Value is an estimate of a consensus of opinion from region to region. The sum is more likely to be the result of the calculation of the risk facing the average purchaser who is asking himself how much can they afford? When banks are avoiding to lend freely through out the country and the rules have changed for down payments,
when existing loans outweigh the values of homes by their estimations and appraisals which are creating a backlash on sellers with expectations but with failed results.
Offers are made in places for 50% of asking price while some properties are selling 20 % higher than asking price. There is no rhyme or reason in defining values. Each day that goes by sets different standards of lows and highs.The comps are not reliable for many that claimed to be sold fall apart and come back on the market at prices where just six months ago the lender refused. Working with international buyers with cash ready and willing both the realtor and buyer end up in frustration when a a property is found to their liking becomes a puzzle rather than a standard purchase.
Nice were the days when you saw a house you liked had the money to buy it with and closed on it in 30 days.
Now you play an offer like a lottery. let's make an offer and see if we can get it ? You are in luck if in most cases you get an answer to your offer. I stay away from short sales i go after free and clear properties where the owner has the ability to offer terms and hold the mortgage. Properties like these sell quickly and in most cases above the average price. Lot of investors buy with cash at a discount and flip it by holding a mortgage. It is becoming a strong market with excellent results.