During Short Sales banks use a type of appraisal called Broker Price Opinion (BPO) and they will NOT sure the results of the valuations with the home owner. After all their interest is not to negotiate for you but to get the best deal possible for their investors and shareholders. So, what does a poor home owner to do when the banks assign a High Appraisal Value to your home and refuse to share the report?
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 Short Sale Agent. This agent can in turn can generate a Free eBook that will include the detail of the Home’s important features. The report will report on Market Condition, Recent sales, Median List price and Median Sale price. Finally, the report will document the impact of Foreclosure Activity in addition to Market Rents in the home owner’s zip code.
This eBook will include your home’s features, Sales and Mortgage History, Market Condition, Recent Sales, Median List and Sale Price, Foreclosure Activity even Fair Market Rents, in your Zip Code.
Armed with this report and the Recent Sales, you can indeed challenge the value that has been assigned to your home during your negotiation. Also, pay close attention to the Foreclosure Activity since your lender has to make a judgement about the possibility of your going into foreclosure. Pay close attention to Winning Bids in Foreclosure Report to see if the homes are selling at a Discount to the Openning Bid. This would mean that if your lender takes your home to foreclosure, they will NOT fully recover the Full Loan Amount.