Here is an idea for banks that deal with lazy BPO agents!
For those of you who have dealt with short sale listings have all had that experience where the BPO came back way higher than the home is really worth. Why would the BPO agent bring back a high BPO to the bank? Well, one of the reasons is that I think they are hoping the bank will foreclose and they will get the listing.
But, why doesn’t the bank question these agents to the value of these properties. I think one thing that would stop these bad BPOs is to have the BPO agent list the property at the BPO price. Then when the property doesn’t sell at that price, they reimburse the bank the difference between what they listed originally for and what it actually sells for.
The banks do this, this will stop those horrible BPO drive-bys. I had a listing that the BPO came back on that showed comps of completely remodeled homes over a mile away in newer housing development. But, this house was built in the early 1970s, still had the original carpet and was torn down to the studs. Was it worth what the BPO showed it was worth? Not at all, it couldn’t even qualify for a loan unless it was a 203k loan.
But, this agent did their drive-by and clearly it was worth $50,000 more because the outside looked OK. I sent the pictures to the negotiator and said “How could your BPO agent say that it is worth the same as this house?” (Sending the pics of one of the remodeled comps)
The bank agreed and ordered a new BPO and this time, the BPO came back right where I said the price should be. So, laze BPO agents, you aren’t doing anything besides helping lower the property values and keeping homes on the market longer than they need to be when you give a bank a bad BPO. So, for your sake, I sure hope they don’t take my suggestion.
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