By: Sean Wilder

Sean Wilder — Thu, 09 Jul 2009 13:52:30 +0000

Thank you for your comment. But I must disagree. The analogy is similar to an appraisers responsibilities. They also should not be influenced by anything given to them or said to them by an agent that may meet them at the property. However, many, many agents make sure that they meet the appraiser at the property and show them the contract and good comps. It's the same here. There are many BPO agents out there today that are cranking out BPOs as fast as possible so they can cash as many of those little checks as possible. And there is nothing wrong with that, until their speed affects their work. I have seen numerous BPO values that have been submitted on short sales that were in no way justifiable if you really looked at the property and made good solid adjustments for condition. My point to the “value range” was obviously exaggerated for demonstration purposes. However once again I have experienced firsthand the restrictive nature of what the lender will and won't allow for adjustments, regardless of their actually affect on the properties value. I recently had a BPO agent who was doing his second BPO on the property, tell me the bank would not allow his adjustment for the location of the property and its proximity to an extremely hazardous property. Everyone who looked at the property had the same comment, "I am not living next to that property". So there was a major affect on the value. But the lender only allowed the BPO agent to take half the adjustment he felt was correct.
The whole point is that the BPO is so important to the bank’s decision that the listing agent cannot leave it up to chance. You must meet the BPO agent and make sure they have all the information they need to accurately determine the value of the property. If they do not look at it or us it, and do their own research, GOOD. They should be doing that, but if the agent you get is lazy or overworked with 20 BPOs that day, at least you made sure they already have what they need, whether they use it or not, you cannot control. But you did everything you could on your clients behalf. Plus, if you meet the agent you can get an idea of how thorough they were when they were at the property. If the value comes in ridiculously high, that is more information we can present to the lender to contest the value or have a new BPO ordered.

By: Kris

Kris — Thu, 09 Jul 2009 02:53:07 +0000

As an active BPO agent, we are not allowed to converse with the listing agent or owner about valuations we do on the property. It is actually only information that is provided to the lender/ valuation company that ordered the Interior valuation ( BPO) I also do not agree that a contract should not be given over to us, along with comps. Valuation can not be forced. Yes, I can see your point on pointing out damages and highlights of the property, which is totally fine, but we are NOT allowed to look at contracts or third party comparables. They are not permisable in the BPO. Also, you mention that the BPO must fall into a "range" if a roof is missing or something. That is absolutey not true. If the subject property is in Fair to Poor condition, the same condition comparables must be used. If those comparables are not avaliable, then comps from the current neighborhood need to be used, and adjustments need to be made comparing a good property to poor conditioned property such as the subject in this example. Than a valid adjustment for the subject PRICE REPAIRED, REPAIR/DAMAGE amount and AS IS value for the property is calulated. Once upon a time that might of been the case, but valuation companies & lenders ( quality control departments) are changing the standards. Just wanted to throw my cents in..but the best advice I can take away from this post is showing the BPO agent the damage...going any further is a conflict and against many of our policys.

Comments on: Short Sale Tip of The Week 7-1-09

By: Sean Wilder

By: Kris