BPO Troubles With Banks Will Pick Up Again
Kevin and Fred, the leaders of Group 46:10, Arizona’s foremost short sale team, are chatting today about pricing and listing. Before you shut the video off because you already understand how to list and price, hear them out. Depending on your market, you may not be experiencing the same stuff as Kevin and Fred are in Avondale. As several of you know, the deadline for taking advantage of the tax credit has passed. What we are seeing right now in the market is a slight bit less enthusiasm from home buyers and home owners. The supply is beginning to grow and that usually leads to prices going down. When you see that tendency, you tend to have more disagreements with banks concerning the value of properties.
There are a lot of of the same obstacles in 2010 that we had in 2008. Lenders love to look at sold comparisons. Nonetheless, if you want to deal with the variability in the market you need to compare values with active and pending listings. Price yourself ahead of the market if you want to sell the residence.
Right now, the BPO’s are coming back higher than what they ought to be in Kevin and Fred’s opinions. There have been discussions with Chase bank where they have raised the BPO price because they oppose with the BPO agent’s value.
It is important to recognize that there will be more BPO troubles in 2010. Other pieces of the nation may not experience these troubles if your market has only depreciated 10-15%. Yet, in the Phoenix real estate market, with depreciation levels approaching 60-70% in some cases, there will be BPO issues.
The bank will most likely make some errors and foreclose on some properties. Don’t be shocked if it takes them a while to adjust their own practices through this change in the market.
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