“So the goverment again has a vested interest in creating the bidding war to raise comps”
The government does not create bidding wars. In some cases the banks create a frenzy by intentionally pricing a home below market value.
Yes, the government supports have raised market values but if a property is priced at or slightly above market there is no bidding war. If you are constantly getting outbid on REOs then that is a good thing because you have gotten good at spotting homes priced under-market. Keep taking your shots down field and something good will happen. This is a very slow time of the year.
Also keep in mind that it can be hard to get a great deal on a home with a “hot” list price because the market instantly responds. The best deals I am seeing are the over-priced ones that languish to the point where the bank just throws in the towel.
