Proposal to get prices to come down faster

[CA renter]

How about we target a neighborhood and “mass-lowball” the listings there?

Just flood them with a dozen lowball offers, so they get the idea that they are still overpriced.

Anyone else notice how some properties are listed at fairly decent prices, and right down the street, some bozo lists for 40%+ more? Still a lot of denial, and these sellers need Piggs to show them what reality looks like.

It’s free, fun, and somebody might actually get their lowball bid hit! 🙂

[HarryBosch]

I thought comps were based on “sales” – not listings.

How can you base a comp value on a listing price?

The listing price is a moving target. The sale price is fixed and final. The listing price can change up or down.

I was also told by an appraiser that they do throw out the highest recent sale and the lowest recent sale to eliminate the extremes. Maybe he just told me that to CYA himself.

“…appraisers will start using our 40%-off listing in their comps…”

[HarryBosch]

I thought comps were based on “sales” – not listings.

How can you base a comp value on a listing price?

The listing price is a moving target. The sale price is fixed and final. The listing price can change up or down.

I was also told by an appraiser that they do throw out the highest recent sale and the lowest recent sale to eliminate the extremes. Maybe he just told me that to CYA himself.

“…appraisers will start using our 40%-off listing in their comps…”

[HarryBosch]

I thought comps were based on “sales” – not listings.

How can you base a comp value on a listing price?

The listing price is a moving target. The sale price is fixed and final. The listing price can change up or down.

I was also told by an appraiser that they do throw out the highest recent sale and the lowest recent sale to eliminate the extremes. Maybe he just told me that to CYA himself.

“…appraisers will start using our 40%-off listing in their comps…”

[HarryBosch]

I thought comps were based on “sales” – not listings.

How can you base a comp value on a listing price?

The listing price is a moving target. The sale price is fixed and final. The listing price can change up or down.

I was also told by an appraiser that they do throw out the highest recent sale and the lowest recent sale to eliminate the extremes. Maybe he just told me that to CYA himself.

“…appraisers will start using our 40%-off listing in their comps…”

[HarryBosch]

I thought comps were based on “sales” – not listings.

How can you base a comp value on a listing price?

The listing price is a moving target. The sale price is fixed and final. The listing price can change up or down.

I was also told by an appraiser that they do throw out the highest recent sale and the lowest recent sale to eliminate the extremes. Maybe he just told me that to CYA himself.

“…appraisers will start using our 40%-off listing in their comps…”

[CA renter]

The appraisers here will surely be able to give you a better answer, but it’s my understanding that appraisers look at sales AND listings — largely to determine where prices were and where they are going. If comparable sales are higher than current listings, one might assume that prices are going down. If new listings are higher than recent sales (and there’s a history of increasing prices in those sales numbers), one might assume prices are going up.

This would probably affect how restrictive a lender would be with mortgage terms & conditions.

Bugs??

[CA renter]

The appraisers here will surely be able to give you a better answer, but it’s my understanding that appraisers look at sales AND listings — largely to determine where prices were and where they are going. If comparable sales are higher than current listings, one might assume that prices are going down. If new listings are higher than recent sales (and there’s a history of increasing prices in those sales numbers), one might assume prices are going up.

This would probably affect how restrictive a lender would be with mortgage terms & conditions.

Bugs??

[CA renter]

The appraisers here will surely be able to give you a better answer, but it’s my understanding that appraisers look at sales AND listings — largely to determine where prices were and where they are going. If comparable sales are higher than current listings, one might assume that prices are going down. If new listings are higher than recent sales (and there’s a history of increasing prices in those sales numbers), one might assume prices are going up.

This would probably affect how restrictive a lender would be with mortgage terms & conditions.

Bugs??

[CA renter]

The appraisers here will surely be able to give you a better answer, but it’s my understanding that appraisers look at sales AND listings — largely to determine where prices were and where they are going. If comparable sales are higher than current listings, one might assume that prices are going down. If new listings are higher than recent sales (and there’s a history of increasing prices in those sales numbers), one might assume prices are going up.

This would probably affect how restrictive a lender would be with mortgage terms & conditions.

Bugs??

[CA renter]

The appraisers here will surely be able to give you a better answer, but it’s my understanding that appraisers look at sales AND listings — largely to determine where prices were and where they are going. If comparable sales are higher than current listings, one might assume that prices are going down. If new listings are higher than recent sales (and there’s a history of increasing prices in those sales numbers), one might assume prices are going up.

This would probably affect how restrictive a lender would be with mortgage terms & conditions.

Bugs??

[Bugs]

Appraisers pay attention to listings and they pay attention to the relationship between listing and selling prices on the closed sales. In an increasing market where sale prices are routinely in excess of the listing prices we tend to value those properties at the leading edge. When the markets are in decline and the listing prices are lower than the sale prices then we go to the edge of that trend as well.

Appraisers know from experience that the market doesn’t move so fast. Buyers always have alternatives and a single conversation with one of the competing brokers will bring your strategy to light. Once a competing broker says there’s been a lot of interest but you guys aren’t really interested in selling then the jig is up.

In order to manipulate a market – which is what you’re talking about here – you’d have to control enough of that market to convey those false expectations. I don’t think it could be done.

[Bugs]

Appraisers pay attention to listings and they pay attention to the relationship between listing and selling prices on the closed sales. In an increasing market where sale prices are routinely in excess of the listing prices we tend to value those properties at the leading edge. When the markets are in decline and the listing prices are lower than the sale prices then we go to the edge of that trend as well.

Appraisers know from experience that the market doesn’t move so fast. Buyers always have alternatives and a single conversation with one of the competing brokers will bring your strategy to light. Once a competing broker says there’s been a lot of interest but you guys aren’t really interested in selling then the jig is up.

In order to manipulate a market – which is what you’re talking about here – you’d have to control enough of that market to convey those false expectations. I don’t think it could be done.

[Bugs]

Appraisers pay attention to listings and they pay attention to the relationship between listing and selling prices on the closed sales. In an increasing market where sale prices are routinely in excess of the listing prices we tend to value those properties at the leading edge. When the markets are in decline and the listing prices are lower than the sale prices then we go to the edge of that trend as well.

Appraisers know from experience that the market doesn’t move so fast. Buyers always have alternatives and a single conversation with one of the competing brokers will bring your strategy to light. Once a competing broker says there’s been a lot of interest but you guys aren’t really interested in selling then the jig is up.

In order to manipulate a market – which is what you’re talking about here – you’d have to control enough of that market to convey those false expectations. I don’t think it could be done.

[Bugs]

Appraisers pay attention to listings and they pay attention to the relationship between listing and selling prices on the closed sales. In an increasing market where sale prices are routinely in excess of the listing prices we tend to value those properties at the leading edge. When the markets are in decline and the listing prices are lower than the sale prices then we go to the edge of that trend as well.

Appraisers know from experience that the market doesn’t move so fast. Buyers always have alternatives and a single conversation with one of the competing brokers will bring your strategy to light. Once a competing broker says there’s been a lot of interest but you guys aren’t really interested in selling then the jig is up.

In order to manipulate a market – which is what you’re talking about here – you’d have to control enough of that market to convey those false expectations. I don’t think it could be done.

[Author]

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