Someone explain this to me...

SPS is fast. I'll give that to them, but overall so far I'm in shock. DRIVE BY BPO in September came in on my property at $330,000. I got an offer at $130,000 due to the subject property next door being 5 units (mine is 4) and on the market for over two years without an offe for $130,000.. Finally expired because there is no parking and a water line issue between both properties. Buyer ordered appraisal and SPS ordered new BPO last week. Appraisal came in at $195000 and the BPO WHO WAS THE SAME AGENT THAT DID THE DRIVE BY IN SEPTEMBER, came in at $225,000.

Auction is in one week.

I called SPS and they ordered a variance where they re-evaluate the subject property. The buyer, in light of the appraisal upped their offer to $175,000 as there is a TON of work that needs to be done, encroachment issues(hangs over 5 ft onto the next property line), a water line that runs under my property that feeds the next door neighbors, mold, illegal unit blah blah, I could go on.

SPS came back today and said their VALUATION IS $280,000 after the variance came back because the first DRIVE BY BPO was $330,000!!!!!!!!!!!!! WHAT????????? It was a drive by and the SAME AGENT valued it at $225,000 last week. The BPO agent is not from the area and I still think they did a pretty good job when they got on the inside. The appraiser got even MORE detailed.

So all this info was submitted to SPS. I'm at a loss at why they think it's valued at $280,000. We asked them to order another BPO and to review the information carefully.

Investor is Deutche. I'm just not sure what else to do here.

The short sale department said they would send everything back to the variance department to review, but that's where I'm at.

Have you ever heard them value a property $50,000 MORE than the BPO?? oh, AND appraisal??

Jim, I'll call the agent and see if I can get a copy of the BPO, but I don't think that will help because SPS is saying the comps the BPO agent used in his second evaluation (the walk through) are NOT SIMILAR to the subject property because of the condition of the property. They said that they like the $330,000 and $310,000 comp and think that's similar.

SURE IT WOULD BE SIMILAR IF THE HOUSE WAS COMPLETELY GUTTED AND REDONE. The agent indicated there was a comp for $202,000 that they discarded, but honestly that was WAY more accurate.

I knew it was the same agent because he told me he did a drive by and never even walked around the house.

Jim, the BPO when he did a walkthrough finally was right. His drive by was innacurate as most drive by's are. The appraisal SUPPORTS his second evaluation. They are a bit apart but the appraiser took a lot more of the repairs into consideration.

Replies

Smitty December 2, 2010 at 5:55am

Jim, I'll call the agent and see if I can get a copy of the BPO, but I don't think that will help because SPS is saying the comps the BPO agent used in his second evaluation (the walk through) are NOT SIMILAR to the subject property because of the condition of the property. They said that they like the $330,000 and $310,000 comp and think that's similar.

SURE IT WOULD BE SIMILAR IF THE HOUSE WAS COMPLETELY GUTTED AND REDONE. The agent indicated there was a comp for $202,000 that they discarded, but honestly that was WAY more accurate.

I knew it was the same agent because he told me he did a drive by and never even walked around the house.

Jim, the BPO when he did a walkthrough finally was right. His drive by was innacurate as most drive by's are. The appraisal SUPPORTS his second evaluation. They are a bit apart but the appraiser took a lot more of the repairs into consideration.
Jim Schneider December 2, 2010 at 3:59am

Smitty,
can you get a copy of any of the bpo's, I may be able to give you some help there. Also, take a look at the BPO section on this website, I've posted lots of notes on how to get the bpo right. Last, if it was a drive by, how did you know it was the same agent?
Smitty December 2, 2010 at 2:05am

I will see if I can get a contractor in there in this short time. I think that's my last option. The town doesn't know about the illegal 5th unit, but they will because they won't issue occupancy permit for it.

I sent SPS a letter asking them to get ANOTHER BPO done if they didn't feel the value was accurate from the appraiser and thee agent they hired. Two different people with a relatively similar value, and for some reason SPS thinks the value is $280,000.
Bryant Tutas December 2, 2010 at 12:59am

Smitty. It sounds like a difficult property to put a value on. Heck even the buyer was willing to up his offer by almost 35%!!

If you want to keep fighting, my suggestion would be to get multiple estimates for the repairs needed. Put together a package explaining everything that's wrong with the property including any reports form the city about code violations etc and get to the lender.

Of course this may just be a sale that ain't going to happen. We can't win them all.

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