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I have noticed with my short sale that the BPO was done with another agent in the office of the sellers agent. The price range was at market value but did not did not take into a count the maintanance issues.
I have noticed with my short sale that the BPO was done with another agent in the office of the sellers agent. The price range was at market value but did not did not take into a count the maintanance issues.
Have other BPOs been on target?
The quality of a BPO will depend on the specific agent's skill at evaluating property, and the amount of effort put into it. Some will be better than others. Just keep in mind that a BPO is not a substitute for a full appraisal by a qualified appraiser.
And many maintenance issues are not obvious to the casual observer. The agent will not run the appliances, check the HVAC system, run the sprinkler, climb up to check the roof, etc. They just note what is seen and adjust for the differences between the subject home and comparable homes.
Location: I live between Myrtle Beach SC and Raleigh NC.
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I just bought a condo through a short sale that was 150K 4 years ago. Today they are going for half that. Mine was listed on the market for 45K and I put in an offer of 46K
I was immediately approved by the owner and had to then wait on the bank. Once they got the BPO which was 70K the bank countered at 50K which I quickly accepted. 4 months wait on the BPO and I have a 1 bedroom on the oceanfront with low POA fees with nothing on the horizon in as far as assessments. I think I made out pretty good.
BPO's are a strange thing as far as my purchase was concerned! I liked mine.
I listed a short sale a month ago, and the bank actually went out and did an appraisal beforehand, and told me the price to list at. Suprisingly enough, it was right on target to what I had come up with from comps.
I bought a TH for 22K, that had been 150K only 18 months earlier. The BPO was 70K, and less than 4 months later, I paid 22K. It is now very happily rented for 569, but it sounds like you got a good deal. I would have given them an ultimatum on the wait, though, as in the price is lower next month....
I listed a short sale a month ago, and the bank actually went out and did an appraisal beforehand, and told me the price to list at. Suprisingly enough, it was right on target to what I had come up with from comps.
This is what happened with the SS we are trying to buy. A BPO was done before the house was listed. Now a second BPO was done after our offer was submitted to the bank.
This is what happened with the SS we are trying to buy. A BPO was done before the house was listed. Now a second BPO was done after our offer was submitted to the bank.
Some banks are actually wising up the the exhorbitant costs they incur due to their ridiculously disorganized and time consuming process (or lack thereof) to approve a short sale. Not only is the manpower requirement huge, but the market price continues to decline while they delay.
Finally some of the lenders are making it quicker and easier to process the SS, starting with a BPO or appraisal so the buyer doesn't back out when the required price is higher than what they can/want to pay.
Some banks are actually wising up the the exhorbitant costs they incur due to their ridiculously disorganized and time consuming process (or lack thereof) to approve a short sale. Not only is the manpower requirement huge, but the market price continues to decline while they delay.
Finally some of the lenders are making it quicker and easier to process the SS, starting with a BPO or appraisal so the buyer doesn't back out when the required price is higher than what they can/want to pay.
We are really hopeful about this. Our bpo was preformed about 3 weeks ago and we are still waiting to hear.
Seems so logical. I have ready many stories on crazy bpos and agents who are not familiar with the area coming out with crazy numbers. glad they are finally wising up about this.
Just remember, just because it's "a BPO approved price" doesn't mean squat IF there are multiple lien holders on the home.
Got a home right next to me on the market over 1 year. It's been "BPO" approved price for at least 4 months.
The issue is the homeowners have like 3 or 4 different liens on the home. I think a couple of those secondary lien holder took insurance out so they get paid in full if the home goes into foreclosure.
So BPO is only good if there is one lien holder or the secondary lien holders give up their position or if the homeowners are in HAFA where the government lets the first lien holders call all the shots.
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