Our last San Jose REO assigned to us was a perfect example of experiencing the bank’s insane practices on valuations! This Single Family home with 4 bedrooms and 2 bath was located in the Blossom Valley zip code of 95123 ! We were excited about our opportunity with this REO, but not about the pool that came with the property.
Santa Clara County now has regulations that require Pools to be maintained at all times to prevent source of bugs carrying West Nile Virus! If the property owner does NOT maintain their pool, they could be subject $150 of fines per day. But that was not even the cause of the major problems once we completed our Broker Price Opinion.
See the geniuses at these banks have concluded that trusting the Listing Agent‘s information might be fraught with Danger, so they order a 2nd Opinion. However, the out of area agent priced this REO about $60,000 ABOVE the value that we had recommended as the Listing Price.
Despite our attempt to educate the Asset Manager as Asset Management Company they were powerless to rule in favor of our Listing Price since the other price was much higher. And no bank can ever resist the temptation of getting higher price for their REO home.
This insane bank practice of getting multiple BPOs for the same property caused this San Jose Fixer REOs to linger on the market for more than 78 days before an investor took a chance on it. Another inhibitor to the sale was the pool which taught us a lesson that most investors want nothing to do with a pool on their rental property. In fact the investors who purchased this home covered the pool.
Have you experienced crazy prices from banks?! Let us know.