Example: why you need to know the market

[Walt Payne]

Yesterday I lost out on a REO where my offer was about half of the winning offer. When I looked at my numbers I saw that they would have paid more than ARV. So I looked at the deal a few different ways to see if they might be planning a different strategy where that made sense. But nothing I looked at made sense. So I researched comps again. And there it was, the flaw in their numbers. Two houses that skewed the appraisal horribly high, if you didn't know that they are accross neighborhood boundaries.

This is yet another example of why it is critical to know your market, or to team up with someone who does.