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In 2012 we had an San Jose Fixer Upper REO assigned to us for sale. This Single Family home with 4 bedrooms and 2 bath was located in the Blossom Valley zip code of 95123! We were excited with the assignment of the REO, but our excitement was quickly dashed when we discovered that the home had a pool which by all indication was going to be a huge problem to manage!
For one thing that the Santa Clara County now has regulations that require Pools to be maintained on an ongoing basis with treatment and cleaning since they could become source of bugs carrying West Nile Virus! If the property owner does NOT maintain their pool, they could be subject to fines as high as $150 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. So far so good. However, the geniuses forget to remember that sending an agent who is NOT familiar with the area is also fraught with Danger. And you probably guessed. The crazy agent who did NOT know the area, price this home some $60,000 ABOVE the value that we had recommended as the Listing Price.
So, despite our protest 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.
In short, this insane bank practice of getting multiple BPOs for the same property caused this San Jose Fixer Upper to linger on the market for more than 68 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.
What would you do if you had an Fixer Upper with a Pool!? Let us know.
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