If you're doing BPOs, please don't inflate the value......

By
Real Estate Agent with EXP Realty LLC 542202

Why is it that some real estate agents inflate values when they are doing BPOs? Are they trying to steal the listing?

I have some clients right now who are trying to buy a short sale house. We looked at the sold and listed comps and made a very reasonable offer. The bank countered back with a higher square foot price than any house sold in the neighborhood for an entire year. Why you might ask? And I did. The listing agent told me that the bank ordered a BPO from some random real estate agent and it came in high. How, I asked? Did they not see the same comps as me? To top it off, the listing agent even told me that he gave them a BPO that was more down to earth. But the bank decided to go with the higher value.

It's been on the market as a short sale for 75+ days and will eventually foreclose. What is the point! Why even pretend to attempt to sell it short if it's never going to happen. Even if it did it would have to be a cash deal because it would never appraise. As you can tell, this is extremely frustrating for me. I will find my clients another house, but they really liked this one.

Oh well, thanks for allowing me to vent. The moral of the story: if you do BPOs, please don't inflate the value, it doesn't help anyone. And if you're doing it to steal the listing, SHAME ON YOU!

Comments (5)

Victor Zuniga
Berkshire Hathaway Home Services California Properties - San Diego, CA

Leave it to the banks to go with the higher one. shame on the agent that skewed things by inflating the price.

Oct 22, 2010 08:21 AM
Dennis Herman
Crossroads Real Estate LLC - Oostburg, WI
Dennis Herman

Each is an individual case based on conditon and location, and the number of foreclosures on the area.  The rest is commone sense, and the conditions of the BPO request.  If they ask for a 30 day sale price, it will of course be set on the lower end of the price range.  If they reqest market value, it may be a different figure all togehter. 

Why wouldn't you give banks the same rights as any other seller?  I am seeing the market go from bottom line prices to competivie market prices, which is what I thought we were all waitng for.

Oct 22, 2010 08:28 AM
Phillip Baird
EXP Realty LLC - Austin, TX

Victor,

yep, that's how I feel.

Dennis,

It's pretty cut and dried to me. If you look at the solds for the last 12 months and the market hasn't moved up, in fact it's moved down, why would anyone think they could get a price way above market value? Especially a short sale. And the bank doesn't own it yet, it's not a foreclosure. So they are toying with someone's life who's trying to short sale and avoid foreclosure. This one house isn't going to bring the market up. Sorry I disagree with you. Thanks for the comment though, it is appreciated.

Oct 22, 2010 08:40 AM
P.J. Virgilio Jr., Realtor 408-568-6578 Selling homes in the Greater San Jose area and South through San Martin, Gilroy
Keller Williams Realty Silicon Valley - Gilroy, CA
San Juan Bautista and Hollister as well!

Phillip,

My comment to you turned into a post for me because like you I see this all too often.... check it out if you have time.

Oct 22, 2010 08:44 AM
Phillip Baird
EXP Realty LLC - Austin, TX

Patrick,

I don't see a comment from you.

Oct 22, 2010 08:52 AM