Real Estate, etc... by Eric Michael: Is it Hard to Get a BPO Changed?

Is it Hard to Get a BPO Changed?

Is it Hard to Get a BPO Changed?

BPO. Broker Price Opinion.

Bank owned homes do BPO's.

They do them so they know approximately what they'll get for them before they put them on the market.

They'll do them again after a certain amount of time has passed or if they get an offer on a home.

That's fine.

My concern is a bank doing a BPO on a home that is still owned by the owner.

When a homeowner wants, or Needs, to do a short sale, the bank will do a BPO, sometimes more than one, when the receive a purchase agreement trying to get them to accept less than what is owed on the mortgage, that way the seller can sell the house for whatever reason or hardship they have.

I have a short sale, and we had a pretty solid offer on it. Problem is, the bank did their BPO and countered the offer.

The problem I have is that there's no way the property will sell at the price they think it will!

So, I'm sending some comps in, including one that sold after the BPO was done. It's the house directly next door to my client and it sold for over 30% LESS than what we're trying to sell this house for!

My question to you...

Is it Hard to Get a BPO Changed?


Eric Michael, Real Estate Professional
Remerica Integrity, Realtors
41000 W. 7 Mile #105
Northville, MI 48167

Cell: 734.564.1519

Fax: 248.912.9996

www.ShortSaleInfoMI.com

www.EricMichaelOnline.com

Comment balloon 12 commentsEric Michael • March 04 2012 05:12PM

Comments

I've never been successful in getting one changed.  Although on one short sale we challenged it with the buyers appraisal and the bank accepted that. 

Posted by Tammy Lankford,, Broker GA Lake Sinclair/Eatonton/Milledgeville (Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668) over 7 years ago

Tammy, the buyer on this house is an investor paying cash. No appraisal. I hope this works!

Posted by Eric Michael, Metro Detroit Real Estate Professional 734.564.1519 (Remerica Integrity, Realtors®, Northville, MI) over 7 years ago

Hi Eric - My impression from watching other good short sale agents is that it can be done, but that it's extremely difficult, since you'll be dealing with an institution that, were it a person, would probably be diagnosed with acute disassociative disorder - an inability to percieve or react ot the real world.

Posted by Dick Greenberg, Northern Colorado Residential Real Estate (New Paradigm Partners LLC) over 7 years ago

Dick, I know it's a bank, and the ego of the BPO agent, but the house is Right Next Door!

Posted by Eric Michael, Metro Detroit Real Estate Professional 734.564.1519 (Remerica Integrity, Realtors®, Northville, MI) over 7 years ago

It can be done. Bank owned homes usually require a new BPO every month. And they usually ask for more than one broker to supply. So, yes it can be done.

Posted by Sherry Scales, Realtor, for Austin, TX and surrounding areas (Austin Texas Homes, LLC) over 7 years ago

I had a similar situation happen a couple of months ago.  You can rebut the value.  They have a rebuttal process which is a worksheet simlar to that of a BPO report which I do plenty of.  Once the rebuttal is in it goes back to the negotiator and it usually takes another 10 business days for them to review your rebuttal package.  They reviewed mine and came back at a lower number.  Give them a call and ask for a rebuttal of value process - good luck!

Posted by Kelly McGovern, Working with Kelly is a good move (Realty Concierge International) over 7 years ago

I have never had one changed either, but I know they expire after a certain amount of time.  Hope it works out for you!  

Posted by Amanda Christiansen, Christiansen Group Realty (Christiansen Group Realty (260)704-0843) over 7 years ago

Sherry, turns out Fannie Mae doesn't care what the BPO is. They "need" to net a certain amount and that's that. At least that's what I'm being told. Looks like it could be a dead deal.

Kelly, our short sale negotiator said it wouldn't work. I don't understand it.

Jared, the whole thing sucks, expecially for my seller.

Posted by Eric Michael, Metro Detroit Real Estate Professional 734.564.1519 (Remerica Integrity, Realtors®, Northville, MI) over 7 years ago

I find most BPO agents are agents who are starving for work and will do these rather than get out of the business. This is why I meet the BPO agent at the house with my comps to help show them the real value of the home. If they bank only does a drive-by, then I really protest the BPO.

Posted by Respect Realty LLC, Brokers - Oregon / SW Washington Real Estate (Respect Realty LLC) over 7 years ago

Todd, I wasn't notified by my office that they were coming. Rats. But I did send in a comp that closed a couple days after the BPO, on the house right next door, and they said "it doesn't matter."

Posted by Eric Michael, Metro Detroit Real Estate Professional 734.564.1519 (Remerica Integrity, Realtors®, Northville, MI) over 7 years ago

Eric, I have a short sale currently in review by the bank, BPO done first of January, and we have been trying to get it re-done, with no luck so far!

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (House to Home, Inc. - Denver Real Estate - 720-231-6373) over 7 years ago

Joan, they refused to even look at our set of comps.

Posted by Eric Michael, Metro Detroit Real Estate Professional 734.564.1519 (Remerica Integrity, Realtors®, Northville, MI) over 7 years ago

Participate