Tip 16-2011: Short Sales, Listings, Realtors & BPOs

(Short Sales, Listings, Realtors and BPOs) Listing Realtors in a “short Sale” take on tremendous responsibility and extra work.  One of the most important jobs they can perform for a successful short sale is to actively participate in the BPO (Broker Price Opinion).  Once there is a fully ratified contract (executed between Buyer and Seller and waiting for short sale lender approval), the realtor should remove the lock box from the house.

By removing the lock box, the realtor or appraiser performing the BPO has to make arrangements to meet the Listing Realtor at the house in order to obtain access for the BPO.  At the BPO appointment bring the BPO realtor or appraiser documentation to support the short sale contract price.  Relevant comps, current similar listings, marketing history, days on the market, price reductions and number of showings are all information which supports the contract price.  If the Buyer’s inspection revealed serious problems, provide a list of the deficiencies or repair items.  Finally, a copy of the ratified contract can be extremely important.  Have copies of everything available to give to the BPO realtor or appraiser.

The goal is to make the PBO realtor or appraiser’s job easier and by doing so, provide supporting documentation for the current contract price.  This is one of the most important opportunities the Listing Realtor has to affect the success of the short sale.

Be proactive and participate in the BPO.  Remember, an unrealistically high BPO is usually a death sentence for a short sale.

Please contact our firm if you have questions or need legal advice.

Senior Partner

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia
434-973-7474
Tucker@TGBLaw.com
www.TGBLaw.com

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