It's a computer algorithm, so it can't always pull perfect comps, but in most areas, it does a pretty decent job.

My best guess is high frequency traders (a.k.a. computers) making algorithmic trades based on current positions, not the fundamentals of the companies or the economy. 

Many of the guys on the fire department have trades outside of the job, and I utilize many of these guys as my subcontractors, and some as my personal employees.  

@Sandy UhlmannYes, the IRA can purchase a home, have it repaired, and resell the home at a profit.Do check with your IRA provider (and tax advisor) next week and ensure that you get a good explanation of the rules and exposure to UBTI taxation that such an activity can create.You or a disqualified party to the IRA may not do any work on the property.Flipping is a dealer activity viewed as a trade or business.  

IE very low value assets IE rentals in Urban cores that trade for the value of used auto's  ... so for sure I can see instances were agents that have a 10k listing are only doing the minimum you would go broke spending all your time on those deals as an agent.And the unlicensed wholesalers have pretty much taken up this niche of helping sellers out of these assets... as its really an unwanted product for most brokers.Thats whats great about this industry its diverse always changing and very much regionalized... what a lot of folks don't really comprehend though or are short sided on..

Remember, there are good inspectors and ones that couldn't hack it in the trade also.  

We actually loan like this as well, but have a process we like to follow.Jeff: without giving away any market or trade secrets, how are your borrowers finding props at 75% of ARV these days?  

Or do they do some automated computer appraisal instead of a real appraisal?

If you buy 2 multi's with the money, you can trade them up for a small apartment complex after 3 years by reinvesting the cashflow, appreciation and equity paydown.

You earnest money will be 100% safe if you learn some of trick of the trade.