I was doing a bpo for Ocwen and when it ask for 30 60 90 values. And this may be a stupid question but is a 90 value what it would sell after you have lower the price because it has been on market that long?

Sale price after 90 days of a normal marketing time frame is the highest price, 30 days would be to move the asset quickly would be the lowest price or an 'as is' price

That is the way I have always completed my forms but I was just checking because of the wording they had on their form. Thank you blazezone.

Our market is decreasing and a 90 day would not be higher than a 60. If the home is sitting after 60, why would a 90 be higher. I have been adjusting down for the decreased market and making a not as to why I am doing this. In our market you will not get more at 90 day than you would at 30-60. Most of the BPO's I have been completing ask if the market is appreciating/depreciating and at what rate? When I put in the percentage, it would only make sense to adjust down for this depreciating. This was a good question, because I have been doing the opposite of blazeone and have never been questioned. Love to hear what others are doing.

Good point, Allen Team. I have not had any of the companies question what I have entered, but I do want to value a property at the best price at any length of time.

I started this same subject a few months ago and got at least 2 full pages of responses. My RELO manager called me on the carpet for having the lowest price at 30 and highest at 90. The consenses of this group was my way. Low 30, high90. I didn't tell her that but continue to do it my way. The customers that I work for are my own and she no longer sends work my way. She is training all the newbies in the office to do it her way and I see that the work from her companies has slowed down.
Here's the way I see it. If you can wait 90 days you may get 100, but if you need it sold in 30 days you will only get90. It's because you have to wait longer for someone who doesn't have a clue about the market to come around and pay the higher price.

I think the key here is what is your local market doing?That determines pricing strategy.

2 ways to look at it on pricing.30 day fast sale then if it is an appreciating market it will be worth more in 90 days than it is now so you adjust upward,how much depends on the rate of appreciation for that area and demand for that specific kind of property.

Now if the area is depreciating then you would have a lower price in 90 days,also in 90 days the banks would be more motivated to get it off there books depending on how many non-performing loans they have going at any given time.

You would also have to worry about the property becoming stigmatized in 90 days and whether the bank was willing to do repairs carpet,paint to get a higher price.

If it's a dog property that's priced to high in 90 days adjusting the property upward will not make it sell any faster.

Yes there are idiot and investor homebuyers out there that overpay everyday of the week,they are my competition for buying investment property.

If people didn't overpay banks would be getting more realistic values for the properties in my opinion.I think when these arm's adjust which they are at a default of sub-prime loans at about 11 percent nationwide compared to regular loans at about a 1.8 percent default rate banks will not be as greedy with tons of pre-foreclosures staring themin the face.

jmho

You are looking at things totally wrong. You are not understanding the question, they want a fair market value for the home. If it were on the market for 90 days what would the expected sale price be versus if it were only to be on the market for 30 days. The 30 day figure will always be less because there is less of a window of buyers. 90 days or 120 days should provide the most visists and generally a higher price, whereas 30 days gives you less people seeing the home and generally a quicker timeframe for having to make a decision on the final sales price. many companies look at 30 day values as quick sale values and are looking for a price to accept quickly so they don;t have much more in carrying costs. They would rather sell a $300K home in 30 days for $265K versus waiting 90 days for offers and only being able to get $275K. Therefore the 30 day value is lower. This is how the question should be percieved. I hope this makes sense.

I look at it the same way Real Deal does. The average house in my market takes about 90 days to sell, so the 90 day figure is fair market value. If you want the house to sell faster, you have to discount it, so the 30 and 60 day values are lower than the 90 or 120 day value.

My 30 day is always lowest. My 60 day may be slightly higher than the 30 however 90 day may be the same as my 60 or lower than my 60 day depending on what the market is doing in that particular area. Not all of our markets in our surrounding counties are depreciating but if they are, the 90 will be less than the 60 in most instances.

Real Deal I don't think you could have said it any better than that, nicely done

Probably, 90% of the time I put the same prices for all time periods except when specifically asked for a quick-sale price.

In our market, whether you have 1 buyer, 35 buyers, or 100 buyers, they won't necessarily pay more than the comps show the property to be worth.

Also we have a large seasonal factor and a house could sell for more in 30 days than if you waited for a higher price over a 90 day period.

Real Deal got it right, but everyone's gut feeling is right too...

The fact is if you don't sell it by day 59 the price is going down. We all know that. But there is some truth in a lower price going quicker... lets assume there's no reductions. The question is how low would it have to be priced to move in 30 days instead of 60 90 or 120.

Here's where the rubber meets the road... several computer BPO forms will not accept anything except an increasing price in those blanks. I always put the price I think it should be in the middle and 5-10k less in 30 and 5-10k more in 90. Keeps life simple, makes the computer happy. By grouping them tight like that, I can stand behind any of the three numbers.

What I love is the form that asks for a low, high and final value and then a list price. It will not accept a list price lower than the high value. (Don't know about y'all, but I try not to list homes above what their absolute high value is). Just to show my opinion of that plan I've started putting the list $1.00 above high value... like $749,001. So far it hasn't caught any flack.

Anyway, to make a long answer short just make sure any and every number on the form is in the range you'd be willing to defend and then give 'em what they want... ascending values from 30 - 120 days. If all three numbers are FMV it don't matter if they're in the wrong order.