Well and Septic BPO adjustment?

[Stone]

Gee, it's nice that at least two out of the first four answers didn't immediately try to bash (thanks PropertyEconomics and Randolph). I was a licensed residential appraiser from 1990 - 1997 in Indiana. Just a simple question since we list a lot of REO properties and I haven't been in the appraisal realm for many years. Complain to Fannie Mae. I'm not taking anyone's business. Grow some skin.

I don't do mortgage work, so you aren't taking business from me. It isn't personal here. Sorry.

FTR - if you were a licensed appraiser, you should know how to find the answer to your question and that it doesn't have a general answer available on a message board.

 

[dobie]

Gee, it's nice that at least two out of the first four answers didn't immediately try to bash (thanks PropertyEconomics and Randolph). I was a licensed residential appraiser from 1990 - 1997 in Indiana. Just a simple question since we list a lot of REO properties and I haven't been in the appraisal realm for many years. Complain to Fannie Mae. I'm not taking anyone's business. Grow some skin.

Whaddya expect...hugs and kisses??

 

[Bburg77]

Sure, and he is going to do all that for a fee of $45 per BPO!

FYI Ron, these BPO's are on properties that Fannie is sending to us to list. I'd rather not have to do them at all. CMA works for me and I can price better than 99% of the real estate agents out there. Just like other listings, we don't get paid a cent unless REO's sell, then it's strictly commission.

 

[PropertyEconomics]

Bburg77 ... this is a serious question from me ... What exactly is the difference between a BPO and a CMA in your opinion and as it applies to your current assignment?

 

[Bburg77]

Bburg77 ... this is a serious question from me ... What exactly is the difference between a BPO and a CMA in your opinion and as it applies to your current assignment?

Nothing, technically. I just have a program (Xpert CMA) I really like that I use on "retail" CMA's. In this shifted market, I place much more emphasis in how a potential listing is priced versus the active competition. A home must present the most value to potential buyers or it will languish and they will move on. That is all that matters. Using historical sold data only keeps me chasing the market, not pricing ahead of it as it continues down where I am located.

Also, I don't have to work under the program formats and reports set forth by the BPO.

 

[Mark K]

Mike,

From your forum name, I'm guessing you're from Brownsburg and having worked extensively in that area I can tell you that well/septic vs. city util can make a big difference to some buyers. There are many factors that come into play and there is no standard adjustment.

In some cases it makes no difference and in others, its huge. In a couple of the subdivisions just north of I-74 the septics are nearly all failing or will be soon and if I was an agent there's no way I'd even show those homes due to the future liability. I'd make sure to use sales in the same subdivisions and adjust for other factors rather than leave those immediate areas.

In other newer subdivisions where the septics have been designed to much higher standards with better drainage, it may not make any difference.

Every case is different and any adjustments I make are based on personal experience from appraising and from having owned a brokerage in Hendricks County in the late 80's -early 90's.

If you want to talk more, send me a private message with you phone number and we can discuss your subject.

 

[PropertyEconomics]

Nothing, technically. I just have a program (Xpert CMA) I really like that I use on "retail" CMA's. In this shifted market, I place much more emphasis in how a potential listing is priced versus the active competition. A home must present the most value to potential buyers or it will languish and they will move on. That is all that matters. Using historical sold data only keeps me chasing the market, not pricing ahead of it as it continues down where I am located.

Also, I don't have to work under the program formats and reports set forth by the BPO.

Your post goes to many of the issues that appraisers face. Being mandated to comply with a "form" ... well you can see how restrictive that is. It doesnt present the whole story. If I were you I would lobby hard, if obtaining a listing is your true goal and I honestly believe it is, that use of the BPO form doesnt meet the needs of the client.
Id love to see Realtors get back to CMAs, doing what they do best, the BPO to go the way of the Edsel, and appraisals actually meaning something again.
I hope you have success in obtaining the listings and I hope they turn into sales for all of us.
Again ... best of luck.