Short Sale Tip # 6: Controlling The BPO
February 25, 2008
Short Sale Tip # 6: Controlling The BPO
Today’s Tip is about the BPO…or where the show begins!
This is the most important “process” of a short sale. It is an aspect of the short sale process that you MUST control…and attempt to influence. Short sales can be won or lost based upon the outcome of the BPO. If you fail to justify to the evaluator why the number you need is correct, then your chances of getting your short sale accepted at the price that you want, are pretty low
The BPO ( Broker’s Price Opinion), is the lender’s field review of the property to determine what they will assert as the value of the property in question.
The lender may often use the services of a local real estate agent to perform this valuation and will use it in conjunction with an AVM to impute it’s value of the property. As you can imagine, there is quite a bit of room for err in arriving at this number.
When the bank orders the BPO you need to be involved in every step. You need to be the contact that the evaluator contacts to gain entry to the property.
It is a very good idea for you to arrange for the homeowner not to be home so you can lead the evaluator through the house pointing out every problem point that you already know of.
Don’t assume anything. Sometimes they arrive and do not even know the property is in foreclosure.
Be armed with the following:
1. The comps that you researched and believe to be indicative of the “current” value of the property
2. A completed repair and improvement estimate from a licensed contractor
3. Copies of any code violations , if any
4. Bring copies of the documents you intend to include in your short sale package.
5. Submit ANYTHING you have that helps justify your number and that which makes the evaluator’s job easier.
Remember, they are only making $30-$90 bucks or so to perform this BPO and although we want this person to scream “uncle”…we want to provide him with documentation he can use to justify our number. This is important because we also let the evaluator know we are sending all of this information to the lender and the last thing an agent or broker wants is to seem incompetent in the eyes of what they are hoping is going to be a listing client.
Be assertive, helpful and courteous without being argumentative. You need this guy to be comfortable with you as you never know when you may run across him again.
Sometimes, if you strike up a good rapport, they will tell you whether or not they can hit your number. Be smooth, be upfront and be yourself.
Smile, be helpful, hold the dog, turn on the lights, bring an extra bottle of water…remember, this guy’s attitude can mean the difference in your deal.
At our seminar, we show you how to effectively influence the BPO so that you can hit your numbers and begin active negotiations with the bank.
Click Here For A Free Downloadable Copy In Our Free Forms & Documents Section
At our seminar, we show you how a hardship letter is to be written and what information must be contained in the letter when it is submitted as a part of the overall short sale package.
If you are ready to take the next step in your real estate career and want to learn how to profit from foreclosures, make sure you enroll in one of our upcoming Pre-Foreclosure / Short Sale Seminar Workshops.
You will learn how the foreclosure process works and how you can profit from this growing market. Instead of thinking that the market has turned against you, get educated and learn how to take advantage of this unbelievable opportunity for the educated real estate industry professional.
Ultimate Pre-Foreclosure & Short Sale Seminar Dates (more to be added)Ultimate Pre-Foreclosure & Short Sale Seminars (online version) : Learn the “Art of The Short Sale” from the quiet comfort of your own home or office. (coming soon)March 8, 2008 - Miami, Florida - $250.00 discounted to $195.00 if you register prior to March 1, 2008 - REGISTER NOW
See our video below to see what some of our past attendees had to say about the Ultimate Pre-Foreclosure & Short Sale Seminar!
This seminar presentation is unlike any other short sale seminar on the market. Many of our attendees have taken the class 3 and 4 times or more!
90% of our seminars sell out in advance.
If you feel that you can become a short sale expert by taking a rip-off imitation seminar or a free board seminar, then you are really missing the boat on short sale opportunities!
For more information on the 2008 Ultimate Pre-Foreclosure & Short Sale Seminar Series, please call us at 954-566-0923.
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