Foreclosure in Burbank>Question Details

Mrs.solano, Home Buyer in Burbank, CA

made an offer on a bank owened house asking price 205k offered 249k the bank says they got over 30 offers ours

Asked by Mrs.solano, Burbank, CA Tue Jul 28, 2009

is one of the top ten but since our offer might be over the appraised value on the house the bank wants to know if we would be willing to pay over appraisal value on the home and if we would like to make our offer stronger we responded we were not willing to pay over value price havent got a response back yet what do you suggest is the best thing to do in this case and what the outcome may be.

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Mrs. Solano
The problem that we have in Burbank, and truthfully the entire SFV is that there is a shortage of inventory.
A balanced market is said to be a six month supply of homes. In Burbank we have about three months of inventory.

That means that eventually prices will start going up. However, particularly with the new appraisal procedures that came into effect in May, the bank is correct. The property may not appraise for the agreed purchase price.

If you look at the market trend for the last four years prices have been declining. At some point they are going to go back up, and in the long turn prices will continue to rise.

The bottom line is, if you like that home, and you need to buy now, and you are going to keep the home for at least 5-7 years, then think very carefully about what you do.
0 votes Thank Flag Link Wed Jul 29, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
If you're talking about a home in Burbank, CA I'm going to say that there's no way you're buying under appraised value. I think you might be referring to a condo. If you agree to pay over appraised value than be ready to come out of pocket and plan to live there a very long time. I have to agree w/ the other agents. I discourage my buyers from getting caught up in this auction mentality and overpay.
0 votes Thank Flag Link Tue Jul 28, 2009 first impression is something is carefull..why did you and 30 other people offer over what the bank asked for the house?

Do you think maybe the bank is pulling a scam??? ie..bait and swithc....bail=low asking price and the switch=attempt to get much much higher prices..

Better be carefull...Best ask for a real estate agent to have a look see...that's my idea..

Texas and other states has lots of these bank scams in the housing market...Troyi in Plano texas
0 votes Thank Flag Link Tue Jul 28, 2009
Don't purchase a property for more than it's appraisal value. You lose money! You will most likely have to put more money down to cover the 20% required plus the difference in appraised vs real value of the property. The house is no longer the bargain you were looking for so move on.
0 votes Thank Flag Link Tue Jul 28, 2009
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