The games we short sale agents must play! Here is a perfect illustration about why short sale lenders should not rely on one value, called a Broker Price Opinion (BPO), to decide if an offer is the right price.
1. I list a Fort Walton Beach Florida short sale at what I believe is close to market value- $89,900. I’ve been doing this for awhile, so my philosophy is to price where other comparable properties will support this value, using recent sales, competition, pendings and expireds.
2. I receive an offer in the $80,000s. The seller and I discuss that this is likely in range of what the BPO agent will come up. Seller accepts offer and I forward short sale package to Bank of America.
3. Bank of America orders their BPO. I receive a counter offer, stating BPO value is $124,000. Gee, I must have really missed pricing right here! Off by 30%! Buyer walks.
4. I raise the price to $124,000. Aahhhhh, only for a short time. I know the BPO is only good in this case for 90 days (not a VA compromise sale). Of course, no one looks at the house. I slowly lower the price.
5. 90 days are up! I reduce the price back down to what it originally was, actually a bit less, since our market has now dropped.
6. PRESTO! New offer in the $80,000s.
7. I send the short sale package to Bank of America. I pray they don’t get the BPO value wrong again.
8. We are in luck, the mighty BPO agrees with the contract price this time! I am blessed! Short Sale approved in the $80,000s.
Meanwhile, Bank of America spent more on legal fees. I spent more on marketing. And the seller hurtled four months closer to foreclosure. Let the short sale games continue.
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Email Wendy: [email protected]