If your in the short sale game you know how important it is to handle the BPO process. If that BPO comes in too high it’ll kill your deal on the spot. But does that mean that you “trick” the BPO agent into seeing things that aren’t really there?
I don’t know about you, but somehow that just doesn’t sound right. Short sales are already a very sensitive transaction without going around advertising that you’re using “Jedi Mind Tricks” to influence the BPO agent. Your not trying to trick anyone into anything when doing the BPO.
So, how do we get around this issue? I’m going to give you a BIG tip. You can thank me later. No one that I know of uses this technique except for our team. What you do is pay for a professional appraiser to appraise the property based on comps of homes that are active, pending, and sold. The BIG tip comes from where you get your Sold comps.
Most people use the sold comps they find on the MLS, Zillow, or Realtor.com. What we use are the sold comps of homes that sell on the courthouse steps during the Trustee Sale. Brilliant, isn’t it? They are true sold comps but have sold anywhere from 20% – 30% below market value.
I just did the numbers in one of the Cities that I just finished my BPO on. There are 70 active listings. 32 of those listings are Short Sales. 31 Homes have sold in the last month. Only 5 of those sold homes were short sales. Stats don’t look too good for short sales, do they?
So, based solely on those number only 16% of short sales are selling. What happens when they don’t sell? They go to auction! Our team believes it’s very important to bring these sales prices to light since they aren’t available on the MLS. We do some digging but prepare a pretty awesome package for the BPO agent with true, honest comps without having to Jedi Mind Trick nobody.
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