old radiator split escutcheon

WaterColor, Florida

You must see this incredible home!! No expense spared! This beautifully constructed home in WaterColor is one of a kind. Gas lanterns welcome you ...

153 Pond Cypress - WaterColor Florida

This home provides the most bedrooms available in Watercolor's Camp District. This premium Watercolor cottage provides both elegance and ease ...

Watercolor Santa Rosa Beach Real Estate MLS# 523985

www.keithbaileyrealtor.com presents a Scenic Highway 30-A real estate property located in Santa Rosa Beach that will knock your socks off! Wide ...

WaterColor Beach Florida

This is a video of WaterColor Florida showing the current condition of the beach. WaterColor Beach has had no effect from the oil spill so far ...

How Many BPOs Does It Take To Get The Short Sale Price Right?

The games we short sale agents must play!   Here is a perfect illustration about why short sale lenders should not rely on one value, called a Broker Price Opinion (BPO), to decide if an offer is the right price.

1.  I list a Fort Walton Beach Florida short sale at what I believe is close to market value-  $89,900.   I’ve been doing this for awhile, so my philosophy is to price where other comparable properties will support this value, using recent sales, competition, pendings and expireds. 

2.  I receive an offer in the $80,000s.   The seller and I discuss that this is likely in range of what the BPO agent will come up.  Seller accepts offer and I forward short sale package to Bank of America.

3. Bank of America orders their BPO.   I receive a counter offer, stating BPO value is $124,000.  Gee, I must have really missed pricing right here!  Off by 30%! Buyer walks.

4. I raise the price to $124,000 .  Aahhhhh, only for a short time.  I know the BPO is only good in this case for 90 days (not a VA compromise sale).  Of course, no one looks at the house.  I slowly lower the price.

5.  90 days are up!   I reduce the price back down to what it originally was, actually a bit less, since our market has now dropped.

6.  PRESTO!   New offer in the $80,000s.

7.  I send the short sale package to Bank of America .  I pray they don’t get the BPO value wrong again.

8.  We are in luck, the mighty BPO agrees with the contract price this time!   I am blessed! Short Sale approved in the $80,000s.

Meanwhile, Bank of America spent more on legal fees.  I spent more on marketing. And the seller hurtled four months closer to foreclosure.  Let the short sale games continue.

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