Asking Prices - Are they relevant anymore?

In this day and age, especially where there are significantly more short sales, bank owned, properties, and folks adjusting to new market values, listing prices appear to be all over the map. We see short sale asking prices hundreds of thousands below the mortgage balances, and even more importantly far below what the banks will accept at the hope that the eBay effect will bring just one buyer into the stratosphere.  We have some seller's that are still holding on to historical highs, listing ranges all over the map.

You cannot fault any buyer's who want to get the best deal on a purchase, and wants to jump on the exact comp that is selling for $200k less than the property next door, and even us agents do a double-take when we see something that just might be too good to be true.

It is all just a matter of homework and a leveling out the playing field, and de-code what is real vs. fantasy.

Sold comps, and even more so, appraisals, do and always will tell us the value, and asking prices are exactly what they always do the 'ask'. Not much different from your 16 yr old 'asking' if he can borrow your car, at age 16, you can always 'counter' and tell them they can borrow it age 25.


Also that bank owned gem at 80k below market, after replacing all the flooring, new kitchen, updating the bathooms, paint etc, just might be fully remodeled normal sale right next door, and you do not have to live through construction, and consider how you are going to finance that extra 80k over and above your mortgage payment.

I am a big proponent of buying homes where you can ad value, but it has to be built in the price, or all bets are off.  

There is a lot of value to be had in the market, and most feel it is only in the short sales. Short sales are doing their part to lower market values, and often time there are great values in normal sales as well.