Overheard a neighbor say their 900 sqft bungalow sold for 50k over asking in 4 days

It made me wonder if we're all just guessing prices now or if there's actual science to it. Has anyone else noticed a big gap between appraisal numbers and what places actually go for?

2 comments

2 Comments

schmidt.amy16d ago

Oh geez, I'm not buying it at all. Appraisals are way more grounded in actual data than the emotional chaos of a bidding war, so that gap you're seeing is mostly just temporary panic from buyers. The real science is still in the comps and square footage math, not in what some desperate person decides to throw at a house on a Tuesday night lol.

barnes.brian15d ago

Totally agree with the "emotional chaos of a bidding war" part, @schmidt.amy. That's exactly what throws everything off because people get caught up in the moment and forget the actual numbers. I'd take it a step further though, appraisals are like the cold hard truth while bidding wars are just fever dreams. The gap you see is real, but it's not permanent, it's just the market catching its breath after a crazy week. Comps and square footage don't lie, they're the anchor that keeps everyone from floating away on hype.