What is a BPO? asked the Buyer. They however were told by their bank, St. Mary's Bank, that they would use a BPO to save money over a full fledge appraisal on a purchase. First a BPO is a "Broker Price Opinion" much like an appraisal when done right, but the person completing is not a licensed appraiser and must be a licensed agent. The difference is a bpo agent does not visit the comparable properties used in the report. When done right can be close to an appraisal.
This bpo was considered a short form where they found 3 sales and 1 current listing. The "subject" or property being purchased is a commercial condo. A free standing building, used as an office but zoned for spa, hair stylist, doctor, dentist, insurance, etc.
The problem started when the BPO agent did not use comparable sales any where similar to this Manchester NH area building. Yes there is a shortage of cons and yes you can use similar buildings not exact but must adjust for differences.
The first comp used was a an office condo in a high rise building in an airport setting. The 2nd was 7080 Sf mill building where the subject is a 1400 sf free standing building, The 3rd comp was 2 garages with a 120 sf office. Sale 4 was a down town high rise office building.
It is alright that there are problems, but only when they are fixed. It was obvious to everyone except the BPO agent and the bank that these comps were not similar. They used a square foot method that came up far from the market value of the subject. The income method was right on and ignored. A written response with corrections was sent to both and they refused to look at any corrections or changes therefore killing the sale, for now. Perhaps for ever, however as a good agent and well experienced person in valuations, a valiant effort will be made to fix their mess.
The HARD TRUTH is the BEST way to go about any home sale or purchase is to know that the consumer should not choose just any agent, choose the BEST agent for the job. My philosophy is simple, provide more personal and professional service to guide my clients through each step of the buying or selling process. All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest. By using a philosophy, which is simple, to provide more personal and professional service to guide my clients through each step of the buying or selling process, I can help you find your dream home or sell your property.
It does not take magic to turn your "For Sale" sign into a "Sold" sign. It takes a full time Local Agent who specializes in Listing homes like yours.
To CONTACT Scott Godzyk please call 603.661.2121 or EMAIL: Sctprop@aol.com .
About the Author: Scott Godzyk is the Owner/Broker of the Godzyk Real Estate Services in Manchester NH. Proud to be locally owned and operated with 30 years of experience, Scott is a leading Agent for Listing and Selling Homes in this area.We are Full Time Agents ready to serve all of your Real Estate needs with an infamous philosophy, which is simple: To provide more personal and professional service to guide my clients through each step of the buying or selling process.