The BPO - how can I meet the appraiser?

Question

So in the book I'm going through (Monica's), it talks about the BPO as the most critical part of the short sale.

Some research and googling has this sentiment echoed everywhere; you want to meet the BPO appraiser at the site, show him all the problems, make sure the value comes in low.

This is doubly serious in the short sale I'm looking at to propose (the homeowner has walked away and was planning to let it foreclose as he no longer has an income), which has all kinds of issues and honestly is only a reasonable deal if I can get it for way below market value.

But my real estate agent says that there's no way to do this- that the lender gets a third party appraiser who sends someone out who has the lockbox code, who can show up at any day at any time and whose name they don't give us.  So there's no way to meet or contact the BPO appraiser beforehand.

Is this accurate?  Anything else I can do besides preparing to appeal it if it comes in high?

Tom A. · Answer

What your agent has described is typical, but that's not the only way it can be done.

The listing agent controls access to the home.  They can remove the lockbox (or simply not allow the code to be given out) and require that the appraiser or anyone else make an appointment to gain entry.  There's your "in".

David Beard · Answer

Where the SS's are MLS listed, the listing agent has a greater incentive than anyone to bring in a low BPO.  An inflated BPO will probably kill their chance of selling the place and getting any kind of commission, correct?  So though you don't have full control over the transaction, SS's are a somewhat unique situation where both sides should be on the same page as far as bringing the BPO in low.  Surely the listing agent would be cooperative, if not leading the charge, in meeting the BPO agent or appraiser, pointing out all the flaws in the house and the neighborhood, bringing their own BPO to hand over as a suggestion, and building a little sympathy for the homeowner who is under hardship and just trying to move on with their life.  This is my sense of how it should work, though I'm sure there are lots of listing agents that aren't very effective in moving SS's, due to the BPO's as well as not putting together a perfect SS package and negotiating effectively.

Monica, you do these every day, so correct any misconception I have there.  You also mention the SS negotiator being involved.  In your case, this is someone who works for you, correct?  I know there are obviously lots of short sale negotiation companies out there that have field-level "expertise" with all the major servicers and know how to push these through.  For the average investor who is not even licensed but comes across good short sale opportunities through their networking and marketing, how/when does a short sale negotiator come into play.

Steve Babiak · Answer

I have been to many a REO where the lockbox combo that I was given did not work.  Think about it: once you have the combo, you can open the box and then change the combo on lots of lockboxes.  If your agent uses that kind of box, just change the combo!  Nobody but you getting in that way.

Monica Breckenridge · Answer

I believe in the transaction you are currently doing it is a short sale that is listed and it's not a deal you have full control over.  This is one of the many reasons why I don't like to make offers on the MLS because I can't control the BPO.  What you can do is have your buyers agent contact the listing agent and ask if the buyers agent can be the point of contact for the BPO.  What you can have him say is, "we both want the deal to go through, so what i want to do is meet the BPO at the house to point out all the damages, we both want a commission and I'm willing to do this for the both of us."  maybe the listing agent will agree.

The best way to do it to be in full control.  Your short sale negotiator gives the bank your buyers agent's # as the point of contact for the short sale.  If the house needs to be listed because the bank requires it, then have your realtor become transaction broker.  You can leave a lock box off the door if you want.  If you do have a lock box on the door and it is listed, then make sure the showings are going to the agent.  There should be showing calls because it's Under Contract or Pending with no showings.  So the only call you should get is from the BPO or appraiser.

If for some reason the BPO tries to sneak around you and call the homeowner directly, you need to train the homeowner from the first meeting that they need to call you as soon as the BPO or appraiser calls.  And when you know that the BPO is ordered, call them again to remind them.

Chris H. · Answer

I see! So, how could I go about convincing the listing agent to do it that way?

The BPO - how can I meet the appraiser?

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