There is a lot to consider related to the BPO (Broker Price Opinion) and how it can slow your deal, get your deal approved or send you crying to your mother because it ruins it. One of the most confusing parts of the BPO dance is how your offer price and the BPO compare to each other.
What value of the BPO can my offer be to still get an approval from the lender? This depends on a lot of factors but in general if your offer is at least 90% of the BPO value it should get approved without problems.
Did I read that right because I had deals at that value range that were denied? Remember one very important thing about negotiating, okay two. First know who you are negotiating with and what their real ability is to approve your deal. But most important is to remember when negotiating ‘NO’ just means you didn’t ask for what you wanted the right way or to the right person.
So how do I change that ‘NO’ to a ‘Hell Yes’? Escalate your offer to a higher power. Do it professionally, politely and detail your numbers. What is often most important is 1) What is the value of the home (BPO $), 2) What is the Offer Price, 3) What is the amount owed on the loan to the bank and 4) What are they getting from this offer?
How do should I escalate my offer? Check back soon for my post on Escalating your Short Sale offer. Once it is here you’ll see ‘Escalation’ in the Topic Search at the top-left of the page.