GOT THIS EMAIL TODAY.

I have no idea how you came up with $240k on this home. There is no way the comps could lead you to this opinion of value for this home. Poor BPO’s are going to keep us in an unrecovered market for an extended period of time because the banks are relying your data as if it were accurate. Because of this there will be a continued disparity between what buyer’s are willing to pay as fair market value and what these bank’s want, therefore more homes pushed to foreclosure which will push values further south. Did you make any adjustments for size, home site, beds, baths, garage and condition?

Now we know who to blame and all along I thought it was the government and its policies.

Who or what sent you that email?

Not knowing your market, I obviously do not know who is right. But I do have to ask, does the other person have some validity to their question, or is it an absolute that you are right, they are wrong?

Not just in the REO market, but in the general real estate market, many agents are notorious for telling the "powers that be" what they want to hear to get the listing.

In my market, an awful lot of FHA deals are closing signficantly higher than conventional & cash deals. And in my area, I often see cash deals closing too high on high end properties--no appraisal & a gullible buyer. Some of these buyers are going to overpay no matter how good the advice from their agents--these are generally 2d home purchases in which they buy the furniture, artwork, etc.

But, I'm suspicious of the appraisers in these FHA deals, I see yet another runaway train coming down the track.

"Telling them the number they want to hear to get the listing"....you are so unfamiliar with REO listing assignments if you are making that statement..
REO's are not assigned to the realtor who did the BPO for a failed short sale. This is a typical appraiser comment when making the argument that appraisals are somehow superior to BPO's cause the BPO agents "going get that listing" if the short sale process fails.

The REO assignment process is completely separate from the short sale process. Anyone that's in the REO business knows that. .

So, I'm guessing that you did the second opinion BPO on a short sale and the listing agent is the one who sent the email?

BTW: Thank you for pushing homes to foreclosure all by yourself!

The assertion in the email that 1 single BPO is used to establish value is absurd. So I do not take the question raised as a legitimate question.

If we go on the assumption this is a short, then the note holder is making a business decision whether to go short or let it foreclose. They are not basing that financial decision on 1 agent's Broker Price Opinion.

Right-O. In my time having done about 9,000 BPOs, I would estimate 1,000 of them were short interior orders. None have converted. In fact, most of my REO listings I spy for the first time on my initial O check...not all but most. The point being I have not done an exterior on them either (in most cases).

I am the agent that completed the interior BPO.

The email is from the listing agent that has the “short sale”.

It’s a cookie cutter neighborhood with three sales on the same street. All were between $240K and $290K. The listing agent wanted me to come in at $195K.

Yes, and your welcome for the foreclosures.

Thank you REOBOSS for your hard work in Florida which enables people to lose their homes in Colorado, which sometimes allows me to receive an REO to sell. Which keeps food on the table for my family and for me to pay my bills.

An agent called me once to discuss my BPO value - I told him that I was sorry about all the low-ball offers but I couldn't pretend I didn't find the model-match 4 doors down that sold for $30,000 more.

Sometimes, you're going to get low-balls and that's all you're gonna get and we see it all the time. I mean, we see short sales fall off the market and pop back as REO at the same, or even a higher price, and it sells quick.

It's because no one loves a short sale and it's hard to find a buyer willing to wait forever for it to close. In other words, it's not the price, it's the 3-month escrow that no one wants...

thank you.... i agree 100%

100% Agree, there is more reluctance on buyer's to sit and wait for the Short Sales to proceed, when they can get an answer on an REO in days...even though the REO may need some work.

The big thing is buyers dislike the process that short sales require them to go though. Buyers seem to be willing to pay a premium for an absolute, that is why sometimes the REO's sell for more than they were listed as a Short Sale...or maybe there are too many BPO agents pushing all these sellers into foreclosure.. Just kidding....it is the government, oh no it was the greedy loan officer who put them into the loan,, nope the Appraiser who inflated the refinance value, oh wait it is the greedy investors who specualted on values rising, maybe I am wrong again and it was all Mr. Mozillo's doing from C-wide?

Gosh this list can go on and on for who was/is or will be "Responsible".

Rant is over.