No doubt, it is a common situation. The BPO comes in higher than the price you have your home listed for. But normally, the bank is willing to negotiate a bit.
So... this is my 3rd deal with Chase in the past year and I am getting the feeling they don't negotiate off the BPO value.
I have had this home listed for about 4 months with few showings and NO interest. The original BPO came in at $150k. I am listed at $139,900. I challenged the BPO and remitted a dispute CMA with all the comps. Two months later, they came back and said their value still holds of $150k.
I asked if they could give me a rule of thumb regarding BPO-to-offer value and my negotiator said that they want the BPO price. Not a penny less. This could be a negotiation tactic, but I don't even have an offer yet. I asked the negotiator how I am to get an offer for a higher price than what the home won't even currently sell for. She referred me to the other 'available options for the homeowner' (eg: DiL).
From your experience, are you seeing Chase stick very closely to the BPO value? I know I can't get anywhere close to the BPO value. I don't want to let this one go, but I also don't want to spend 4 more months if I am sure the offer will be declined.
Any thoughts?
BTW: This is a FNMA loan.
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If your really hopeless .. give them the satisfaction of 30 days at $150k then lower $10k every 2 weeks until you produce an offer or reasonable showings. Sometimes they just have a process/system to follow and you just have to play along.
Your best "dispute" is to order an appraisal yourself to prove the value! THAT will get their attention and regarding Chase being hard and fast at you meeting the BPO 100% -- I have closed many with them and I do not believe that to be true.!...
I had a similar situation with a high BPO done by an inexperienced agent. I asked to contest the BPO, they said no, so I asked how long the BPO was good for, and they said 4 months. I laughed because an appraisal is only good for 3 months!
Juan is right. Showing the lender the appraisal does the trick. However, most buyer's lenders won't do the appraisal until they see an approval letter, but it might be worth the risk to the buyer to just go ahead and pay for the appraisal to save thousands on their purchase and/or not lose the purchase in the first place.
Escalate.
it is NOT Chase, but rather whomever their investor is. I have done less than 90% of BPO many times this year, as long as Freddie was not the investor. The only thing that can cure a vFreddie value is time. Wait for the 90 day bpo life to expire then ask for another one, and meet the bpo agent at the property and sell your deal.
Drew,
I had the same problem with Chase and FNMA. I had a house worth $72,000 and had 2 BPO's come in at $30,000 apart!
One at $75,000 and one at $105,000. I disputed the BPO at $105,000 and I quickly got nowhere. They were not budging from the $105,000. All day long, I could not sell this house at $105,000. I had 5 showings in 6 months with the home listed at $80,000. I withdrew the listing and have referred the seller back to Chase for other options. I am helping the seller prove to Chase that the short sale was a failure and why with backed up MLS stats, listing history, Comps, etc. Sellers are 1/2 way through the process of DIL.
Hope this bit of information helps you.
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