Do BPOs always present a true picture to the lender?

By
Real Estate Broker Owner with Waters Realty of Brevard, LLC BK3064647

The answer is obvious – a great big NO.

As a real estate agent who has completed many BPOs I know there are conditions and issues with properties I can’t document or even see.

The power may be off so if there is an electrical issue or even a non-functioning air conditioner, I would never know. This could impact the selling price bythousands.

There may be a slow leak or other issues with the roof but if there is no active leak or evidence of a leak, how would I know?  Again, if there is a problem, thousands of more dollars off the selling price.

And the poolcould it have a problem with the pumping equipment or a leak, or need to be resurfaced? Potentially thousands here as well.

Another guideline I see referenced in the BPO process…assume the interior repairs/condition from the age and exterior.  I guess if the exterior is neglected the assumption is going to be the interior condition is similar. But what if the exterior is nice and the interior is suffering? You know what they say about assumptions….

When a short sale is involved it seems only obvious – the seller (seller’s agent) must make sure the lender knows the true condition because the BPO may be way off!


Posted by

Gary L. Waters, Florida licensed real estate broker/owner Waters Realty of Brevard, LLC, Melbourne, Florida serving Florida's Space Coast including the cities and communities of Melbourne, Viera, Rockledge, Suntree, Merritt Island, Cocoa Beach and the surrounding region.

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Topic:
Home Selling
Location:
Florida Brevard County
Groups:
florida realestate
Realtors®
All about Brevard: Brevard County, Florida
All Things Florida
Tags:
bpos

Comments 19 New Comment

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Rainmaker
930,967
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Personal Service, always.
Waters Realty of Brevard, LLC

Kwee - Thanks. Have a great week!

Roy - Thanks. My camera in hand is no much for you!

Christiansen Team - Thanks!

Jennifer - Thanks. They are important!

Toni - I have spoken with the seller's agent. Nothing prohibits this as long as values and contracts are not discussed.

Bruce - BPOs are serious. I just think some agents see them as easy gas money. Thanks!

July 10, 2012 09:06 AM
Rainmaker
1,687,711
Gabe Sanders
Stuart Florida Real Estate
Martin County Residential Homes, Condos and Land Sales

Unfortunately, with the way BPO's work, the low pay, the unknown qualifications of the agents, etc., there is no quality control.  There may be some very good BPO's as well as some really bad ones.

July 11, 2012 05:04 AM
Rainmaker
971,520
Sharon Alters
Your Fleming Island Relocation Agents.
Coldwell Banker Vanguard Realty

Gary, I only do BPOs for my foreclosure listings, and I agonize over them. You're so right, there are so many things that you don't know at the beginning. It takes me 2-3 hours to do a BPO. I don't see how people churn them out. It takes time.

Sharon

July 17, 2012 08:06 PM
Rainmaker
670,487
Steve and Jan Bachman
Realtors - Northern Virginia
RE/MAX Gateway, Reston, Herndon, Ashburn, Sterling, Fairfax

Good one Gary, this is so true. With the short sale wave continuing for years to come we need stay sharp on how to relate to the lenders.fairfax county real estate agents Jan and Steve Bachman

July 20, 2012 07:59 AM
Rainmaker
379,775
Regina P. Brown
e-Pro Realtor
California Coast & Country Homes, Inc.

Gary, it really needs a thorough inspection to see those types of problems.

 

July 21, 2012 08:47 AM
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Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC

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