Short sales and fair market value? (agents, accept, banks, price)

[twowolves]

Is it accurate to say that banks are ok with accepting (and/or actually use this guideline) up to 20% less than fair market value, on short sales?

And is it accurate to say that a BPO gives the bank the current FMV to go by?

Please answer both questions so I don't have to re-post! Thank you.

[Broker Dave]

Depends on the condition and location but most I'm now seeing are requiring FMV, and yes if done right a BPO should give FMV.

The problem has been listing agents setting the price lower to get multiple offers, makes them look good with the banks, see this quite frequently.

Hope this helps,

[Silverfall]

Originally Posted by twowolves

Is it accurate to say that banks are ok with accepting (and/or actually use this guideline) up to 20% less than fair market value, on short sales?

No I wouldn't say that is accurate.

Originally Posted by twowolves

And is it accurate to say that a BPO gives the bank the current FMV to go by?

In theory yes. In reality it depends on the skill of the BPO agent.

[FalconheadWest]

I would say no to both questions. There is no rule of thumb about what a bank will accept on a short sale. It's about catching them on a good day or not. As for the BPO, the vast majority are done without viewing the interior (in my area), so I don't see how that can really be a FMV when the inside can dictate a lot of the value.

[MrRational]

Magic Eight Ball CGI

[twowolves]

Originally Posted by MrRational

Magic Eight Ball CGI

I got absolutely!