When I heard this from a RE agent this am I about fell off my chair! This was in response to my question about a Short Sale if they had any offers and if they were over list price. His response was 5 offers 3 all cash and all above the list price. well that took care of my buyers chances with a FHA loan. I said well I comped the house and thought the list price may still be too high. His response was a deer in the headlights or Dejavu back to the past era 2004 moment, he proudly informed me "it is worth what a buyer wants to pay"! I said "it is worth what the buyers lenders appraisal comes in at".
Was it not that attitude that started the whole RE Bubble? I realize we are at this moment in a little market up tick, but to say this would imply all buyers should just offer what ever ridicules amount they can and then be responsible for the difference out of pocket for what the appraisal comes in at and what they offered.
I really thought we were finally out of the dark ages with Real Estate. A time when a homes value anywhere can be pinpointed down to the penny. But I guess I was wrong! Now I see homes listed 40-70 thousand over current values because home owner Joe thinks his house is that much better that Stan's down the street, that just sold yesterday, which happens to be the SAME SF and same Tract. What? That is not the truth? We really don't know the value of a home? It is still the Wizard of Oz who determines who's house is worth what? So all this technology is worthless?
I don't know about other Realtors but personally I don't want to list Joe's house and have to explain to my peers why I have listed a house 40K over it's value! I have better things to do with my time.