Home Buying in Frederick>Question Details

C.quinones, Home Buyer in Frederick, MD

What if the value that the bank obtains (BPO) is a lot lower that our offer?

Asked by C.quinones, Frederick, MD Thu Sep 27, 2012

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5
Akil Walker’s answer
Just because the BPO comes back lower does not mean the value of the home is lowered. An appraisal will be done by your lender to ascertain the value of the home as well. BPO are used by banks to determine a price point but it does not mean it is correct.

good luck
1 vote Thank Flag Link Thu Sep 27, 2012
BPO's are not a very sophisticated mechanism for determining value, especially if the house is somewhat unique. The bank has no obligation to share the results of a BPO with a buyer. If it's lower than your offer I'm pretty sure you won't hear a thing.

If you're concerned about your offer, discuss those concerns with your agent.
1 vote Thank Flag Link Thu Sep 27, 2012
Your banks appraisal is all that matters on value. They won't see or care about the current lenders BPO.
1 vote Thank Flag Link Thu Sep 27, 2012
I'm interested in how you would know the results of a BPO?
The Banks just disclose this information.
0 votes Thank Flag Link Thu Sep 27, 2012
I don't know the results of the BPO! I'm just asking a question. I like to know where you read that I knew the results of the BPO?
Flag Fri Sep 28, 2012
Dear Mr. or Ms. Quinones,

Your offer should include an appraisal addendum that will protect you in the event the appraisal, not the BPO, is lower than your offer. Appraisals are required by lenders.I assume you are not paying cash?

Please feel free to contact me if I can be of further assistance: petert@machomes.com or 240.529.0120.

Peter
0 votes Thank Flag Link Thu Sep 27, 2012
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