Hey Wells Fargo - one of us is wrong - And It's NOT Me! Part 1
I am currently working on a Wells Fargo short sale. I have done lot's of Stanislaus County Short Sales over the last few years. I have been selling real estate here in Stanislaus County for nine years 
now. I have lived in Stanislaus County all of my life and that's over half a century. (Putting it that way really makes me feel old) I mention all of this because of what is going on with this particular Stanislaus County Short Sale with Wells Fargo.
This particular home is listed at $100,000. We have a cash offer of $105,000. It needs some work including a new roof. It's definitely not in brand new condition. I priced this home at what it is currently worth in it's PRESENT condition. There have even been two recent sales on the same street of the same exact model home and they both sold at $98,000. One was a short sale and one was a bank owned sale.
If this home was in pristine condition with the new roof and new carpets, fresh paint inside and out, new appliances and cleaned up front and back landscaping it would probably be worth somewhere around $130,000. Unfortunately Wells Fargo thinks it's worth more. And not just a little bit more but a LOT more. Wells Fargo's counter offer is at $157,000!!
Of course I have brought this to the attention of Wells Fargo. I sent the negotiator multiple emails, including photos of the home and it's shortcomings. I told him about the recently sold comps. I asked if I could see Wells Fargo's Brokers Price Opinion (BPO). I know they had one done because I was contacted by the person doing the BPO because they needed access to the property.
The negotiator's response was:
We do not have a BPO. The counter is based off the investors valuation. You have an example of another short sale and REO? That is the problem. The investor is trying to stabilize the market by not accepting offesr below what they believe to be fair market value, and they have been sticking to their valuations. If the counter is too far off, we will have to decline it.
First off Mr. Negotiator you are wrong when you say there is not a BPO. See my comment above. Secondly while I think it is laudable that "the investors" want to stabilize the market by not accepting low offers just how in the world are they going to "stabilize the market" by insisting on unrealistic 
values? No one is going to pay over $20,000 more than a home is worth no matter how badly you would like to "stabilize the market."
And further more Mr.Negotiator if you were to check with someone that actually knows this local market (Hey, like me!) you would know that well over half of all homes sold last year were either Short Sales or Bank Owned sales. So unfortunately those are your comparable properties. So again I say - Hey Wells Fargo, One of Us is Wrong, and it's NOT me!
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