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