I would only add that market conditions prevail - be it in a inferior community (appraisal) or not and if there are comps to support your offer. The listing agent can submit their own comparables to justify the purchase contract as well. The extent that the listing agent 'goes to battle' with the lender can be the deciding factor. On the flip side, have you asked for credit for closing costs? If so, and you are coming in $100K under list, there may be a possibility of getting the proverbial 'back burner-hurry up and wait' treatment from the lender. Good luck.

Arturo Shivers, Realtor
Keller Williams Realty
760 Camino Ramon, Suite 200
Danville, CA 94526
Office: (925) 855-8333 Ext. 272

Well that would make a difference but all of the short sales I have listed have had an interior BPO carried out so you may be worrying unnecessarily. Who told you there would only be an exterior BPO?

What does your agent tell you?

Bernard Gibbons

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Bernard Gibbons, Realtor, e-PRO Certified Internet Specialist
J. Rockcliff Realtors, 15 Railroad Avenue, Danville, CA 94526
Phone (925) 997-1585
bernard@bernardgibbons.com

See all homes for sale in Contra Costa and Alameda Counties
at http://www.BernardGibbons.com

Bernard and Carl, thank you for the response.
I guess I need to add further information.
the reason the listing agent took our offer was because the house was damaged and lots of things to be repaired.
I was told that the BPO is only based on the exterior of the house.

and the damaged (just from the visual inspection is about at least 50K, we do not know what other damages without complete professional inspection.)

thanks

Carl's answer is spot on but even discounting how banks work you really only have to apply common sense to the situation. Why would anybody sell a home for $100K less than it is worth? And the BPO, by definition, is a close approximation of what the home is worth.

Also remember that banks have a fiduciary responsibility to their shareholders and that would include using their best efforts to get a realistic price for any assets they dispose of. Banks do not gve homes away, although they often sell them for around 5% below what they are worth in order to achieve a sale quickly

It seems amazing that your agent wrote an offer $100K below the BPO price with the expectation of getting a sale agreed anywhere near that figure. Did your agent not carry out a market valuation on the home first? If so, you should have had a good idea of what price the bank was likely to accept .

Bernard Gibbons

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Bernard Gibbons, Realtor, e-PRO Certified Internet Specialist
J. Rockcliff Realtors, 15 Railroad Avenue, Danville, CA 94526
Phone (925) 997-1585
bernard@bernardgibbons.com

See all homes for sale in Contra Costa and Alameda Counties
at http://www.BernardGibbons.com

Hailey:

No one knows for sure, only the bank.

However …

Banks typically try to get within 5-7% of the BPO value. The price the seller agreed upon means absolutely nothing in a short sale – the bank is the one who decides the final price. Short Sale listing agents typically place short sales on the market artificially low to get attention and offers. They need an offer from someone to get the process rolling. The price of the offer doesn’t even have to be close to reality – they just need an offer.

Once the BPO has been done, things usually start moving along. You can expect to get a counter from the bank that will tell you where you really are.