Have you decided to short sale your home? Are you negotiating with the bank?
If you answered yes, is that you will need to know the Fair Market Value of your home before you start negotiating with the bank.
The problem is that banks will order a Broker Price Opinion (BPO) to determine your home’s value. However, the bank will not be sharing this value with you since they don’t want to tip their hand.
Your home’s Fair Market Value could then become source disputes since bank often send out-of-area real estate agent to perform the BPO. And these agents often over-price these home since they are not aware of the local market conditions.
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, if you are interested in getting a fair deal in your negotiations with the bank, ask your local Real Estate agent to develop a Competitive Market Analysis (CMA) for your property. You also need to make sure this CMA is adjusted for size, age, condition of your property to accurately reflect your home’s Fair Market Value.