When Home Owners negotiate with a bank to Short Sale their home, home’s Fair Market Value is often a source of massive dispute. During this process banks use a type of appraisal called Broker Price Opinion (BPO). Unlike a typical appraisal, banks are only interested in finding answers to some basic questions on value with these BPOs.
One of these question is the Fair Market Value of a home.
Fair Market Value of the Home is a good indicator of how much the bank would collect if they were forced to sell a home to a buyer after the home has been on the market for certain number of days which defines the Average Marketing Time for similar properties.
However, the banks will never share this BPO value with the homeowners.
So, it’s always smart for Homeowners to find another source of valuation and don’t allow the banks to hold ALL the cards.
There are public website that could provide the Home Owners good estimates based on historical sales such as Trulia, or RedFin. But it’s much smarter to get a valuation developed using a local realtor.
So, turn the table on your banker and get on your Home Value Request before you accept the banks’s Short Sale offer.