Check recent comparables in Santa Clara.
Is this a recent BPO or an old one being confirmed by a listing agent from 6 months ago?
The market has moved up.
If it is a current BPO then a bank is unlikely to take less than $740K, if the home needs
work, then an offer with inspections need to be forwarded to an Asset Manager to review.
An asset manager does not know it needs work, unless the seller or the listing agent has
done inspections. If you are at BPO, and a Short Sale clearly the seller has no funds to
do inspections, so that you can get a reduced price home.
Do inspect and turn in a proper offer with inspections by working with your agent.
Due diligence is required, or buy it after it forecloses.
Homes on Julie Ct and Davis St. are just great.
A BPO is just that....it's a broker price OPINION. These opinion are subject to be challenged, provided you have accurate information that further clarifies the subject home's value.
The amount you should offer should not be a random amount based on some magical percentage but concrete factual information that is documented and available. We have challenged and had met with success in changing the BPO. It's all a matter of investigating the records and presenting it in a manner that is understandable.
Always present an offer that you can also provide the records to substantiate.....it may make the difference you are looking for.
What does your agent come up with in their BPO? A BPO is no more accurate than what I or 10 other agents do in a comparative market analysis. When I submit an offer for a short sale, I submit my own analysis to justify our offer.
I offer in the low range of where I think it could go if it wasn't a short sale. Waiting for lenders to decide knowing that they may reject the offer of even foreclose while we are waiting has to be worth something to a patient buyer.
I suggest you have your agent do their own CMA and you decide a strategy together for your offer.
Before we can answer this question, please tell me, has your offer been accepted by the seller? Are you in contract and now the bank has completed its BPO, obtaining a price for $740,000? Or are you considering the purchase of a short sale home, and the listing agent is telling you that the bank's BPO (which it probably had requested for a previous buyer) is $740,000?
Most importantly, while we can all conjecture what to do next, your best and most accurate answer will come from your real estate agent. Since you're considering a short sale, if you do not already have an agent, I would very very very strongly suggest that you get one to help you in your short sale, and for your own protection, I would advise that you not use the listing agent as your short sale agent.
Talk to your agent to review the comparables for your area. If you're already in contract to buy a short sale home and the bank is asking for $740,000--at least here in Santa Clara County, you have only two choices: 1) agree to the new price or 2) decline the price and cancel the contract. Banks are not negotiating on pricing here in the valley since there is usually other buyers for the property.
Good luck and please get an agent or consult your agent for help!
Grace Morioka, SRES
Area Pro Realty
Tel (408) 426-1616
Listings at 1.5% of sale price, rebates to buyers!
I have had cases where the initial BPO was way higher than what any buyer in their right mind could or should pay. As time passed, the lender softened their position. In another case, the 1st BPO was challenged and a 2nd BPO legitimately came in 15% less than the inaccurate 1st BPO.