Go to Your BPO Appointment for New Hampshire and Massachusetts Short Sales

I used to think it went without saying that you MUST attend the bank valuation or BPO when it occurs on a short sale listing.  I think one of the biggest mistakes a list agent can make is not attending the valuation, but unfortunately I still see some agents not make the effort to be there for the bank valuation.

I feel the single most important part of the short sale process (and believe me there are MANY parts) is the valuation.  It’s pretty simple.  If the bank thinks the property is worth $280,000 and your offer is for $235,000, you will likely have a tough time getting your offer approved.  99% of the time, when I see a value come in higher than the offer or a lot higher, I know that a list agent didn’t attend the BPO.  Now, SOMETIMES you will get a BPO agent or Appraiser that will want NOTHING to do with you.  You may have pertinent info regarding the property and they just won’t look at it or accept it.  That’s ok.  Just keep all that tucked away, so when your BPO comes in too high and the bank makes a counter, that you have proof of the information you were trying to submit to the bank.  So for instance, if you know a heating system is junk and have an inspection report or contractor estimate and the appraiser or BPO agent won’t take that information from you, make sure you scan it and get it in the lender’s negotiators hands.  Most lender negotiators WILL compare your information to the valuation and make sure it’s consistent.

When we work with a new list agent we have a 5 page BPO guideline packet we hand out.  You HAVE to attend this BPO with supporting documentation on WHY the offer you have on hand is in line with market values.  You cannot expect an appraiser or BPO agent to know all the intricate details about the property the way you do, especially those details that do greatly influence value, such as, water leaking, roofs, utilities and heating systems, termites, crime, homeowner hardship, etc.  A random person is showing up to hopefully make an educated guess at the value of your property.  They aren’t familiar with the homeowner’s property the way you are and you need to show them exactly why it may be priced the way it is or why the offer came in where it did.

If you don’t attend the valuation, you can expect a nice long battle and sale.  If you have a buyer that won’t wait, you will risk losing that buyer and starting over.  If you are LUCKY enough to have a buyer that will wait, you may have to wait some time before the bank will order a new valuation or review a valuation dispute (read my valuation dispute article here) To AVOID prolonging your sale, ATTEND YOUR BPO.  This is a MUST.  You cannot take this for granted.

Maryann Little, VP Mitigation
Short Sale Mitigation
The short sale CLOSERS in Massachusetts, New Hampshire and Maine

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