- This topic has 65 replies, 7 voices, and was last updated 15 years, 8 months ago by
NotCranky.
-
AuthorPosts
-
March 8, 2009 at 2:33 PM #362804March 8, 2009 at 2:50 PM #362635
pepsi
ParticipantSDR:
you are trying to use an area number on a aingle transaction, and then ask why it has no accuracy ?
No one, including me, would say the data is useful when apply it to a single transaction with “accuracy”.
Who said the number is accurate on transaction level ?If I am buying LJ, and I think the price is too high, then with this data, I might start my offering price at -15%.
If I think the price is below market, I could offer above listing.
Do that make the data useless ? No, I think it still gives me a sense where the market is going, it just does not apply at transaciton-level.March 8, 2009 at 2:50 PM #362930ParticipantSDR:
you are trying to use an area number on a aingle transaction, and then ask why it has no accuracy ?
No one, including me, would say the data is useful when apply it to a single transaction with “accuracy”.
Who said the number is accurate on transaction level ?If I am buying LJ, and I think the price is too high, then with this data, I might start my offering price at -15%.
If I think the price is below market, I could offer above listing.
Do that make the data useless ? No, I think it still gives me a sense where the market is going, it just does not apply at transaciton-level.March 8, 2009 at 2:50 PM #362824ParticipantSDR:
you are trying to use an area number on a aingle transaction, and then ask why it has no accuracy ?
No one, including me, would say the data is useful when apply it to a single transaction with “accuracy”.
Who said the number is accurate on transaction level ?If I am buying LJ, and I think the price is too high, then with this data, I might start my offering price at -15%.
If I think the price is below market, I could offer above listing.
Do that make the data useless ? No, I think it still gives me a sense where the market is going, it just does not apply at transaciton-level.March 8, 2009 at 2:50 PM #362340ParticipantSDR:
you are trying to use an area number on a aingle transaction, and then ask why it has no accuracy ?
No one, including me, would say the data is useful when apply it to a single transaction with “accuracy”.
Who said the number is accurate on transaction level ?If I am buying LJ, and I think the price is too high, then with this data, I might start my offering price at -15%.
If I think the price is below market, I could offer above listing.
Do that make the data useless ? No, I think it still gives me a sense where the market is going, it just does not apply at transaciton-level.March 8, 2009 at 2:50 PM #362781ParticipantSDR:
you are trying to use an area number on a aingle transaction, and then ask why it has no accuracy ?
No one, including me, would say the data is useful when apply it to a single transaction with “accuracy”.
Who said the number is accurate on transaction level ?If I am buying LJ, and I think the price is too high, then with this data, I might start my offering price at -15%.
If I think the price is below market, I could offer above listing.
Do that make the data useless ? No, I think it still gives me a sense where the market is going, it just does not apply at transaciton-level.March 8, 2009 at 2:58 PM #362829XBoxBoy
ParticipantNot sure how valuable or invaluable this chart is, but as someone who follows La Jolla closely, I’m not the least bit surprised La Jolla tops the chart. Here a couple reasons why,
1) There are very few REOs that go out at a low price then get bid up.
2) Because houses are so different in most parts of La Jolla, comps become very difficult. Judging the market value of a house in La Jolla is much harder and much more subjective than other areas. This has become even more difficult as the number of sales has dropped off. (there are even fewer comps available because there are fewer recent sales)
3) There is a very large (and growing) inventory in La Jolla, unlike other areas where inventory has stabilized or even decreased. This means that sellers, when they get an offer, any offer, are more likely to think hard about their chances of getting another offer. (currently 264 SFR’s in 92037 with average monthly sales in the mid to high teens. That would be about 15 months of inventory)
4) In La Jolla, probably most the issues that SD Realtor mentions probably don’t apply. Just as there aren’t that many REOs, there aren’t many Short Sales, Probably most appraise for sale price, or the buyer is bringing enough cash that the loan (if there is one) will still go through. If there are credits for repairs they probably aren’t much as a percentage of purchase price. I guess we still don’t know with value range whether they took the top price or the bottom, but as long as they were consistent, it’s not that important.
But I do agree with SD Realtor that this chart has no value if I interpret it as telling me that the average house in La Jolla is worth 10% less than asking price. (Or that if I get 10% off I got a good deal) To value a house, other data points are far more important.
But maybe there is value in that it tells me that it is not unreasonable to make low ball offers, even in La Jolla. And that is a big change. Three or four years ago, the suggestion that you could get a deal done in La Jolla for 10% off asking price would have brought laughter and derision. However, now that doesn’t seem outrageous but, well just plain average.
XBoxBoy
March 8, 2009 at 2:58 PM #362935ParticipantNot sure how valuable or invaluable this chart is, but as someone who follows La Jolla closely, I’m not the least bit surprised La Jolla tops the chart. Here a couple reasons why,
1) There are very few REOs that go out at a low price then get bid up.
