore. To help prevent fraud. I notice you are in Florida.:new_smile-l:
 

Ray Miller

Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Jumping Sassafrass!!!!!!!!!!!!

Look deep, fees for sewer if on a system, same for water, Insurance, Schools and fees, road service and fees.

I have known homes that have burnt to the ground because they were 1 foot out side the town or city limits. The city/town fire department would not help because that did not have a mutual aid compack.

Take a hard look around all points of the compass outside of the development.

Check the history of the builder.

Just my thinking.
 
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