Is this the new comp killer in 4S townhomes?

[jpinpb]

SDR – You’re the go-to guy here. This sold quick. Never seen a bank owned REO go that fast. They must have had offers in the works before it got listed in the MLS or something.
For some reason I thought REOs count as comps. It should b/c there will be many. It would set some trend. Can’t ignore the fact that the home isn’t holding value. W/banks being on the hook, seems now w/tightening of credit, full docs, down payment, they’ll want to make sure all i’s are dotted and t’s are crossed and appraised values hold up. No?
Couple more at this price, tempting that even I would consider actually buying there w/MR and HOAs and all.

[temeculaguy]

jp, I didn’t mean to say reo’s don’t count as comps, just not the price when it goes from the person losing the house back to the bank, those can come up as closed sales but they weren’t really a sale and they sometimes only record the amount of the first mortgage so they can be skewed. When a bank owned house sells on the open market or at an auction, it counts, but appraises take into account that is was an REO because the condition can vary. It’s logical because a thrashed repo with everything removed has to be discounted some when compared to a turnkey property, but not all repos are thrashed, so one comp doesn’t set the market, it takes a couple but it is on course for sure.

SDR will figure it out.

[temeculaguy]

jp, I didn’t mean to say reo’s don’t count as comps, just not the price when it goes from the person losing the house back to the bank, those can come up as closed sales but they weren’t really a sale and they sometimes only record the amount of the first mortgage so they can be skewed. When a bank owned house sells on the open market or at an auction, it counts, but appraises take into account that is was an REO because the condition can vary. It’s logical because a thrashed repo with everything removed has to be discounted some when compared to a turnkey property, but not all repos are thrashed, so one comp doesn’t set the market, it takes a couple but it is on course for sure.

SDR will figure it out.

[temeculaguy]

jp, I didn’t mean to say reo’s don’t count as comps, just not the price when it goes from the person losing the house back to the bank, those can come up as closed sales but they weren’t really a sale and they sometimes only record the amount of the first mortgage so they can be skewed. When a bank owned house sells on the open market or at an auction, it counts, but appraises take into account that is was an REO because the condition can vary. It’s logical because a thrashed repo with everything removed has to be discounted some when compared to a turnkey property, but not all repos are thrashed, so one comp doesn’t set the market, it takes a couple but it is on course for sure.

SDR will figure it out.

[temeculaguy]

jp, I didn’t mean to say reo’s don’t count as comps, just not the price when it goes from the person losing the house back to the bank, those can come up as closed sales but they weren’t really a sale and they sometimes only record the amount of the first mortgage so they can be skewed. When a bank owned house sells on the open market or at an auction, it counts, but appraises take into account that is was an REO because the condition can vary. It’s logical because a thrashed repo with everything removed has to be discounted some when compared to a turnkey property, but not all repos are thrashed, so one comp doesn’t set the market, it takes a couple but it is on course for sure.

SDR will figure it out.

[temeculaguy]

jp, I didn’t mean to say reo’s don’t count as comps, just not the price when it goes from the person losing the house back to the bank, those can come up as closed sales but they weren’t really a sale and they sometimes only record the amount of the first mortgage so they can be skewed. When a bank owned house sells on the open market or at an auction, it counts, but appraises take into account that is was an REO because the condition can vary. It’s logical because a thrashed repo with everything removed has to be discounted some when compared to a turnkey property, but not all repos are thrashed, so one comp doesn’t set the market, it takes a couple but it is on course for sure.

SDR will figure it out.

[jpinpb]

Ah – I see what you’re saying. When it goes back to the bank before they sell it as REO, does it count as a sale comp? Good question. I read somewhere that they’re counting properties that go back to banks as a sale. I thought in some chart they did count those as sales. So if it goes back to bank and they count the comp, at what price, the original loan amount? That would be skewed if they only do the first mortgage.

[jpinpb]

Ah – I see what you’re saying. When it goes back to the bank before they sell it as REO, does it count as a sale comp? Good question. I read somewhere that they’re counting properties that go back to banks as a sale. I thought in some chart they did count those as sales. So if it goes back to bank and they count the comp, at what price, the original loan amount? That would be skewed if they only do the first mortgage.

[jpinpb]

Ah – I see what you’re saying. When it goes back to the bank before they sell it as REO, does it count as a sale comp? Good question. I read somewhere that they’re counting properties that go back to banks as a sale. I thought in some chart they did count those as sales. So if it goes back to bank and they count the comp, at what price, the original loan amount? That would be skewed if they only do the first mortgage.

[jpinpb]

Ah – I see what you’re saying. When it goes back to the bank before they sell it as REO, does it count as a sale comp? Good question. I read somewhere that they’re counting properties that go back to banks as a sale. I thought in some chart they did count those as sales. So if it goes back to bank and they count the comp, at what price, the original loan amount? That would be skewed if they only do the first mortgage.

