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patientlywaiting.
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May 25, 2008 at 1:04 AM #211328May 25, 2008 at 1:33 AM #211181
HarryBosch
ParticipantI 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…”
May 25, 2008 at 1:33 AM #211248HarryBosch
ParticipantI 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…”
May 25, 2008 at 1:33 AM #211277HarryBosch
ParticipantI 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…”
May 25, 2008 at 1:33 AM #211299HarryBosch
ParticipantI 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…”
May 25, 2008 at 1:33 AM #211333HarryBosch
ParticipantI 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…”
May 25, 2008 at 1:48 AM #211186CA renter
ParticipantThe 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??
May 25, 2008 at 1:48 AM #211254CA renter
ParticipantThe 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??
May 25, 2008 at 1:48 AM #211282CA renter
ParticipantThe 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??
May 25, 2008 at 1:48 AM #211304CA renter
ParticipantThe 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??
May 25, 2008 at 1:48 AM #211338CA renter
ParticipantThe 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??
May 25, 2008 at 7:59 AM #211196Bugs
ParticipantAppraisers 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.
May 25, 2008 at 7:59 AM #211266Bugs
ParticipantAppraisers 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.
May 25, 2008 at 7:59 AM #211293Bugs
ParticipantAppraisers 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.
May 25, 2008 at 7:59 AM #211315Bugs
ParticipantAppraisers 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.
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