As investors negotiating a short sales we want to control the entire process as much as possible. This is especially true when trying to influence the Broker¡¯s Price Opinion (BPO). When speaking to the lender, appraiser, or realtor it is best to seize control of the situation quickly and smoothly so that you may influence the value of the home. Influencing your BPO or appraisal value of a home to its lowest possible point is the best way to increase your profit spread in the entire short sale process.
Your influence of the BPO begins in your conversation with the lender. You must convince them that their appraiser or broker must contact you to go through the home. This will give you a chance to give them the lowest property comparables that you can find. It will also allow you to point out all things that need to be repaired in the home, and all other negative aspects of the home such as location, bugs in the home, carpet condition etc.
Statements such as, “I am assuming that you are going to have a broker, or an appraiser, go by the home to conduct a property evaluation… I just wanted to let you know that I have access to the property and can let them in to view the property. What I normally do is put a combo box on the door and leave a key inside. That way they can come by and look at the property anytime that they would like. Just have your realtor or appraiser call me to give me a general time when they would like to go by and I will be sure to put a combo box on the door.”
This statement opens the door for direct communication between you, the loss mitigator, and the appraiser. If the mortgage company only requires a drive by appraisal and the exterior is in good shape they will not know of any work that needs to be completed in the interior. If interior of the home is a wreck and needs a lot of clean-up or rehab, the bank must know about it. You must make sure that the appraiser gets into the home. If the appraiser were to see the inside of the home they would lower their price opinion on the property. It is your job to ensure that the loss mitigator who represents the mortgage company knows about the exact condition of the property.
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Increase your real estate profits by negotiating successful short sales. To learn more ways to influence your BPO and insider secrets as to why banks accept short sales, visit us on the web at www.MyInvestorLink.comand www.SuccessfulShortSales.com.
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