Weird Sale

[explorer]

Here's the "benefit,"

Including that sale would contribute to lowering the median price for the neighboorhood, and if everyone did that, lowering it for the region. Now, lowering the price (within "reason"), on a house far above the median price, will actually RAISE the median when the below median houses are not selling.

So, this would be considered a FSBO? Therefore no commissions involved. Yet another reason to ignore it.

I blame this blog for my enlightened cynicism...

[jjl]

There is no rule that a house must sell for market value. Consider the possiblity of parents selling to kids on a owner contract for a great price to help out their kids. In this case it would be improper to use this sale as a comp. because of special circumstances.

There's no story here... move on.

[WestSideBilly]

[Ubersalad]

[WestSideBilly]

[ira s]

WSB,
A good, ethical appraise would also exclude the "example" of yours. This is not one to blame agents for, they've got plenty already they're guilty of..This one is pressure from the lender to the appraiser threatening his/her livelihood if the home doesn't appraise for a certain amount...With a declining market, I'm not sure how common it is now, but a few years ago in the several appraisal classes I took, appraisers were reporting that it was a very common practice to get this pressure from lenders.
One appraiser, Richard Hagar in North Seattle walked away from it and now refuses lender appraisers( and teaches real estate fraud).

[jjl]

Median home prices do not come into play when I prepare a market analysis. So your arguement about comparing homes using a "median" is a little weird. For a market analysis I compare like homes in the neighborhood and usually give the seller an appropriate range to price their home. I feel it's important for the seller to take responsibility in the price and to price his home according to his motivation to sell.

Also, I physically preview each home (that I can access) that I use in my market anaylsis - because as you know "you can't judge a home by it's picture". Condition, finish work, neighborhood, etc all play a role in pricing a home. Just because 2 homes are 3 beds 2 baths and 2000 sf each doesn't mean a thing in terms of being comparable until you analyze the details and amenities of each home.

[SandyK]

[Ubersalad]

WSB, very simply put. If there are 10 houses sold in your neighborhood with the same age, size and condition. 9 of them are within the same range, but there's 1 that drops more than 50%, therefore buyer/seller should pay 25% less than the other 9 houses and lender shouldn't lend because it isn't market value?

And no, you don't understand statistics. Extreme outliers are removed from both end.

But Yes, you are an idiot.

[WestSideBilly]

Ira, jjl, SandyK - thanks for the intelligent responses.

The "market value" quote was interesting... it could be argued a substantial number of buyers (not just Seattle) did not meet one or more of those criteria. C'est la vie, I guess.