2) Because houses are so different in most parts of La Jolla, comps become very difficult. Judging the market value of a house in La Jolla is much harder and much more subjective than other areas. This has become even more difficult as the number of sales has dropped off. (there are even fewer comps available because there are fewer recent sales)
3) There is a very large (and growing) inventory in La Jolla, unlike other areas where inventory has stabilized or even decreased. This means that sellers, when they get an offer, any offer, are more likely to think hard about their chances of getting another offer. (currently 264 SFR’s in 92037 with average monthly sales in the mid to high teens. That would be about 15 months of inventory)
4) In La Jolla, probably most the issues that SD Realtor mentions probably don’t apply. Just as there aren’t that many REOs, there aren’t many Short Sales, Probably most appraise for sale price, or the buyer is bringing enough cash that the loan (if there is one) will still go through. If there are credits for repairs they probably aren’t much as a percentage of purchase price. I guess we still don’t know with value range whether they took the top price or the bottom, but as long as they were consistent, it’s not that important.
But I do agree with SD Realtor that this chart has no value if I interpret it as telling me that the average house in La Jolla is worth 10% less than asking price. (Or that if I get 10% off I got a good deal) To value a house, other data points are far more important.
But maybe there is value in that it tells me that it is not unreasonable to make low ball offers, even in La Jolla. And that is a big change. Three or four years ago, the suggestion that you could get a deal done in La Jolla for 10% off asking price would have brought laughter and derision. However, now that doesn’t seem outrageous but, well just plain average.
XBoxBoy
March 8, 2009 at 2:58 PM #362640ParticipantNot sure how valuable or invaluable this chart is, but as someone who follows La Jolla closely, I’m not the least bit surprised La Jolla tops the chart. Here a couple reasons why,
1) There are very few REOs that go out at a low price then get bid up.
2) Because houses are so different in most parts of La Jolla, comps become very difficult. Judging the market value of a house in La Jolla is much harder and much more subjective than other areas. This has become even more difficult as the number of sales has dropped off. (there are even fewer comps available because there are fewer recent sales)
3) There is a very large (and growing) inventory in La Jolla, unlike other areas where inventory has stabilized or even decreased. This means that sellers, when they get an offer, any offer, are more likely to think hard about their chances of getting another offer. (currently 264 SFR’s in 92037 with average monthly sales in the mid to high teens. That would be about 15 months of inventory)
4) In La Jolla, probably most the issues that SD Realtor mentions probably don’t apply. Just as there aren’t that many REOs, there aren’t many Short Sales, Probably most appraise for sale price, or the buyer is bringing enough cash that the loan (if there is one) will still go through. If there are credits for repairs they probably aren’t much as a percentage of purchase price. I guess we still don’t know with value range whether they took the top price or the bottom, but as long as they were consistent, it’s not that important.
But I do agree with SD Realtor that this chart has no value if I interpret it as telling me that the average house in La Jolla is worth 10% less than asking price. (Or that if I get 10% off I got a good deal) To value a house, other data points are far more important.
But maybe there is value in that it tells me that it is not unreasonable to make low ball offers, even in La Jolla. And that is a big change. Three or four years ago, the suggestion that you could get a deal done in La Jolla for 10% off asking price would have brought laughter and derision. However, now that doesn’t seem outrageous but, well just plain average.
XBoxBoy
March 8, 2009 at 2:58 PM #362786ParticipantNot sure how valuable or invaluable this chart is, but as someone who follows La Jolla closely, I’m not the least bit surprised La Jolla tops the chart. Here a couple reasons why,
1) There are very few REOs that go out at a low price then get bid up.
2) Because houses are so different in most parts of La Jolla, comps become very difficult. Judging the market value of a house in La Jolla is much harder and much more subjective than other areas. This has become even more difficult as the number of sales has dropped off. (there are even fewer comps available because there are fewer recent sales)
3) There is a very large (and growing) inventory in La Jolla, unlike other areas where inventory has stabilized or even decreased. This means that sellers, when they get an offer, any offer, are more likely to think hard about their chances of getting another offer. (currently 264 SFR’s in 92037 with average monthly sales in the mid to high teens. That would be about 15 months of inventory)
4) In La Jolla, probably most the issues that SD Realtor mentions probably don’t apply. Just as there aren’t that many REOs, there aren’t many Short Sales, Probably most appraise for sale price, or the buyer is bringing enough cash that the loan (if there is one) will still go through. If there are credits for repairs they probably aren’t much as a percentage of purchase price. I guess we still don’t know with value range whether they took the top price or the bottom, but as long as they were consistent, it’s not that important.
But I do agree with SD Realtor that this chart has no value if I interpret it as telling me that the average house in La Jolla is worth 10% less than asking price. (Or that if I get 10% off I got a good deal) To value a house, other data points are far more important.
