West Sacramento Short Sale Information - How is Value Determined in a West Sacramento Short Sale?

Mike Rigley Certified Default Advocate, Distressed Property Expert and your short sale specialist here thank you for joining us. Today let’s talk about how value is determined in a West Sacramento Short Sale?

Before the lender / servicer / investor can make a decision on your West Sacramento Short Sale, they have to determine the Fair Market Value of the property. There are several ways lenders go about this with some being more accurate than others depending on the property type. They include the Broker Price Opinion or BPO, the Assessed Property Value or APV and the full appraisal. Today let’s talk about the most common valuation technique, the BPO

A BPO is basically another agent’s estimate of the value of your property. The BPO agent will come to the property take a series of interior and exterior pictures, pull comparable properties in the area and supposedly make adjustments for condition, square footage and other discrepancies between the comparables and the subject property. The issue with a BPO is the agent is often paid as little as $50-$75 to complete the BPO. For all that needs to be done that’s not much for the time involved.

While there are some very good BPO agents, there are an equal or greater number who don’t put much thought into adjustments of value or condition. Their concern is not that a bad BPO may cause a homeowner to lose their home to foreclosure, but how fast they can get the BPO completed and paid.

A BPO for a tract home should be fairly close but for older, rural or unique properties it can be a disaster. Once the lender has the valuation they pretty much stick to it right, wrong or indifferent. So you can easily see how a bad value will screw up a West Sacramento Short Sale negotiation. Why a lender will spend so little on something so very important is beyond me but as they say, it is what it is.

Next time we’ll talk about the APV and appraisal.

Is a West Sacramento Short Sale Right for Me?

To get a better idea of when your West Sacramento home will be worth what you owe, log in to www.shortsaleandloanmod.info for a free estimate or call me today for a free no obligation consultation or for the latest West Sacramento short sale information. Call me today and sleep better tonight; you’ll be glad you did.