Lost Real Estate Commisions
Single Family, 34% sold, unsold 66%, avg. sale $270,169, @5% $13,408
Attached, Â Â Â 20% sold, unsold 80%, avg. sale $Â 89,689, @5% $Â 4,484Â
2-4 units, 21% sold, unsold 79%, avg.sale $296,936. @5% $14,847
Total $32,739 Simple math 300 listings = 75 sales, 225 not sold
Single Family, 30% sold, unsold 70%, avg. sale $284,121, @5% $14,206
Attached, Â Â Â 23% sold, unsold 77%, avg. sale $284,121, @5% $Â 3,290
Â 2-4 units, Â Â 19% sold, unsold 81%, avg. sale $300,476, @5% $15,024
Total $32,520Â Â Â Simple math 300 listings = 72 sales, 228 not sold
Single Family, 34% sold, unsold 66%, avg. sale $761,219, @5% $38,061
Attached, Â Â Â 23% sold, unsold 77%, avg. sale $183,145, @5% $Â 9,147
2-4 units, 19% sold, unsold 81%, avg. sale $396.334, @5% $19,817
Total $67,035 Simple math 300 listings = 76 sales, 224 not sold
Single Family, 32% sold, unsold 68%, avg. sale $545,403, @5% $27,270
Attached 31% sold, unsold 69%, avg. sale $193,825, @5% $ 9.691
2-4 units 23% sold, unsold 77%, avg. sale $384,182. @5% $19,259
Total $64,166Â Â Simple math 300 listing = 86 sales, 214 not sold
Single Family, 43% sold, unsold 57%, avg. sale $818,046, @5% $40,902
Attached 40% sold, unsold 60%, avg. sale $352,740, @5% $17,637
2-4 units 25% sold, unsold 75%, avg. sale $442,268, @5% $22,113
Total $80,642Â Â Â Simple math 300 listings = 108 sales, 192 not sold
Single Family, 33% sold, unsold 67%, avg. sale $1,121,125, @5% $56,056
Attached 36% sold, unsold 64%, avg. sale $Â Â 337,849, @5% $16,892
2-4 units 27% sold, unsold 73%, avg. sale $Â Â 579,040, @5% $28,952
Total $101,900Â Â Â Simple math 300 listings = 96 sales, 204 not sold
MLS 8007 Â Â Â
Single Family,Â 35% sold, unsold 65%, avg. sale $1,980,037, @5% $99,002
Attached 37% sold, unsold 63%, avg. sale $Â Â 413,428, @5% $20,671
2-4 units 21% sold, unsold 79%, avg. sale $Â Â 656,885, @5% $32,844
Total $152,517 Simple math 300 listing = 93 sales, 207 not sold
Based on a 5% commission, if a Real Estate office sold one sale in each catgegory. (21 sales)
the revenue would be: $498,790. Assume a 50-50 split, the listing and sales offices, $249,395
each, 2 agents $124,698 each.
BasedÂ on the simple math data there were 2,100 listing units, of these listings 606 units soldÂ
and 1,494 units not sold.(28.86% of the listing sold, and 71.14% did not sell.)
If the listing agents were playing baseball, they had 2100 appearances at home plate and struckÂ out 1,494 times. Contact me if you want to improve yourÂ batting average.
The number one reason why a listing unitÂ is not aÂ sale is the "PRICE".
There is not a 100% formula to price a property. The best way to price a property is to use the Appraisal Principle of Substitution; The value of an article does not exceed the value of an acceptable substitute.
I recently did an purchase appraisal for a property. The appraisal value was 9,5% less than the contract price. The main reason the appraisal value was less than the contract price was the
Principle of Substitution.
The comparable sales were within .5 mile of the subject property. The said properties had similar amenties, room and bath count. The comparable properties were give minus adjustments for dollar concessions to the buyer, superior parking and a time adjustment.
Also consideration was the market data 5% difference between the final list price and the the sale price.
