I have spoken with several Realtors and Investors who say that they don’t like short sales and I always ask them “WHY?” They tell me that the Short Sale Lenders never come back with a value that matches the offer that they have on the property. I always ask them did they go out and meet the real estate agent or the appraiser who was sent from Short Sale Lender to provide the value back to the Lender? Their answer is always “NO.”
In fact, many Realtors who list short sales will list high because they are paid on commission thinking that the house should sell at list price. However, they never take into account all the repairs needed or the updates that are required to allow the house to obtain an appraisal at list price. Therefore, their short sale sits for months and ends up going to foreclosure sale. In fact, because they said they didn’t go meet the BPO Agent and just gave them the lockbox code or they have an electronic lock box on the house, the BPO Agent is able to get into the house and only spends about 5 minutes at the house.
As a Real Estate Broker who gets commission on short sales, I would always like to get as much as I can, however, not meeting the BPO Agent can cost me big time and big money.
Since I am a Real Estate Broker and an Investor who buys short sales, this is what I always recommend to Realtors and Investors. Always list the property low, as it is not up to the Realtor, Seller or Buyer to tell us how much the property is worth; it is up to the Short Sale Lender. I never allow an appraiser or a real estate agent obtaining value on a home to go to the house by themselves, not even for my straight sales. The BPO Agents only receive $50 to $75 on a BPO and the Appraisers are receiving a lesser amount than they would receive if this was an appraisal specifically for the Buyer’s financing. The Appraisers receive $350 to $500 for mortgage appraisal when an individual is buying a non-short sale and they would receive $100 to $200 if it is a short sale appraisal completed for the Seller’s short sale Lender.
So … what do you say and take with you when you meet a BPO Agent/Appraiser for the short sale Lender? You must provide the following information: Purchase Agreement, Sold Comparables in the last 90 days if possible no more than 6 months and no further than .5 miles away, Repair Estimates from Contractors, Hardship Letter, Crime Report of the area, and anything else that would provide the BPO Agent/Appraiser with the facts about the house so that they can determine the “real value” of property.
Unfortunately, some BPO Agent/Appraisers will not take this information. Then what do you say when you meet them? Make sure that they are aware that the house is in foreclosure and the price that the buyer is willing to pay. How do you do this? EXAMPLE: I normally say I have an offer to give to you on this house in the amount of $150,000 and this is a foreclosure. I will then say that I have several contractor estimates for the repairs that are about $25,000. I might even make a joke that I am surprised to see an offer so high on this property of $150,000 with soooooo many repairs. I will say that it looks like about $25,000 worth of repairs and ask them if they agree.
Remember, you always start by telling them that you have a package for them including the Purchase Agreement, Comps, Estimates, etc. Always remember to build rapport with them so that they are likely to work for you versus working against you.
If you don’t meet the BPO Agent/Appraiser out at the house and provide them with the above information your value will always come in HIGH and you will have to wait another 90 days or up to 4 months before you have a chance to order another one from the Short Sale Lender.
Thank you so much to all of you who continue to send me your questions and topics that are most helpful for you to read about. Your Success is important to me, please let me know how I can help!!!
Like me on www.facebook.com/foreclosuresgonewild
Like me on www.facebook.com/sellfastrealty
Kimberlee Frank Broker Short Sale Expert
Kimberlee Frank is known as “The Real Estate Junkie,” for her unique ability to find ways to creatively help buyers and sellers no matter which direction the real estate market is heading. Kimberlee had already worked as a legal administrator for an Attorney, Builder and Broker for 18 years when she began her Real Estate career in 1998. She dotted the i’s and crossed the t’s on hundreds of real estate transactions and thousands of documents, making her an expert in real estate documentation. Kimberlee’s success began in Fenton, Michigan. She specialized in selling, purchasing, renovating, retailing and lease optioning single-family homes. She has helped many sellers get rid of their “headaches” and helped many buyers find their dream homes!
Since 2003, she has specialized in foreclosures and short sales. After realizing how many families were being forced out of their homes due to financial difficulties, Kimberlee had a heartfelt obligation to use her experience to help those families. She has mitigated and closed over 500 short sales with the mortgage companies, saving Sellers from going into foreclosure. In 2006, Kimberlee and her family moved to Florida. She lives in Oviedo and her Sell Fast Realty Office is in Winter Springs, serving residential and commercial sellers and buyers in multiple counties in Central and Southern Florida.
Kimberlee is also a Trainer and Mentor and has created several different “How To” systems on real estate. Her unique strategies continue to educate real estate professionals across the country. If you have a proven system to help others out of hardship, why wouldn’t you duplicate it and share it with as many people as you can? Kimberlee continues to work with this philosophy!
Kimberlee Frank has been featured on ABC, NBC, FOX, CBS as well as Wall Street Journal, Newsweek, USA Today and numerous other publications. She is the bestselling author of “Big Ideas for Your Business” (Advantage Media 2009). She was also selected as the #1 Short Sale Expert by America’s Premiers Experts.
Please contact Kimberlee at her office at 407-888-3433 to schedule a Free Facts About Foreclosure Seminar. She has numerous testimonials from sellers, buyers and other real estate professionals who are familiar with her giving heart. Whether it is 1 person in need or 1,000…..Kimberlee will educate them on real estate and give them a solution with a peace of mind!
Are you unsure what to do with your house? Do you need to educate yourself about your options. Click the following link Free Facts About Foreclosure for more information.
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
Filed under: Florida Short Sales
Like this post? Subscribe to my RSS feed and get loads more!