Posted by Barry (FL) on August 13, 2003 at 23:15:03:
It’s called a BPO, Broker’s opinion of value. You don’t think they’re going to take your word for it?
Short Sale Surprise - Posted by Gary (Ca)
Posted by Gary (Ca) on August 13, 2003 at 23:07:41:
After searching many of the archives on short sale, it seems there is a consensus that providing bad pictures of the property, a hardship letter, and financial info of the borrower will be some of the popular requirements from the lender before they consider a short sale. However, while talking with a lender yesterday about their short sale requirements on a property I am after, they indicated that they will have an agent contact me to inspect the property themselves! They went on to say they would not discuss their appraised value too. Has anyone run into this before? I wonder if lenders are resorting to this more instead of relying just on what is provided to them by the new buyer.
Re: Short Sale Surprise - Posted by Brent_IL
Posted by Brent_IL on August 14, 2003 at 17:43:25:
Brian stated the best way to influence a valuation.
Like all of us, RE agents take the path of least resistance. If you hand the agent four or five low comps and one really high one that isn’t as closely matched, the agent is faced with a choice. He or she can verify your low comps in minimal time and soon have a property the he can sell easily and earn a commission. Or, the agent could spend hours searching for close comps and wind up with a valuation that will make it hard to move the house. Higher commission perhaps, but less sure.
What to do?
No surprise - Posted by B.L.Renfrow
Posted by B.L.Renfrow on August 14, 2003 at 12:02:28:
That is standard procedure. Contrary to popular opinion on this site, lenders may not always be logical, but they aren’t stupid either. Certainly if you were in their shoes, you’d want an independent confirmation of value.
In addition to making sure the homeowner doesn’t suddenly decide to spruce up the place before the BPO, it doesn’t hurt to provide your own comps to the agent – low ones, of course.
Brian (NY)
Re: Short Sale Surprise - Posted by Larry (TX)
Posted by Larry (TX) on August 13, 2003 at 23:50:28:
Also I tell the home owner not to do any regular cleaning or maintanence around the house a week prior to the BPO agent coming out. That away when they do come out and ispect the house, chances are the houses asthetic appeal is deminished a bit.
HTH
-Larry