How do you guess what the bpo will say, when you haven't even met the agent? Sometimes the bank might just use a drive-by bpo, and you'll never even hear from the agent, and sometimes the agent may pull comps without listening to you at all.

 

Time- bpo's are a rushed affair. This is because the banks and bpo third party companies impose strict time-lines on when bpo's are completed. Also, if an agent is trying to make money doing bpo's they have to crank them out fast, they're only getting $40-75/bpo, so that doesn't give a lot of time for contemplation. Try this, give yourself ten minutes to pull up the best comps you can, try to get the closest you can with square footage, stay within one mile, stay within 10 years of the house's age, get three sold in the last six months and three on the market.

 

You're going to use the comps that have the age and living area in the mls sheets, so you don't have to look them up. You're going to ignore condition issues, you're not going to care that the subject's a cape and the comp is a ranch. Those are your most likely comps.

 

But my house has condition issues! - Not according to the bpo, the bpo agent was short on time and placed the property condition as average, so s/he didn't have to itemize repair costs.

But my house backs up to a train tracks! Location was marked as average, bpo agent didn't have time to adjust for location or find comps backing to the tracks.

But I have competition from better priced homes - the bpo agent missed those because he found six comps that were priced close together, and didn't want to have to explain why there was one comp much lower than the rest of the group.

 

This is the kind of junk that comes out of the exterior bpos and often the interior ones. This is not a primer on how to do a bpo, but it is important to know where you are at so you can anticipate how much you're going to have to work to get the bank to accept the contract price, and a little of a warning about how bad these get when you don't show up for the bpo or give the bpo agent useless comps that back up your price but aren't close enough to the subject to be useable.

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