Reading Lenn Harley's amazingly 'on point' post today got me thinking about something that keeps churning in my brain. If prices on homes should be $300,000, how in blazes did they get to $500k and $600k in the time it takes to eat a cookie? I'm really serious about this.
What do they tell you about appraisals for homes? Here they say, you better expect your home to be within one precent (two MAYBE) of the comparable sales in the neighborhood.
How did these homes pass appraisals or am I missing something? I believe in a free market economy; I surely want my sellers to get the best price they can for their home; but how were homes able to skyrocket the way they did?
Did appraisers turn the other cheek? Or am I missing some new fundamental principle of economics here?
I can tell you that I have never had a home sell that was 25 percent over the price of the last home sold in a neighborhood. Seriously!
I would love to hear all your comments, this is one of those thoughts I remember at 2am (normally) and then say okay, I will have to ask on a post. I finally remembered! Peace Out
Copyright 2007 3C