What do you do when you have to find a value of a way under priced short-sale condo? I know this bpo company states that the value can never be over the list price. The unit was a complete rehab with high end upgrades. The list price is way off. Even looking at the sales comps, the list price is 15-20k off. Usually it is the other way around with a over-priced listing. geez.

We are not allowed to use short sales for actives. Only solds. The agents putting them all over the map price wise is the reason we can not use them. You are in a bit of a pickle since your BPO company will not allow over list. I would try to tell them the truth. That is was out of whack when originally listed.

Its my license on the line. I give a BPO and thats it. Want me to adjust my price OPINION? NO. Its my opinion. Its my license on the line. This is my Brokers Price Opinion. I signed and said this is my opinion.

Tell me i'm to high, to low in price and give me new criteria to fir you need, I can do that. Put it in writing though so I have a paper trail, and pay me the for the legit BPO and for the second BPO.

Its my license at risk with every BPO. If i'm way off one way or the other, its my license they come after. Dictate the price point you want as a client, find another vendot. I will give you a BPO and justify my price.

I know. I will have to give them the list price as the 90 value. I have no choice. Too bad. The policy of this company is nothing over list. Thanks for your opinions, I appreciate it.

Wow- I probably value half of my BPOs over the current list on a short sale. I document it well, have comps to back me up and thats that. In my market, I see short sales listed well below all the comps. I never get any flack for valuing higher than the list price....just have the comps and explaing yourself well..

I have to agree with Dayton. Get it in writing that they will not accept any comps over list.

Your license is your livelyhood. I would NEVER put mine on the line. Easier to find a new customer than lose it.

I don't let BPO companies dictate to me where a price is. The comps are the comps and I give my opinion based upon the price I used. If your sale/list comps are way over the listed price that is not your problem. I based my BPO on the comps and my experience in the area. End of story. Because I take a hardnose approach I do not do BPOs for everybody. I stick with the companies who appreciate the way I do BPOs.

I know. I just had another one fail QC because this company states value cannot be over list price. I already stated that I felt the property was listed undervalued. Thanks for your input.

First of all, you are saying that you already have a predetermined value of the subject before you even pull the first comp. So if a LA lists a short sale property at $1, you need to justify valuing the subject at 99 cents?

I know my analogy is extreme and asinine, but what I am saying is you have an obligation to "the client" to evaluate the property for what it would sell for at an arms length transaction under current market conditions. You need to remember, who set the list price? Was it the owner who just wishes to walk away from the property with minimal credit damage or an overaggressive LA who wants offers? Too many times I have had to do BPOs on short sale seeking listings and document why my value is above list price. To put it politically correct I usually state in my remarks something like, "The subject's current list price is more reflective of a quick sale value, rather than a 90 day value based on all compiled data."

You should value at what the comps tell you the value truly is, not some shumck LA who is undervaluing the property to unload it quickly. My $0.02....

Best of luck!!

Like these are Laws of Physics or something.

Objects Heavier than Air cannot fly either !

yes, I agree. It is a short sale priced under valued in hopes of receiving multiple offers. Ok. the bpo company is like who cares. well, they didn';t say that exactly, but I know the rules. So it will be priced low and then the bank will receive a higher offer and most likely take it because the appraisal will come in at the correct price. exactly what I had with my buyer at my last short sale closing. the bpo came in 15k under, priced about what the listing amount was, the appraisal came in much higher and then the bank countered with my buyer.

this is the problem I ws having with Inside VAluation. I ended our relationship as a result. The subject would be listed 20% lower than any other sold or active listing with that GLA, age, style and other characteristic. I would value it according to comps and note the He** out of the order. They would come back with some comments telling me I could not be over that listing price....So, they can find somebody else to do the work. But, my other clients have not said much about it.

here are the comps, here is my value and here is how I got my value.....next.

yup. same story. I submitted the order the way they wanted it but noted that it was priced under value in hopes of multiple offers.

I won't do it. If they can provide better comps for me to change my value....sure I will. But, because they want me to? Nope. If the comps do not support the value they desire, I am not going to do it.

well that is their policy. I have it documented, I also have a policy of their expectations printed. so it is what it is. Frankly, it was priced under value. bozo listing agent anyway. I have only seen 2 so far like this. Hopefully will not see anymore. That was 15 orders ago anyway. Thanks for your input.