Even though the inventory has subsided it is still a Buyer's market because of the short sales and bank owned properties. The affordable pricing  makes it an ideal time to purchase land or a home. If the home you choose to buy or sell is not in this category the price is still usually at fair market value. Short sale prices along with the bank owned properties are influenced by the lender as to what they will accept. The appraisal on each property is determined according to the last three months of SOLD homes/land in the area. It is important to find an agent who has been trained to handle these types of transactions so always look for a realtor with the CDPE designation. This designation has helped me better serve my clients in all real estate transactions by teaching me the entire process of a short sale. I look forward to serving all your real estate needs.