Ever come across comps where you go "people actually pay this much???? why???"

[CK Hwang]

Hey everyone, so I recently came across a property in a ok town (but a nice part of town), which I was thinking of buying to do a fix and flip. I've never flipped anything in this town before. I ran the comps, and got a set of comps from a realtor I work with a lot, and they came out to be similar numbers of around $699K.

I was quite surprised at the ARV of $699K because I didn't really expect people to pay this much for this area but checking and rechecking the comps both by myself and by the realtor several times gave the same number. In my mind, I am going "No way I would ever pay this much for a house here of I was a buyer."

Have you guys ever come across a situation like this? If so, how did you handle it? Did you trust your comps and just went by the numbers, or did you tend to trust you gut instinct and forgo making an offer?

It's a little bit of a dilemma for me because numbers don't lie, coupled with my lack of experience and understanding of this area means I could be under estimating the arv value. But at the same time, it's a little hard to wrap my mind about spending that much on a 1300 sqft house in that particular town even though the comps say otherwise. Any advice on what to do?