Earlier today I sifted through 28 short sales closed within the last 6 months and 100 Bank Owned Properties closed within the last six months.

By and large they are selling pretty close to asking prices, with those prices dropping in small intervals and frequently while the home is on market.  The better and newer houses tended to sell short, while the older ones ended up in foreclosure and selling as bank owned properties.

The better values in many cases were the properties that were selling short of the original purchase financing, vs. those that were selling short of inflated appraised values at time of refinance after purchase.  Those based off true market value, purchase price, were selling close to 2008 assessed values.  Many were selling over asking price.

Simply being a bank owned property or a short sale did not relieve the buyer of determining current fair market value (which is pretty much at October 2005 levels per my previous post. 

For more info on short sales, see:

Should you buy a short sale property?

Why do Banks take so long to approve a short sale?

Q & A's from a Short Sale Class

http://www.raincityguide.com/2008/10/24/is-a-short-sale-a-bargain/

http://www.raincityguide.com/2008/11/09/short-sales-another-buyer-beware-aspect/

http://www.raincityguide.com/2008/10/25/options-for-homeowners-facing-foreclosure/

Distressed Propert Law WA