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What if your Short Sale BPO is over-inflated?
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The Short Sale BPO is critical to the Short Sale process. Remember that your Lender and the Investors above your Lender do not know you or your property..it is simply a file # to them. When I submit a Short Sale offer for approval, they order a BPO (many order a full appraisal). A BPO is a Brokers Price Opinion. A BPO Agent is paid very minimally ($50 or so) to create one of these reports..needless to say, they may not spend a ton of time on each home!
There are several problems with BPO’s for Short Sales.
1. The Agent is not a local Realtor and doesn’t understand the area/development of your Short Sale. They may use comps that are NOT comparable and mess up the FMV (Fair Market Value) of your property.
2. The BPO Agent is also an REO Agent (Foreclosure) and may even work for the Same Lender in their Foreclosure division! Conflict of Interest? Yes. The Agent may want the home to go to Foreclosure so he/she can get the Listing!
3. As mentioned above, the BPO Agent doesn’t spend much time on the property..
What to do? Have an experienced List Agent is most important. The List Agent will try to re-submit supporting comps for the offer and other financial documentation to support the Investors accepting the offer. If no success..sometimes, it’s just best to close the file, allow 60 days to expire (BPO’s are good for 60 days), then re-submit a new offer. A different negotiator, a different BPO and you’re in!
Crazy..yes. But sometimes, you just have to go with the system until it is smoother. Every year, Short Sales become smoother-no matter your Lender. Hang in there and trust your List Agent!
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