A comparable listed at $420,000 and sold for $399,000. What sale-to-list price ratio (sale price ÷ list price) does this indicate?
Correct Answer
A) 95.0%
The sale-to-list ratio is the sale price divided by the list price: $399,000 ÷ $420,000 = 95.0%. The Interagency Guidelines list this ratio, which they call the list-to-sale price ratio, as market conditions information.
Why This Is the Correct Answer
Option A is correct because the sale-to-list ratio is sale price divided by list price: $399,000 / $420,000 = 0.95, or 95.0%. This shows the property sold at 95% of its asking price.
Why the Other Options Are Wrong
Option B: 105.3%
Option B, 105.3%, inverts the ratio: $420,000 / $399,000 = 105.3%. The question defines the ratio as sale price divided by list price, which is $399,000 / $420,000 = 95.0%.
Option C: 5.0%
Option C, 5.0%, reports the discount from list: ($420,000 - $399,000) / $420,000 = $21,000 / $420,000 = 5.0%. That is the percentage reduction, not the sale-to-list ratio of 95.0%.
Option D: 5.3%
Option D, 5.3%, divides the $21,000 discount by the sale price: $21,000 / $399,000 = 5.3%. This is neither the discount from list nor the ratio; the correct ratio is $399,000 / $420,000 = 95.0%.
Sold over listed
The name says the order: sale price on top, list price on the bottom. Sold over listed gives the sale-to-list ratio.
How to use: Use this to set up any sale-to-list ratio calculation.
Exam Tip
Check which price goes on top before dividing; inverting the ratio or reporting the discount are common traps.
Common Mistakes to Avoid
- -Dividing list price by sale price
- -Reporting the discount percentage as the ratio
- -Dividing the discount by the sale price
Concept Deep Dive
Analysis
This question tests calculating a sale-to-list price ratio. The ratio is the sale price divided by the list price, so put the sale price on top. The distractors come from inverting the ratio or reporting the discount instead.
Background Knowledge
The relationship between list and sale prices is a common market conditions indicator. A ratio below 100% suggests properties are selling below asking, while a ratio above 100% suggests competition among buyers. The Interagency Guidelines list this ratio among market conditions information.
Real-World Application
While analyzing market conditions, an appraiser finds that recent sales in the neighborhood closed at about 95% of list price. The appraiser notes this in the market analysis as one sign of how buyers are negotiating.
More Sales Comparison Questions
Supported adjustments are: non-market financing $10,000, GLA $36/sf, garage $3,500 per car, pool/spa $12,500. A comparable identical to the 2,800 sf subject sold for $267,000 with non-market financing. What is its adjusted price?
Using GLA $36/sf and non-market financing $10,000: a 3,100 sf comparable sold for $277,000 with non-market financing; the subject has 2,800 sf. Bath count differences are not adjusted. What is the adjusted price?
Using garage $3,500 per car and pool/spa $12,500: a comparable with a 2-car garage and a pool/spa sold for $268,000. The subject has a 3-car garage and no pool. What is the adjusted price?
Using GLA $36/sf, garage $3,500 per car and pool/spa $12,500: a 2,600 sf comparable with a 2-car garage and a pool/spa sold for $264,000. The subject is 2,800 sf with a 3-car garage and no pool. What is the adjusted price?
In a neighborhood with declining values and marketing times over six months, what must Fannie Mae lenders confirm about the sales comparison analysis?
A house is a 4,000 square foot home in an area of 2,000 square foot homes. How must the appraiser treat this over-improvement in the sales comparison grid?
According to the Interagency Appraisal and Evaluation Guidelines, which items should an appraisal’s market conditions discussion include?
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A comparable went under contract two weeks before the effective date. What does Fannie Mae expect about a time adjustment?
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