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YIPES Reader Doug Smith from Southwest Montana recently took a class in Northern California (Petaluma) and asked a few Northern CA appraisers about YIPES when he saw a bulletin entitled "Housing Crisis in Silicon Valley." and suggested YIPES as a name for the trend. Below is his info on YIPES. "YIPES is the next new appraisal acronym. YIPES labels the trend where list/sell ratios exceed 100%. I understand this is reaching crisis proportions in Silicon Valley as houses are bid up over listing prices." "The trend and second level acronym (yuppie is already an acronym) is "YIPES" or "Yuppies in Pursuit of Expensive Shelter." Yipes is listed on the URAR sale grid as "List/Sell Ratio " and is an adjustment that is calculated after separating the site cost by matched pairs of non yipes sales and yipes sales. Yipes is expressed as a percentage increase by square foot of GLA. In a fast moving market, this will enable the appraiser to adjust sales upward for yipes instead of applying a time adjustment. A matched pair analysis must be done to determine if a list/sell ratio adjustment is required for site costs. In some cases, particularly in Silicon Valley, site location may require a percentage adjustment that might exceed the adjustment required of the improvements. In the case of a site adjustment, the buyer's employers' NASDAQ company symbol of each of the comparables must be shown on a location map." |
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