Assets Under or Pending Contract
When reviewing the population of 11 assets in “under or pending contract” status as of July 31, 2017, 5 of 11 had a variance (sales price compared to the initial list price) outside of what RMS believes is an acceptable range.
• 2 assets were under or pending contract for more than 15% below the initial list price. The sales price for the 2 under or pending contract assets ranged from 76.2% to 81.8% of the original list price. Both are under contract as a traditional sale.
During our weekly calls, Altisource acknowledges many of those with a significant variance had an initial asset value that was incorrect and they “chased the value” on the assets. RMS believes the underlying cause of the value
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Based on our observations and more importantly on the review of assets during our weekly calls with Altisource, RMS believes on many of these assets, the condition and/or location of the property is a primary driver behind not only the large reduction in list price, but ultimately a sales price that will be well below the initial list price, all of which contribute to extended days on market and an increase in carrying costs incurred by the Trust. We believe a contributor to this relates to the Altisource process where the “listing agent” may not always be local to the property and may not have not personally visited the asset to assess the condition and the location, has not driven by the comps and generally may not be familiar with the intricacies of different neighborhoods in the area.
RMS believes that while it is important to list an REO above the identified asset value, it is equally important to recognize when a list price is too high and to make appropriate and timely adjustments to avoid additional days on market and days in REO. Doing modest reductions, which is an Altisource philosophy, even when indicators (e.g., low offers, lack of offers, no showings) reflect a larger adjustment is needed, increases REO timelines and carrying costs. List price continues to be a
As a group, team A collectively provided input and decisions on our MSRP in order to increase sales and attempt to gain market shares. Thus we wanted to understand the price sensitivity of the different target markets to set the appropriate price (Winer & Dhar, 2016, p. 248). We carefully reviewed the MSRP performance summary provided, starting with the first period, comparing it to the average retail price by way of the channel report (ARPCR). The original price for Allround was $5.29. At that time we were $.40 higher in price than our competition however the team felt that with the $.50 coupon discount we were offering, we would fall in line with other over-the-counter Besthelp who was our immediate
John DeRight & Judy DeRight both members of the long standing DeRight family based in Arlington, Virginia are looking to diversify their portfolio of investments and are contemplating investing in real estate to achieve their investment goal. Both are in a different stages of their life and are considering one of the four real
Market shall not exceed the net realizable value b. Market shall not be less than net realizable value reduced by an allowance for an approximately normal profit margin. Net Realizable Value Estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal.
After a few months of detailed scrutiny of the numbers, we were able to make pricing decisions more quickly by using the breakeven change in volume to set the new price. Based on our broad
2. You are also concerned that the Government did not obtain the greatest possible discount on sales over 1,000 total units. As a buyer, what can you do?
This is due to the fact that actual unit sales were projected to be 3510 units, while actual sales were only 3423. While this is an unfavorable variance within the flexible budget, in reality, it is a positive thing because there was an improvement in sales from the prior year.
* There is an adverse change in legal factors or in the business climate that could affect value of the asset
Of the 8 assets in eviction, 1 is currently in an occupied auction. 4 of the 9 had extended timelines due to the timeline to vest the property
The subsequent valuations are consistent with the Statement of Financial Accounting Standards no. 157, defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”
For current assets for each of the following three years, we are projecting the same percentage of 32% of sales. Assets that are constantly flowing in and out of a organization in the normal course of its business as cash converted into goods and then back into cash show small growth if any, in periods of time. The assets that are expected to last or be in use for less than one year will also show the small growth if any due their usage life expectancy. Because of these facts of our current assets, we will continue to use the projected 32% of sales as in previous years. Because this projection served correctly in previous years, we will again use it for the next three years. This decision is based on past accurateness and the consistency of the company.
This case investigates the factors that are affecting the sale price of Oceanside condominium units. The relationship between these factors and sale price has remained the same despite condo sale prices increasing drastically over the past 20 years.
This paper will seek to provide an overview of the real estate process and its affects on the real estate agent. An agent needs to be knowledgable about the steps required to make a sale, and the risks involved when the sale does not go as planned. Real estate sales require much of the agent, including sacrifices in their personal lives and in their financial stability. Agents must be teachable and willing to seek to see others succeed. A successful real estate sale consists of many steps, sacrifices to personal time, and an agent’s ability to work well with others while remaining incredibly flexible.
Note 3 touches on the category of cash and cash equivalents. Some of the cash equivalents are "available for sale securities." These include agency obligations ($20 million), commercial paper ($87 million), corporate debt securities ($78 million), government treasury securities ($606 million) and certificates of deposit ($64 million). In addition, the balance sheet shows $1.1886 billion in cash. There are stated at fair market value, which if it cannot be determined on the open market is estimated. The company values auction rate securities using an internally-developed valuation model. The company also notes that some of the "available for sale" securities are longer-term in
This was a result of a major chance in business conditions, or assumption of too much financial risk by the issuer.
According to this concept the asset is recorded in the books of accounts at the price paid for it and not at its market value. For example: if a business entity purchases a building valued at $15 million from a friend for $12 million, this asset would be recorded at $12 million and not at $ 15 million, because for the business entity the cost was $12 million and not $15 million.