BPO and Appraisal

[residentialguy]

They aren't asking me for my opinion of a listing price, they want an opinion of market value for a vacant and many times damaged home in less than average (fair or poor) condition within a defined marketing time.

Thanks for clearing that up. I do have one question>
What about the seller in their definition of market value? Do they want the most probable price they could get putting it on the market as a REO or that of a typically motivated seller selling that vacant home in poor (current) condition?

 

[coolhandluke]

Thanks for clearing that up. I do have one question>
What about the seller in their definition of market value? Do they want the most probable price they could get putting it on the market as a REO or that of a typically motivated seller selling that vacant home in poor (current) condition?

RG-The client and seller, FNMA, are motivated to get the highest possible price for their asset, so I am told. But there are limits to that potential sale price that a typical non REO property will not have, such as; the less than average condition, the reduced appeal common to a vacated property and possibly previous marketing as a short sale, which can also effect and bias subsequent asking prices.

 

[RustyLingerfelt]

Has anyone had a problem when client orders a BPO and an appraisal and wants the appraiser to reconsider value?

I appraised an REO and the client had already received a BPO with a value 30k less than my appraisal and they are requesting that we meet in the middle on the value. WT@!!!
The real estate company sends back message to client that any listing amount over 35k it will sit on market for 90+ days. Their comps are not comparable.

In my opinion the real estate company wants a fast sell, or knows someone who wants to buy it, put a little work into it and make a profit of 30 to 40k. Has anyone seen any evidence in the market of this situation?

I often have this same problem, the situation appears to be LLC relationships. You see you did an unbiased appraisal for the lender, the real estate agent with limited or little training has to get the BPO low enough that they can buy the thing with their son's, daughter, husbands, uncles LLC and turn a profit. If they bring it in at the appraisal price they can not do a clean up and sale.

 

[residentialguy]

RG-The client and seller, FNMA, are motivated to get the highest possible price for their asset, so I am told. But there are limits to that potential sale price that a typical non REO property will not have, such as; the less than average condition, the reduced appeal common to a vacated property and possibly previous marketing as a short sale, which can also effect and bias subsequent asking prices.

Yes, indeed it can. But, while FNMA wants to get the highest possible price, they can't over look the fact that their name on it is akin to wearing an Pro Obama shirt at a Tea Party.

 

[coolhandluke]

Yes, indeed it can. But, while FNMA wants to get the highest possible price, they can't over look the fact that their name on it is akin to wearing an Pro Obama shirt at a Tea Party.

RG- Now thats funny, but I keep hearing on Fox news that Tea partiers are not just all Republicans, some are independents, libertarians and even, yuk, democrats. Perhaps the biggest thing that all the tea partiers, and Fox news have in common is an inherent loathing for the president and the insatiable desire to see him ousted next year. They just may get what they wish for.... Perry/Christie in 2012! Sorry Palin/Bachmann.