What is a BPO and Why is it Important to Short Sale Success?
What is a BPO and Why is it Important to Short Sale Success?
Ladera Ranch, CA – There are many real estate agents who hate short sales. Why should that be? The answer is simply because they really don't understand them too much better than their clients do. In a previous post I promised to explain what a BPO was and why it is so important to short sale success. So here we go:
There are two things a broker doing a short sale must understand with absolute clarity. The HUD 1s and BPOS. BPO is an acronym for “Broker's Price Opinion” And getting the wrong BPO is where everything can begin to fall apart.
The BPO is an independent real estate broker's opinion of the value of the property to be short saled. In short if they tell the lender “ I think that home is worth $300,000” and the offer on the table is for $275,000 they – the lender- will turn it down. A lender will usually reject or accept based on the BPO. And often, in my opinion, the BPO is just off.
I have seen brokers drive fifty miles to access a property. A property that is located in an area they personally have never worked the real estate market. So what I do is actually make the effort to go meet with that broker. I give them a little more insight into both property and the market and then explain the offer price if it seems a little low. There may be a problem with the house, the neighborhood , who knows? All kinds of things can affect a home's real value and many of those do not become apparent during a ten minute walk through.
Once the broker has all the information, including mine, I find that they really do give more thought to the BPO they set and therefore are more likely to come up with a realistic BPO that will convince the lenders to approve the short sale.
What is a BPO and Why is it Important to Short Sale Success? I can help you short sale your property and never pay the bank another penny. Please feel free to send me an e-mail at arna@ehomes.com or give me a call at (949) 244-0444 to arrange a free consultation.
Thanks for your time,
Arna Freedman
