Did an exterior BPO on Short sale listing.
Still listed as active at 249,900.
Sold for 340K at market peak in 2005.
I valued it at 270K based on sold comps.
Mill wants me to replace comps and value close to listing price. I have often come in higher than list price with short sales before with no QC. Just because it is listed below market does not mean it is actually worth that much less. I think they just price it low to sell it as fast as possible to avoid foreclosure. Plus I think the lender would like to know the subject it worth more than the list or sale price. More likely to give a mortgage on a house valued at 270k even if it is listed at 249K. What do you all think?

If it's your honest value and the comps back it up, I would stand my ground. I get really ticked when they want me to change values "just because" no matter whether it's a short sale or not, and I argue vigorously about it, but you have to be prepared to do so and believe in your info.

I agree, if the value you are coming with is what is in line with the comparable's in the market no changes. Usually if my bpo is higher than current list of subject, I note that area comparable's are indicating a higher than current list value. Unknown as if subject listed lower than market value to obtain multiple, market value offers. I also note if property has been listed for 1 second/under agreement within 24 hours of listing.

"Mill wants me to replace comps and value close to listing price."

the BPO mill has no business trying to influence your value. the manipulation never ends in this industry.

Gotta agree with Shana on this one. How long has the SS listing been listed at it's current price? It sounds like the cubical dwelling QCer at the mill, just wants everything to fit in a nice little box. Life nor the real estate business works like that.

Total DOM 252
OLP was 309,900 At current price for 99 days
Replaced 1 sold comp, could only go back 3 months.
Kept my value the same and explained why.
It got approved.

One could easily argue that at 252 CDOM, the subject has become a stale listing. Back when I was selling homes, I would be hesitant to show homes with more than 90-120 DOM, as I felt newer inventory had more to offer a buyer. Older inventory were more prone to having "issues".

I'm glad the mill approved the BPO, but one should never have a predetermined value of a home IMHO. Let the comps dictate value and comment accordingly.

This is so true.

I used to have a pre-determined opinion of my Subjects' value.

But the market has a mind of its own.

Sometimes I will go out to do a fresh BPO on a Subject that I've valued 4 or 5 times before. It's best to NOT know what the prior values were . . . . the most recent Sold Comps will be your guide.

It's amazing . . . . values don't always move as you'd expect.

I was recently challenged on one where my prior values showed a clear line of descent over the past 18 months or so, when suddenly we're on an upward curve. I was asked "How could this be ?"

The Comps had dictated the value; but the condition of the Subject had changed . . . . it now had tenants who were taking pride in the place where they lived, the lawn was mowed and some ornamental plantings, there were curtains and drapes on the windows; an improved curb appeal. It presented a different impression from prior visits, and the Comps supported a higher value. So it was pulling out of that downward curve, and was on a upward trajectory.

I didn't consciously make that determination; the Comps did it!

It doesn't matter how long a short sale has been listed at the current price if it's been under contract the whole time with the junk offer submitted to the bank they have been sitting on for months.

Pay close attention to the wording in MLS, words like "one offer already submitted to bank", or "no showings" ought to tip you off to this practice. Or try to set a showing (not a BPO appointment) and see if they will let you view the property. I have seen an awful lot of short sales listed in the MLS as "active" that in fact have been tied up with a lowball offer for months.

I agree with Shana, too, but it doesn't change the fact that the mills will try to get you to change your value. Just make sure you're on solid ground in the first place. If it wastes enough of their time perhaps we'll eventually discourage them.

doesn't everyone agree with me? :O)

I agree REO's are a dime a dozen.

Give em what they want, you may need the $50............................Happy Thanksgiving

Thanks and same to you.
I usually figure out a way to get it through QC.

Hate short sales for this very reason. Listing agent almost always underprices, then it goes under contract and I have to justify why I would list at a higher price. Oh, the fun never ends in this business.