Last Friday, I listed a property East of Federal HWY in Pompano Beach. A 3 BR - 3 bathroom, 2,360 total sq. ft., 2 car garage remodeled in 2007 in 2007 with new gorgeous custom designed kitchen, hurricane impact windows and doors, new vinyl fence, pool completely redone with waterfall and outside pool patio done with sealed Travertine pavers carrying inside the new hurricane impact frame screened-in patio and tons of other improvements. I presented seller with comps based on recent sales. My seller bumped up my suggested price by $25K and I listed the property.
An identical model home, 3 houses away from my seller is very clean, with 3 bedrooms, 3 bathrooms, a plain pool, 2 car garage, but it has only a new kitchen. That house is listed $20K more than mine and it has been on the market for 5 months already and is still for sale.
My house had 15 showings in 3 days and my seller received signed 3 offers. Lets say, Katie, that if my property would have been priced $25K to $40K more that it's immediate competitor that I mentioned above, you would probably have not wanted to see my seller's house in the first place and you would have probably have been the first buyer to present an offer based on the comps that your agent would have shown you which offer would be considered by my seller a low-ball offer and reject your offer.
Barbara Easton-Irving described it best below: The seller's agents provides comps and the buyer's agent also provides the same comps (unless one of the two agents fabricated the comps).
Besides, the inventory now is very low making the selection extremely difficult for buyers which is like going to the biggest sale of the year at Macy's one weeks later. What's left on the shelves, nobody wants, anyway. The properties that don't sell now is because they are priced too high and their quality or lack of improvements are mediocre. And because of that market, it is very difficult and frustrating for buyers.