Please review my articles on Jack Schlenk blog and web site WcuAppraisals.com
Jack Schlenk, ConsultantÂ
Illinois's licenses, Certified RE Appraisal & RE Managing Broker
773 685 8300Â
The Home Valuation Code of Conduct went into effect 05/01/2009
Todd Baur, President and Chief Operating Officer of LandSafe Appraisal Services inc.(a appraisal management company) ,described appraisal independence for LandsafeÂ as aÂ fundamental principal that fosters an environment in which property value is assessed in the purest form.Â
The newlyÂ LandSafeÂ - stated internal policy on appraiser independence, which states:
Landsafe Appraisal Services Inc. an appraisal management company is committed to providing
a process through which its appraiser are able to provide their independent judgment for the property they are asked to appraise. LandSafe promotes and requires an operating environment for its appraisers that is consistent with the vision and requirement established by federal and
state guidelines. The environment is designed to mandate independence and maintain an appraisal process that is free from undue influence.
The Landsafe Appraisal Independence Hotline is 866 462 8221, TheÂ E Mail address is
Home Valuation Code of Conduct has 11 Sections.
SectionÂ I has 10 sub paragraphs. Sections II, III, IV,&V have no sub paragraphs, VI has
6 sub paragraphs, VII, VIII, IX, X, XI, have no sub paragraphs.
Of interest to the Appraiser:
Section I No employee, director officer, or agent of the lender, or any other third party acting as joint venture partner, independent contractor, appraisal management company, or partner on behalf of the lender shall influence of attempt to influence the development, reporting, result,or review of an appraisal through coercion, extortion, collusion, compensation, instruction, inducement, intimidation, bribery,or in any other manner including but not limited to; see 1-10
Paragraph 2, withholding or threatening to withhold future business for an appraiser, or demoting or terminating or threatening to demote or terminate an appraiser.
Paragraph 8, allowing the removal of an appraiser from a list of qualified appraisers used by any entity, without prior written notice to such appraiser, which notice shall include written evidence of the appraiser's illegal conduct, a violation of USPAP (The Uniform Standards of Professional Appraisal Practice) or state licensing standards, substandard performance or otherwise improper or unprofessional behavior.
Â Appraisers should also read, VIII and all of the HVCC pages.
IX. Any lender who has a reasonable basis to believe an appraiser is violating applicable laws, or is otherwise engaging unethical conduct, shall promptly refer the matter to the Independent Valuation Protection Institute and to the applicable State appraiser certifying and licensing agency.
X, The lender shall certify, warrant and represent the appraisal report was obtained in a manner consistent with this Code of Conduct.
Based on paragraph 2,Â and paragraphÂ 8 the appraiser canÂ not have future business taken away, and or be removed from the list of qualified appraiser,without prior written evidence present to the appraiser.
Does this mean the appraiser will continue to receive appraisal orders until the investigation andÂ
the written evidence is present to the appraiser?Â
USPAP has 10 standards,Â IfÂ an appraiser does not do Appraisal Review, Consulting, Mass
Appraisals, Personal and /or Business Appraisal then the Standard 1, Real Property Appraisal Development, and Standard 2 Real Property Appraisal Reporting, are the standardsÂ for theÂ
Standard 1 has 6 rules forÂ the developing a real property appraisal.Â
An appraiser must identify the problem to be solved, determine the scope of work necessary toÂ solve the problem and correctly complete research and analyses necessary to produce a credible appraisal.Â The 6 rules expand the reasoning for this statementÂ
StandardÂ 2Â has 4Â rules for the for real property appraisal reporting.
In reporting the results of a real property appraisal an appraiser must communicate each analysis opinion and conclusion in a manner thatÂ not misleading. The 4 rules expand the
reasoning for this statement.
If the appraiser'sÂ violatedÂ USPAP then this would cover illegal conduct, and state licensing standards.
What does improper or unprofessional behavior mean? DoesÂ the entity that engagesÂ the
appraiser in the engagement letter spell out what their interpretation of improper or
unprofessional behavior mean?
The appraiser should know before accepting the assignment.
Certified Appraiser, Real Estate Broker