[jpinpb]

Ah – I see what you’re saying. When it goes back to the bank before they sell it as REO, does it count as a sale comp? Good question. I read somewhere that they’re counting properties that go back to banks as a sale. I thought in some chart they did count those as sales. So if it goes back to bank and they count the comp, at what price, the original loan amount? That would be skewed if they only do the first mortgage.

[SD Realtor]

Huys lets see what this closes at before we do more analysis. Also with regards to comps, I get ALOT of questions like this from frustrated buyes. That is, they may miss out on a home that is initially listed very low, but then bid up. Still the home sells for less then comps in the area. Is that good? Absolutely. Is it something that makes an instaneous response to other comps when those other comps get appraised?

Well I am not an appraiser. That question would be much better answered by Bugs and/or other appraisers.

My OPINION is that I believe it is an analogy to rain… A sprinkle here or there and the ground (which represents the overall regional market where the low sale price is at) doesn’t get wet. However as more and more of them happen, the ground gets wet and stays wet. See what I am saying? One comp in my opinion is not a comp killer. However when the number of comps that are significantly lower start to support more then a trivial percentage of sales or at least represent a strong trend (for the region) then I believe you get the big moves down because the higher priced places that are true comps simply will not appraise.

The list price of this home is definitely near the 250/sf level and the comps for attached homes similar are well over the 300/sf. I expect it will move for the mid to high 300’s when it is said and done. Just a guess.

SD Realtor

[SD Realtor]

Huys lets see what this closes at before we do more analysis. Also with regards to comps, I get ALOT of questions like this from frustrated buyes. That is, they may miss out on a home that is initially listed very low, but then bid up. Still the home sells for less then comps in the area. Is that good? Absolutely. Is it something that makes an instaneous response to other comps when those other comps get appraised?

Well I am not an appraiser. That question would be much better answered by Bugs and/or other appraisers.

My OPINION is that I believe it is an analogy to rain… A sprinkle here or there and the ground (which represents the overall regional market where the low sale price is at) doesn’t get wet. However as more and more of them happen, the ground gets wet and stays wet. See what I am saying? One comp in my opinion is not a comp killer. However when the number of comps that are significantly lower start to support more then a trivial percentage of sales or at least represent a strong trend (for the region) then I believe you get the big moves down because the higher priced places that are true comps simply will not appraise.

The list price of this home is definitely near the 250/sf level and the comps for attached homes similar are well over the 300/sf. I expect it will move for the mid to high 300’s when it is said and done. Just a guess.

SD Realtor

[SD Realtor]

Huys lets see what this closes at before we do more analysis. Also with regards to comps, I get ALOT of questions like this from frustrated buyes. That is, they may miss out on a home that is initially listed very low, but then bid up. Still the home sells for less then comps in the area. Is that good? Absolutely. Is it something that makes an instaneous response to other comps when those other comps get appraised?

Well I am not an appraiser. That question would be much better answered by Bugs and/or other appraisers.

My OPINION is that I believe it is an analogy to rain… A sprinkle here or there and the ground (which represents the overall regional market where the low sale price is at) doesn’t get wet. However as more and more of them happen, the ground gets wet and stays wet. See what I am saying? One comp in my opinion is not a comp killer. However when the number of comps that are significantly lower start to support more then a trivial percentage of sales or at least represent a strong trend (for the region) then I believe you get the big moves down because the higher priced places that are true comps simply will not appraise.

The list price of this home is definitely near the 250/sf level and the comps for attached homes similar are well over the 300/sf. I expect it will move for the mid to high 300’s when it is said and done. Just a guess.

SD Realtor

[SD Realtor]

Huys lets see what this closes at before we do more analysis. Also with regards to comps, I get ALOT of questions like this from frustrated buyes. That is, they may miss out on a home that is initially listed very low, but then bid up. Still the home sells for less then comps in the area. Is that good? Absolutely. Is it something that makes an instaneous response to other comps when those other comps get appraised?

Well I am not an appraiser. That question would be much better answered by Bugs and/or other appraisers.

My OPINION is that I believe it is an analogy to rain… A sprinkle here or there and the ground (which represents the overall regional market where the low sale price is at) doesn’t get wet. However as more and more of them happen, the ground gets wet and stays wet. See what I am saying? One comp in my opinion is not a comp killer. However when the number of comps that are significantly lower start to support more then a trivial percentage of sales or at least represent a strong trend (for the region) then I believe you get the big moves down because the higher priced places that are true comps simply will not appraise.

The list price of this home is definitely near the 250/sf level and the comps for attached homes similar are well over the 300/sf. I expect it will move for the mid to high 300’s when it is said and done. Just a guess.

SD Realtor

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