But maybe there is value in that it tells me that it is not unreasonable to make low ball offers, even in La Jolla. And that is a big change. Three or four years ago, the suggestion that you could get a deal done in La Jolla for 10% off asking price would have brought laughter and derision. However, now that doesn’t seem outrageous but, well just plain average.
XBoxBoy
March 8, 2009 at 2:58 PM #362344ParticipantNot sure how valuable or invaluable this chart is, but as someone who follows La Jolla closely, I’m not the least bit surprised La Jolla tops the chart. Here a couple reasons why,
1) There are very few REOs that go out at a low price then get bid up.
2) Because houses are so different in most parts of La Jolla, comps become very difficult. Judging the market value of a house in La Jolla is much harder and much more subjective than other areas. This has become even more difficult as the number of sales has dropped off. (there are even fewer comps available because there are fewer recent sales)
3) There is a very large (and growing) inventory in La Jolla, unlike other areas where inventory has stabilized or even decreased. This means that sellers, when they get an offer, any offer, are more likely to think hard about their chances of getting another offer. (currently 264 SFR’s in 92037 with average monthly sales in the mid to high teens. That would be about 15 months of inventory)
4) In La Jolla, probably most the issues that SD Realtor mentions probably don’t apply. Just as there aren’t that many REOs, there aren’t many Short Sales, Probably most appraise for sale price, or the buyer is bringing enough cash that the loan (if there is one) will still go through. If there are credits for repairs they probably aren’t much as a percentage of purchase price. I guess we still don’t know with value range whether they took the top price or the bottom, but as long as they were consistent, it’s not that important.
But I do agree with SD Realtor that this chart has no value if I interpret it as telling me that the average house in La Jolla is worth 10% less than asking price. (Or that if I get 10% off I got a good deal) To value a house, other data points are far more important.
But maybe there is value in that it tells me that it is not unreasonable to make low ball offers, even in La Jolla. And that is a big change. Three or four years ago, the suggestion that you could get a deal done in La Jolla for 10% off asking price would have brought laughter and derision. However, now that doesn’t seem outrageous but, well just plain average.
XBoxBoy
March 8, 2009 at 3:23 PM #362796SD Realtor
ParticipantPepsi please understand that when I make an offer for a house I want to buy, I look at factors that I believe are important to my purchase. I will state them yet again, I look at recent sales for comps that match the home I am interested in. I look at days on market, I look at distress level. I look at recent activity, I look at interest in the home. I can honestly say I have never used the average difference between sales price and list price to value a home. I have never done it for myself, and I have never done it for any clients.
Perhaps some other realtors who post here use that particular statistic to help them price homes for clients.
To be clear here, you even said it youself that you might start your offereing at -15% or even above listing. So are we not saying the same thing? That your offer will not be based on the listing price, but what you feel is a true valuation of the home?
March 8, 2009 at 3:23 PM #362650ParticipantPepsi please understand that when I make an offer for a house I want to buy, I look at factors that I believe are important to my purchase. I will state them yet again, I look at recent sales for comps that match the home I am interested in. I look at days on market, I look at distress level. I look at recent activity, I look at interest in the home. I can honestly say I have never used the average difference between sales price and list price to value a home. I have never done it for myself, and I have never done it for any clients.
Perhaps some other realtors who post here use that particular statistic to help them price homes for clients.
To be clear here, you even said it youself that you might start your offereing at -15% or even above listing. So are we not saying the same thing? That your offer will not be based on the listing price, but what you feel is a true valuation of the home?
March 8, 2009 at 3:23 PM #362838ParticipantPepsi please understand that when I make an offer for a house I want to buy, I look at factors that I believe are important to my purchase. I will state them yet again, I look at recent sales for comps that match the home I am interested in. I look at days on market, I look at distress level. I look at recent activity, I look at interest in the home. I can honestly say I have never used the average difference between sales price and list price to value a home. I have never done it for myself, and I have never done it for any clients.
Perhaps some other realtors who post here use that particular statistic to help them price homes for clients.
To be clear here, you even said it youself that you might start your offereing at -15% or even above listing. So are we not saying the same thing? That your offer will not be based on the listing price, but what you feel is a true valuation of the home?
March 8, 2009 at 3:23 PM #362353ParticipantPepsi please understand that when I make an offer for a house I want to buy, I look at factors that I believe are important to my purchase. I will state them yet again, I look at recent sales for comps that match the home I am interested in. I look at days on market, I look at distress level. I look at recent activity, I look at interest in the home. I can honestly say I have never used the average difference between sales price and list price to value a home. I have never done it for myself, and I have never done it for any clients.
Perhaps some other realtors who post here use that particular statistic to help them price homes for clients.
To be clear here, you even said it youself that you might start your offereing at -15% or even above listing. So are we not saying the same thing? That your offer will not be based on the listing price, but what you feel is a true valuation of the home?
-
AuthorPosts
- You must be logged in to reply to this topic.