A BPO is an acronym that stands for Broker Price Opinion. As a part of approving a short sale, a bank will order either an appraisal or a Broker Price Opinion (or both) to determine the market value of the property. Before approving a short sale, the bank must make sure that the offer presented represents true market value for the property. The agent they hire to complete the BPO can have no connection with selling the home. Occasionally, banks will order more than one BPO and compare them against each other to insure that they have the value correct. Often they give the agent 24 hours to complete a BPO and pay them as little as $35 to complete it. If the BPO indicates that the market value for the home is higher than the submitted offer, the bank could counter or reject the submitted offer. As a short sale seller, it may be scary to think that the fate of your short sale may rest on a Broker Price Opinion. But for most short sale lenders, the BPO is one factor among factors, and the REALTOR you’ve chosen to represent you can play a big role here by continuing to provide additional information to the lender that may not be represented in the BPO. Communication with the lender is essential.
Are you considering short selling your Santa Maria, Orcutt or Central Coast home? Please call me at (805) 878-9879, and set up a free initial consultation.
* Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement — this blog does not offer legal and tax advice. This blog offers general information only which may not apply to your specific situation.
In July 2006, Mint Properties opened an office in the Mission Creek Plaza on Santa Maria Way. Tni’s stated aim is to offer the highest quality representation and professional service to her clients. Independence affords her the ability to avoid a volume driven approach; the result is prompt, reliable, individualized service coupled with straightforward advice. Indeed, she brings the same level of professionalism to real estate as she did to the law.
Approximately 25% of the 500 active single family listings in the Santa Maria California market are "contingent." Buyers run up against this time and time again, and often wonder, "what exactly is a contingent listing?" Before the housing bust, "contingent" was primarily used when a seller accepted a contract that was contingent upon another home selling. For example, if I offered to buy your home but I needed to sell my own home to make that happen, I could make an offer contingent upon my home sale.
The average price for a home in Santa Maria and Orcutt edged up only slightly from $250,000 in December 2008 to $252,000 in December 2009, reflecting the fact that the market appears to be stabilizing. Also, the average price for condos has gone up from $120,000 to $168,500.
