Several prior Tucker’s Tips have discussed the importance of a reasonably valued BPO (Broker Price Opinion.) If the BPO is too high, the short sale lender will not approve the short sale and the house is destined for a foreclosure.
Although the BPO is supposed to represent the current market value of the house, the realtor performing the BPO may determine a value significantly higher than the current contract price. As the BPO normally requires several comps to assist in determining the price, the listing realtor could consider providing listing and comps information to the BPO realtor to support the short sale contract price.
Attached to this Tucker’s Tip is a “BPO Checklist for the Listing Realtor” with information on how to assist with the BPO valuation. Hopefully some of the suggestions will be helpful. Remember, every successful short sale is “one less foreclosure.”
PS: Unfortunately nothing can be done about the “Drive-by BPOs” which are becoming more and more common. It’s unbelievable that a short sale lender will make short sale decisions worth hundreds of thousands of dollars on a valuation which does not include an actual inspection of the property.