Oct 21, 2013

Tip 31-2013: BPO Checklist for Listing Realtor

In the past, Tucker's Tips has discussed the importance of a reasonably valued BPO (Broker Price Opinion). This week's tip is a friendly reminder of why the BPO value is important when negotiating a short sale contract and how the Listing Realtor can assist in obtaining a reasonable BPO that approximates the contract price.

Part of a successful short sale transaction is obtaining a BPO that is reflective of the contract price. An unrealistically high BPO is usually a death sentence for a short sale. The Listing Realtor needs to participate actively in the BPO in order to assist in obtaining a correctly valued BPO. Tucker's Tips recommends that the Listing Realtor do the following:
  • Remove the lockbox from the house once a short sale contract has been signed
  • Meet the BPO Realtor at the house to provide access to the property and to provide information about the listing
  • Provide the BPO Realtor with the following information:
    • Listing information and marketing history including price reductions
    • Recent comps to support the contract price
    • Inspection information including all known flaws, defects, or repairs needed
    • Copy of the contract showing the purchase price (obtain Seller's permission)
Again, the goal is to obtain a realistic BPO, not an unreasonably high BPO that can create a huge hurdle to overcome in completing a short sale. The closer the BPO is to the contract price, the more willing the short sale lender is to negotiate a successful short sale.

Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.  Thank you for allowing us to send you this email.      

William D. Tucker, III   

 Charlottesville, VA 434-973-7474 | Lake Monticello (Palmyra, VA) 434-589-3636       

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