Melissa suggested I submit this short story as an example of what sometimes…To agents, sellers and buyers can be a mysterious and even unbelievable happening in our industry.
- SHORT SALE PROPERTY IN PEMBROKE PINES
- VALUE ESTIMATE OF $380,000+/-
- LISTED AT $399,000
- SOLD FIRST TIME AT $380,000
- BPO’S COMPLETED BY SELLER LENDER ALLOWS $380,000 SALE TO PROCEED
- DEAL DIES OVER BUYER FINANCING
- SELLER ACCEPTS NEW $370,000 OFFER PRESENTED IN 1 DAY
- BPO’S COMPLETED AND LENDER ALLOWS $370,000 SALE TO PROCEED
- (SALES IN AREA STILL SUPPORT $380,000)
- BUYERS LENDER SENDS OUT APPRAISER/BUYER OBTAINING 80/20 LOAN
Here is where the bullets stop and more info is needed…The buyer for the house is a licensed Realtor purchasing the home for his family, that’s borderline but the sellers lender allows it. Short Sales cannot be sold to family members, relations of any kind and some banks don’t allow Realtors to close on them as they feel we have an advantage and are TAKING advantage…This lender believes the buyer WILL be living in the home…They even allow his commission to be paid to him! That’s cool! So the appraiser submits his value report at…wait for it…Sold for $370,000 and the report is…..$300,000!!! WHAT!!?? The appraiser stands by his number! He won’t listen to or look at the REAL comps.
This is a short sale folks. That means the SELLERS lender has also hired 2 independent agents to do a BPO (Broker Price Opinion) on the home…Why did the allow the sale to move forward at $370,000? Because the BPO’s show that’s close (within 2-5%) to the home value. The appraisal is so low, the lender, before allowing it to be submitted to the file, calls us and the buyer (an agent that knows the report is silly and way wrong as well) and discloses the $300,000 figure to us. If this appraisal is submitted, plain and simple the deal dies and the buyer loses the house. We would sell it to ANOTHER buyer again…BUT! The buyer wants the home and the title agent handling the short sale even states she’s not calling the sellers lender with such a ridiculous value…Get a NEW appraisal Mr. Buyer and let’s see what we see……
5 days later a new appriaser visits the home and 3 days after that the new appriasal is complete…
Bottom line is…In 8 Bays the market JUMPED more than 20%!! INCREDIBLE RIGHT!! C’Mon man, that’s not it at all…What it was, was a crazy (licensed) appraiser and nearly a foreclosure.
Appraisals are one man (or woman) and one day. They are NOT perfect and they are challengeable if stopped in time. Kudo’s to the lender for calling us! The deal closes next week!