Home Selling in 33437>Question Details

donnaattusca…, Home Buyer in Boynton Beach, FL

The Bpo came in at 99,500 Our realtor said it should be 60 We came up to 70 They came down to 97 Short sale We are stuck now We need ideas

Asked by donnaattuscany, Boynton Beach, FL Wed Jul 3, 2013

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I had something similar happen on one of my short sale listings and I sent the bank comps with all details including pictures that supported the lower price and the bank accepted the offer. Not all BPO's are done well so the listing agent is going to need to dispute the BPO.
1 vote Thank Flag Link Wed Jul 3, 2013
Well, First your agent needs to make sure they are pulling comps that are very similar to the home in question. Often times Foreclosures in an area can throw the CMA off a bit. If the foreclosures in the area outweigh homes that are not in foreclosure this might be okay.

It's worth asking the realtor where they came up with a $60,000 value from. I'm not sure about the full process there but when I've worked with Short Sales here the bank doesn't agree to a price until they have sent their appraiser out to appraise the home. Then they will counter with the appraisal value they come up with.

Determining the value of home can be tricky but in the end the Bank is out to get the most they can for the home - they are the ones loosing money on the deal. It's a tricky situation that can last for a while and it boils down to how much is the bank loosing.
1 vote Thank Flag Link Wed Jul 3, 2013
Hi Donna

If the BPO came in at $99,500 there must be comparable sales to support that price. Does your agent have comps that support his value of $60,000? If so, he/she might want to point them out to the listing agent to substantiate your offer of $70,000.

Good luck!

Barbara Grandolfo
1 vote Thank Flag Link Wed Jul 3, 2013
You can go at it with a Large Lender, as long as you have an appraisal contingency. What that means is that when the Lender does the appraisal (more weight than a BPO) the market value will be re-established. At that point both you and the sellers bank will agree on the appraised price or deal will be over, you get your deposit back and walk away. Yes, that amount will likely be higher than 70K...but it will be what the home is really worth. Now, if you think the home is not worth more than 70 then walk away and look for something else without wasting time. Prices and interest rate are both going up....this is no time to wait for "better terms", those days are behind. Of course, just my humble opinion. Was this answer helpful? If so please click on the "green thumbs up" or the "best answer".

Tony Vega
Antonelli Realty
1 vote Thank Flag Link Wed Jul 3, 2013
Donna,

Your realtor told you $60k was the current value, why would you offer $70K? This is not a used car, where you might pay a couple hundred more because you like the color. Even if they accepted 70K, what would you do when the appraisal comes in at 60k or 62k? Your lender will only lend on APPRAISED value. I think your time would be better spent finding another property.
0 votes Thank Flag Link Sun Sep 15, 2013
The BPO will gives the result the lender wants, not the seller or buyer. The lender will gives specific instruction to the agent what comps should use. If they request to use only Arm's Length comps, the value can be more than 20% higher than if he uses distressed properties. Most of the time, Arm's Length comp are flips and prices can be as higher as 40% or more than the "Fair Market value" . Both BPOs are valid because there are comps for both. Unfortunately this happen often in today's market, lenders are pushing prices up again
0 votes Thank Flag Link Wed Jul 10, 2013
Ok. A little confusing. BPO is $99500. You offered 70. They countered $97k? Do you know what this home is worth if there was no short sale? Is there repair work to be done? How much does the seller owe? Is the seller or the lender rejecting the offer?
0 votes Thank Flag Link Wed Jul 3, 2013
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