I have a lien holder asking for a BPO on two properties in a new subdivision I represented. The developer is going through bankruptcy, and I have some strategic information needed by the bank on these properties. The bank is amenable to my keeping the listing.

I have no idea how to do a BPO, what is entailed--none of the basics. Do I need to buy software? Can anyone briefly explain how I start on this? Do I ask this lender for their forms?

I have all the vitals on the subdivision since I sold all the
other units. Also, bank wants it by Tuesday. Please help.

Thanks,

It's just like a CMA.

A BPO is just what it says it is, an opinion of value. You'll want to pull comps and basicly do a CMA just like money said. The lien hold wants to know the value of the properties without ordering a full blown appraisal....

Did the bank give you the form that they want you to use? If not, request one. When you get it, you will see what information they want. As the others here said, it's like a CMA. Good luck.

You might sign up with a BPO co and look at their forms; some you can download blank.

I would request the lender's forms. If they area small local co. they may not have their own.


I have a BPO form in a Microsoft Word format.

Got PayPal??????

If you still have your textbook covering basic principals of real estate, you can look up "CMA" for a refresher on the subject, plus an example or two.

Also, my MLS gives me a way to create a CMA for a property. See if yours does. It might be sufficient for what you need.

Use search function in this forum for "adjustments" and try not to adjust for every little thing...and base your work on good advice found in here and in your textbook.

You are in a new subdivision, so that should help.

Don't forget to check with your broker.

Good luck.

Also, if all else fails, maybe you can hire one of them done and ask that person to explain the form to you, then you can do the other. $50 for some training...not bad. Again, check with your client first. All they may want is a good valuation, and it may not have to be yours. Maybe your broker will do it for you and you can work something out.

Problem is that I am the broker! I strictly represent new construction with my husband's and my subdivision and our former partner who has gone into bankruptcy. Contacted bank for form and they just want a CMA and narrative.

Adjustment question: There are 5 units (out of 20) which are going on the market with this bankruptcy. Three are incomplete which is an advantage because these units are very high end, customized homes. The subject properties are finished with a look that has limited market appeal. And this market loves the opportunity of selecting every item in the home!

What would you deduct for having 25% of the subdivision on the market at once? What would you deduct for the already finished-limited appeal aspect of the subject properties?

Thanks in advance for your input.

Hollygal

It looks like you are making this much harder than you have to. Make a simple CMA telling them what the proprty will sell for, if the bank is not providing forms this should take you about 10 mins. you must have an idea what it is worth. Just provide some recent sold data if there is not enough in your sub division than move to another. there must be another place that has some new houses being built.

If you Google BPO Form you can find plenty of examples.

OK....don't know why I'm doing this but,

FREE BPO basics:
Provide 3 sold comps and 3 active comps. I wouldn't even make adjustments. Just explain price differences.

Sounds like the bank is only looking for competance. Much shorter than the avg CMA (IMO).

hows this for basics...

don't do one unless you know what your doing...

if you have no clue...why would you jeopardize the quality of your own listing....sounds like your in over your head...id find someone to help you...that's a lot better then botching the deal.

This person is a freaking broker! How in the world can she not know how to do a simple CMA that justifies her price. Maybe this is why they are in bankruptcy - long before building commenced they should have figured this one out. Did they not look at construction costs vs. what the market supports for such construction? It's all so basic, I can't believe....

Okay, I can believe. I just don't want to.

Moneymike is right. If you are mot familiar with it then get someone to help you or refer it out.

In fact there is something in the code of ethics that requires you to do just that, so you can provide competent representation. I can't site the exact article but I saw it in my continuing ed a couple months ago.