How to Dispute a Bad BPO

By
Real Estate Broker/Owner with Broadpoint Properties Cal BRE #01324959

short sale processI’m not going to say that I am super strong. I’ve done some martial arts and some kickboxing, but if I hit you, I probably wouldn’t take you to the floor. Nevertheless, I know the best way to fight a bad Broker Price Opinion (BPO). I can knock that baby to the floor in three easy moves. And… here they are:

  1. Meet the BPO agent at the property. In order to be able to intelligently discuss the BPO with the seller’s lien holder, it is a good idea to assure that it has been completed, and that it was completed by a licensed agent. If you go to the property at the time of the appointment, you can verify that someone actually showed and that the individual who showed was not merely an assistant sent to take photos of the subject property.
  2. Prepare you own Comparative Market Analysis. Using your MLS, find at least 3 comparable properties that closed within the last three months. These properties need to support your purchase price. If they do not, you need to have ancillary materials that might explain the disparity in value (e.g., photos, repair bids).
  3. Order a property appraisal. When all else fails, you can always submit a full appraisal to the bank. Since the appraiser is certified, the short sale lender generally puts a lot of credence in the values noted on a full appraisal. Yes, appraisals cost money, and someone will have to pay for the appraisal, but often times, this is the best way to provide an accurate value to the short sale lender.

When the short sale lender counters your offer because the BPO came in higher, explore your options. If you feel strongly that the bank’s value is incorrect, you can knock that BPO to the floor with the three easy moves described above.

Want more info on how to become a master short sale agent and close more deals than ever before, why not join our exclusive Short Sale Expeditor® Member’s Arena? Sign up here to get the latest and greatest short sale tips and tools delivered our email inbox every Tuesday. And… the best part yet, it’s free!

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Ambassador
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Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Having an apprasial done is a good idea if the seller can afford it. We have REO agents in our area that also do BPOs and I know that's why we get high values on the short sale BPOs...so the agent has a chance to get the listing when the short sale fails and the house goes into foreclosure. This kills me. I've had to dispute a few BPOs...all from the same office. It's adding to the problem and not helping.

Mar 06, 2012 06:33 AM #1
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Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Melissa, when you know what you're doing and are prepared you can easily overcome these issues.

Mar 06, 2012 03:09 PM #2
Rainmaker
133,637
Marcia Kramarz
Re/Max Executive Realty - Medway, MA
CDPE,LMC,CBR

This is really valuable info - You do it again, Melissa!  Thanks so much 

Mar 06, 2012 06:07 PM #3
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Nestor & Katerina Gasset
International Properties and Investments LLC - Wellington, FL
Realtors, Wellington Florida Homes For Sale

Excellent post, Melissa. It sure is very helpful. You have strong opinion on this. You really know your stuff. Thanks for sharing. Keep it up. 

Mar 06, 2012 08:34 PM #4
Rainmaker
1,229,505
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

I just went through a similar thing yesterday with a VA appraiser, doing a BPO for a VA short sale. I talked to that guy for at least 45 minutes, going through the comps and getting him to understand why we have the price we have -- because at first glance it seems to be $100,000 under the comps. But it's not. My seller is military, transferred to Texas and counting on me to get this approved. It took me 5 months to get an offer, and I'm not losing this short sale, no way, Jose.

Mar 07, 2012 06:46 AM #5
Rainmaker
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Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Great blog!

Mar 07, 2012 01:40 PM #6
Rainmaker
911,044
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

It drives me absolutely nuts when a lender sends an agent from outside the area who knows nothing about local values and they submit some ridiculous value to the lender. It is the worst part of short sales in my book!

Mar 09, 2012 04:41 AM #7
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Melissa Zavala

Broker, Escondido Real Estate, San Diego County
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