Trulia Voices Real Estate Q&A

Helda Morgan
Home Buyer

What is a fair counter offer?

Sat Jul 26 2008, 17:38 - All locations - Home Buying - 2 answers

I'm not sure what BPO means. The house we are looking at is only 4 yrs. old. It is a REO w/ foundation/drainage issues that can be repaired. Estimated cost is $25,500 for the foundation and $30,000 for escavation & drainage. It is in a very good neighborhood $400,000 homes. It originally sold for $429,000. The Net RMV is assessed at $367,257. It sold in 2007 for $306,195. It has been on the market since October, 2007. We offered $199,000 knowing we could do some of the repairs ourself. We got a counter offer from Country Wide Lenders today stating that they would met all our requests in the offer and do the repairs for a purchase price of $261,000. We were hoping to see the price closer to $250,000 or lower. The house is beautiful- but there are some very serious issues. What would be reasonable counter offer?

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Answers (2)

FIRST: Parker

Christine Losch…
Real Estate Pro
Chandler

Sat Jul 26 2008, 18:14

BPO stands for Broker Price Opinion and this is a price estimate that the lender orders when an offer is received on a bank owned property or short sale. The BPO is completed by a realtor hired by the lender to complete a comparative price analysis. The lender uses the BPO to ascertain what the property they are holding is currently worth.

As far as your counter offer, you sound like you could use a realtor negotiating on your behalf. A Realtor could give you background data and advice on your counter. You may wish to counter with the price you were hoping for and see what happens.

Good Luck!

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