Lessons Learned

For those of you out there doing short sales, here's a very important lesson (one which I was unfortunately reminded of today). This may be a bit beyond the scope of some beginners, but it's a good learning point anyway.


When you're working a short sale, MAKE SURE YOU ARE THE POINT OF CONTACT FOR THE BANK'S BPO AGENT (and be sure the homeowner understands this)! Here's what happened. I've been working on a particular short sale for about 1 month. I had submitted all necessary paperwork to the bank and was waiting to get the BPO (Broker's Price Opinion, basically an appraisal for the bank) set up. Well, over a week went past and I hadn't heard from the bank, so I called them up today. I was surprised to learn that they said they had tried contacting me several times (even though they never left a message), so they contacted the homeowner, who agreed to give them access to the property.


Now why is this important? Primarily because when you're working a short sale, you want to be present yourself to hopefully influence the BPO. You do this by pointing out items that need repair and providing the appraiser with area comps (preferably low ones that support the offer you're making to the bank). The lower that BPO appraisal comes back at, the easier your job will be in negotiating an attractive price.


I have not yet been able to find out if the BPO has been completed - couldn't reach the homeowner, and the bank won't have any info. on it until a week after they get the report (good old bank bureaucracy) - so I don't know how severe my mistake was. But, here's the lesson. Even though I made myself the point of contact with the bank, I should have done a better job explaining to the homeowner that I need to handle all communication with the bank about the short sale. I'm just hoping the BPO hasn't been done yet.