Adventures of being a home Buyer in this Market

Here's a recent story I was involved with.  It has to do with a Bank Owned/Foreclosure/REO (all three of those terms are basically interchangeable. REO the most commonly used term by Realtors. It stands for Real Estate Owned, meaning it is property that the bank owns). A lot of people out there hear about REO's but don't really know how they work. Well unfortunately in Sacramento, the REO's are a large majority of our market because of the high volume of foreclosures in recent years. Well, the banks aren't the greatest at dealing with selling properties. Once they foreclose on the house they have an appraisal done on the home to figure out the value and then list the property with a real estate agent. However, one very recent trend is the asset manager for the bank is deciding to list the properties for much lower than the values that the Realtors & appraisers are suggesting to them. One particular property was listed near $170,000, much lower than its true value. Within 4 days the listing agent had received over 30 offers. The recent sales in the area supported a much higher price. Eventually the winning offer went for $220,000.  As part of the buyers' loan process, they are required an appraisal by the bank that is going to be lending them the money.  The appraisal came back at $222,000! That is over $50,000 than where the bank decided to have it listed at. This is one of the major factors right now with so many properties having multiple offers over list price. Many of the banks are not taking the time to understand each property & market & have the home listed correctly.  It's an adventure out there for each buyer on every bank owned home. You can't trust the list prices right now.

  Flag content
Report a Problem

Please enter a valid email address.

Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 19 2009 - Sacramento
We think we've answered this question for you!
Related Discussions
Land/Lot of 2 Acres in size
Profile picture for Joshua Stein
Latest reply by Joshua Stein
October 30 2011 | 3 answers
Forget the Stock Market. Buy a House
Profile picture for David Hoggatt
Latest reply by David Hoggatt
August 26 2011 | 1 answers
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 2107 22nd St, Sacramento, CA Home For Sale
    2107 22nd St, Sacramento, CA 95818

     For Sale: $359,900

    • Beds: 3
    • Sqft: 1480
    • Baths: 1.5
    • Lot: 8712
  2. 5028 Kokomo Dr, Sacramento, CA Home For Sale
    5028 Kokomo Dr, Sacramento, CA 95835

     For Sale: $425,000

    • Beds: 5
    • Sqft: 2700
    • Baths: 3.0
    • Lot: 4765
  3. 2410 Post Oak Ln, Sacramento, CA Home For Sale
    2410 Post Oak Ln, Sacramento, CA 95825

     For Sale: $165,000

    • Beds: 3
    • Sqft: 1363
    • Baths: 1.5
    • Lot: 1537