Are any comps relevant? Changes to REI. Thoughts?

[Eric M.]

I admit that I am sort of frozen right now in my REI. Maybe I am too fearful but I don't see anybody on these boards talking about the credit crunch much and how it will effect their ability to resell the homes they are trying to SS.

Or else, you somehow think these lenders in trouble are going to help us SS investors get more deals approved. Yay for us, right?

This might be true but do we want these deals approved easily? What does that mean when the lenders all the sudden start approving your low offers? Do you really want them anymore? Or is it a sign that our offers are too high?

Does everyone realize the environment your potential buyers are in trying to get a mortgage? In the past few weeks, rates are dramatically different but it doesn't seem like we have yet made dramatic changes in our valuations of property. How are most people going to buy your flip at the price you expect if their interest rate is 2 points higher?

How can a comp from even 60 days ago be relavant if that buyer was able to obtain a 7% mortgage and today it is 10%+? That comp can't be relavant can it?

How about the 1 year old comp (come one you know you guys use them that old) where the mortgage could have been 5.5%?

I think that virtually every comp is now irrelevant because the mortgage rate environment is so different.

Maybe I am chicken little who thinks the sky is falling but if we don't reevaluate the deals we have made offers on already, we may end up with approvals we can't resell.

I think prices in general have to adjust down big time in one click just like mortgages adjusted up in one click.

Yes, maybe the loss mits will not agree with our new valuations just yet but such is the nature of SS.

The great deals always come at the END of a crises. People who stand in there at the beginning of a crises get run over. Are we at the end or the beginning?

Is there an avalanche of homes coming that we are ignoring?

Thoughts?