Hi folks. If you handle Short Sales then you know the importance of the BPO (Broker price opinion). Lenders heavily rely on the opinion of a neutral agent when it comes to placing a value on the short sale property. So it's important that the agent doing the BPO is accurate.
Of course we all know that this is not always the case. Some BPO agents are good at what they do and some suck.
Yesterday I was doing my weekly follow up on a Short Sale file. This particular Florida Short Sale has two liens on it so two BPOs were done last week. As usual when I speak to the lenders I "make nice" with my goal being to get as much information as I can about the file. I was able to get both lender representatives to give me the BPO values.
This particular property was placed on the market priced at $85,000 and a purchase price of $87,750 was negotiated. This purchase price was spot on with recent comparable property sales so I figured there would be no issue at with the BPOs.
Ok are you ready for this? The BPO for the 1st lien came in at $59,000. The BPO for the 2nd lien came in at.............$149,900!!!!!
Is that comical or what? One property. Two different values. How can there be a $90,000 difference from one BPO to another on a property only worth $87,000? Maybe lenders need to get smart and pay the extra cost to have a full blown appraisal done.
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Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.
Want to find out more? www.CentralFloridaShortSales.com
***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.
Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales, Orlando Florida Short Sales, Celebration Florida Short Sales, Winderemere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.
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Good morning Bryant,
I'm sure it's frustrating, it's tough enough going through these sales without the challenges you mention. I've seen lots of posts about short sales and how BPOs affect the outcome of those sales. I guess I've just been very fortunate, the last 3 short sales I did, no BPO was ordered. They all ordered appraisals. And I've been told I have a 4 leaf clover in my pocket because they have all come back within $2-3K of the offer price and we've been able to close all 3 deals. So maybe some banks are waking up to that necessity.
What is frsutrating is mose BPO's are exterior only , so you are really guessing at the value without an interior look
Opinion of value is just that, an opinion, of which everyone has one. I agree with comment #2
Bryant - With that type of discrepancy, perhaps an appraisal is in order. Wow! Like the new pic by the way:)
Wow, what do you say to that? Makes you wonder who it was and what they were thinking. $90,000 difference? Really???
Bryant, like you said "Some BPO agents are good at what they do and some suck." I'll go ahead and attach that "suck" badge to the second, way over priced BPO guy.
BB,
I'd agree with you on this one...about a real appraisal. I did have one though not long ago that was a full-flegded appraisal, it was quite refreshing and worked out well for everyone.
Here's one just as good as yours: Had an offer (B of A) at 319k. Counter offer in Equator (from B of A) came in at 198k. Called my executive liaison to make sure that this wasn't a typo. She looked into it and said that 'no', the BPO came in at 198k, so they would refuse the 319k. Talk a bout a negoative impact on neighborhood values.
Melissa, I've heard of that happening more often now. Crazy!!