Contract Prices

[KenAZ]

Anyone else finding that homes are selling way higher than the comparables support? I have been cutting contract prices like never before. Even the realtors can't find comps to support the contract prices. I have noticed that it is mostly out of state buyers.

I cut one by over $100,000. Comp 3 houses away sold for $140,000 below the contract price of the subject. I had another one today that sold for about $50,000 above market.

 

[CindyR]

yup - drowning in VA tidewater here. and yes, I see a lot of out of state buyers on those contracts.

 

[KenAZ]

Whew, it's not just me!

 

[CindyR]

And just what we need in the paper today about Phoenix home prices soaring in June... Don't use any of those comps from may

http://www.azcentral.com/story/mone...enix-area-home-prices-take-big-leap/29887315/

 

[KenAZ]

No Kidding!

I have noticed that listings are scarce, so they are starting the old "Bidding War" contests.

 

[CindyR]

No Kidding!

I have noticed that listings are scarce, so they are starting the old "Bidding War" contests.

that too. worked on one this morning and they are not going to like the 1004-mc as there are no actives. sorry. there are none.

 

[factsandtruth]

Ive been cutting contracts myself..

 

[KenAZ]

Please explain your refusal and reluctance of providing listings on the 1004mc. . . . NOW!!!!

 

[Mike Kennedy]

BPOs and CMAs are quite often "top-heavy" with emphasis on other LISTINGS. So much for "knowledgeable" buyers. Being led like bulls with rings in their nose and gleefully following the "lead". one more reason Contract Price Bull$eyes are Irrelevant. Truth will out when they attempt to refinance or sell 2-3 years hence. Same as the last Bubble burst. Prudent potential buyers should ALWAYS contract directly with experienced local Appraisers who do not have a vested interest in "doing the deal" - PRIOR to making an offer.

 

[erockinaz]

I've had several fall short of the contract prices over the past month. I give each realtor a chance to provide comparables for my consideration, and several of them tell me that they cant find closed sales at that price, but have pending sales that do. If an overly optimistic agent with a commission on the line can't support the contract price, how can they expect an appraiser to do it.