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Influence the BPO for a Successful Short Sale
| | Tuesday, March 14, 2006 @ 10:16 AM EST
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Contributed by: Stefanie Blackburn
Stefanie Blackburn Properties
Read more archived articles about Foreclosures
I am often asked by other investors new to the short sale process… “What can I do to get my offer accepted?” There are many pieces of the Short Sale process that will contribute to getting your offer accepted, however one of the largest pieces of this is influencing the BPO, Brokers Price Opinion, or the Appraisal. The lender relies on the BPO or Appraisal to determine the value of the property. Based on the value that is obtained from the BPO or Appraisal they determine what the lowest amount they can net is. This is why it is key to influence this number.
How can I influence the BPO or Appraisal
One important thing to keep in mind regarding the person doing the BPO or Appraisal is that they typically do a lot of these and
unfortunately aren’t paid very much. An agent doing the BPO is usually paid under $100 to do this. A lot of times the agents that do these are also new agents trying to build a business.
In order to influence the BPO or Appraisal I always meet the person doing
this at the property and provide the comps I want them to look at as well as a
professional repair estimate. I also make sure to point out everything I can that is wrong with the property.
The goal is to make their job easier and to sway them to my value.
Depending on the condition of the property there are many ways to try to
influence the value obtained. I don't suggest being dishonest in any way however, you can over emphasize some
issues.
If there are any potential mold issues it may influence the value if you wear a face mask like you can purchase
at Home Depot and also offer one to the person doing the BPO/Appraisal.
You can offer them to look at something but indicate last time you went in there you became ill feeling
If the owners still live in the property tell them not to fix anything. Tell them not to clean it.
Ask them to also give you a list of anything and everything wrong with
the home.
Explain to them that you want a very very low appraisal and to do what
they can to make the property look unappealing
If the property is vacant, remember always be honest and ethical, however you can
emphasize certain things
Don't clean up anything.
Don't clear bad smells if you can emphasis the smell that is great
Often missing items from kitchens such as cupboards make an impact, don't replace any if they are missing
Always be polite and curious to the person completing the BPO or appraisal, get their business car and follow up the next day to see if there is any additional information that they need on the property.
You can always ask out of curiosity as well where did they come in on the value. In a lot of cases they won't share this information, however it never hurts to ask and if you can find out this number it really helps to know what your chances are of getting your offer accepted.
Note: Stefanie Blackburn is an active investor in the Colorado, Michigan and Texas markets. She has done a number of successful short sales over the last couple of years that have resulted in win-win solutions for all parties involved. Stefanie has recently started www.resuccesslink.com - a resource for investors.
Word Cloud:
this short appraisal tell person what there getting influence offer them however these sale agents doing many determine don't pieces wrong well successful always make look want property they also value very paid property. everything clean
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