subject: Accepting Broker Price Opinions For Short Sales [print this page] Getting a lender to accept a broker price opinion for short sales will not be difficult but you may not get a fair market value for the home. First of all, the bank really doesnt want to enter into a new agreement that decreases the mortgage amount. They will fight you on the process unless they are getting close to what they already receive for the home. A broker price opinion will much likely favor the lender than the new buyer.
The lender requires many documents and exhaustive information regarding the marketable value of the home. A broker price opinion probably will not suffice for the type of in-depth information you will want to present. Remember, this is not a foreclosed property so the process will be much different.
To begin a short sale process you must investigate and find the person in charge of accepting these types of offers. Many times this is the most frustrating experience; start with the loss mitigation department or even call their foreclosure department and start asking questions there.
The lender will generally hire a real estate agency to handle the evaluations and they will want to gather as much information as possible if they are going to accept a lower asking price. The lender will want price comparisons; market analysis for the last 90 days and community trends including the number of homes that have gone into foreclosure in that neighborhood.
Now of course, various banking institutions will perform this procedure differently and some will choose a bpo because of the price but if this is acceptable to them the buyer should get a certified appraisal to ensure the broker price opinions is justified.
A short sale definitely saves the lender the expense of moving forward with the foreclosure process so if you can gather enough information on your own to entice the lender to accept your offer they might jump at it quickly; and this all depends upon the information you collect.
Just keep in mind a broker price opinion is unrealistic and favors the lender when dealing with short sales.
If youre a real estate agent and are working with investors to help get broker price opinions approved for the short sale transaction you want to make sure to support your reports with all the relevant data. Youll also want to make sure to keep good records and pictures of everything.
One of the easiest ways to get a broker price opinion approved for your investor clients is to make sure you take the most up to date pictures possible, do not be lazy and get pictures from the Multiple Listing Service. Make sure to go out to the subject property and take actual up to date pictures, because you may find additional damage that was not on the pictures found in the Multiple Listing Service.
Then make sure the banks loss mitigation department has these new updated pictures in hand so that can readjust the value to reflect the current condition of the subject property, potentially helping you get that broker price opinion approved for your investor client.
