Hey guys, long time peruser first time poster here...

 

Heres my situation

 

I made an offer on a short sale on March 8. The listing price was at 270k, so I offered 290k. My realtor told me that my offer was considered the best (considering it was the highest and I got a preapproval from Bank of America).

 

May 8th, a 2nd BPO appraisal was done on the property (I'm not sure what happened with the 1st appraisal). From May 8th until now, the property has almost been put on foreclosure auction (I had the listing agent postpone it twice). The starting bid on the property was about 271k (not sure if this is vital information) 

 

So today June 15th, my realtor informs me that the BPO came out to be 370k and the bank wants 350k for the house. I'm thinking, wow this appraisal is way too high, given that the 7 most recent sold comparables in the area average about 312k (not to mention the lot size of each comparable is 1200 sq ft, while the property I want is like 1060 sq ft)

 

 

I have a bunch of questions to ask, but I guess I'll start with these...

 

The listing agent already sent the list of comparables to the negotiator, is it possible that the negotiator will lower the price to something more towards market value? (I'm assuming the BPO done on the property was performed without factoring in the comparables and other things)

 

In the case that the negotiator doesn't budge on the appraisal, what range percentage do you think I could offer on the house so the bank would accept the offer on? (I'm wondering if offering 90% or so on the asking price would be sufficient).

 

How long does it take for a negotiator to send a reply? The listing agent sent the comparables to the negotiator this afternoon.

 

Much thanks!

Tags: BPO, appraisal, sale, short

Views: 973

Replies to This Discussion

Normally they will take 90% of BPO value. But sometimes there are timelines that they have to adhere to. For example, one lender would not look at anything under 95% the first 10 days of establishing the price.

Personally I would start at 85% (presuming you think this is worth it) and work up to 90% if necessary.
I'm dealing with the same issue in the Islands in Gilbert Arizona. The BPO came in 130k higher than the current offer on the home. The agent that did the BPO included some waterfront properties, that she shouldn't have done. I called her to question her BPO all she said was "I do 50 BPOs a week and I have to be in good standings with the banks" Can you say STUPID?
Kind of have a catch 22 here. If you offer 90% of BPO value, then the property may not appraise high enough for your lender - which would put you right back where you are now.
If the BPO value is wrong then it needs to be disputed. Not easy to do but it can be done. The easiest way is if you have an appraisal you can submit. The listing agent can submit comparable sales. As long as your price is justifiable you may have a shot at getting the lender to order another BPO.
You can always counter, but I don't quite understand why the bank relies on a BPO. Normally, an appraisal is the "last word". Or was this an appraisal and not a BPO (Broker Price Opinion, done by a real estate professional)? Also, when you state 1200 and 1060 sq.ft. as the lot size. Do you mean the living area by any chance? Either way, do a counter offer, it'll get you closer to where you want to be. Their counter is not the last word.
Bryant is right. You can do your own appraisal and have listing agent submit it to bank.
Yeah the Sq ft I was referring to was living area (size of the house, not lot size)
I'm having the same problem with Bank of America BPO on a short sale. The house has been on the market and empty for almost 2 years now. We've been going through this since March. The listing was $150,000 and the BPO came back at $165,000. This house needs a lot of work and the $165 is a good comparable if the home didn't need so much work. I'm getting very frustrated with both my agent and the listing agent who both don't seem to know what to do next.
If your agent cannot handle the job, call her/his broker. All agents operate under the auspices of their broker, i. e. the broker is responsible for their actions. Of course, there is no guarantee the broker knows either, but he/her may be more motivated to get professional advice!

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