OfflineI've noticed that banks are using a Brokers estimated values for homes. What is this? Why is it different then Zillow or Realquest? Can you use you own appraiser for an actual number to submit to a bank or is that a waste of time? Why do banks do it this way? Is it to save them money on getting actual appraisals which cost money and using their own broker saves them money in long run? Curious Beth at it again!! I start to ask one question and it turns into 15! Im so sorry! I cant keep up with myself here!!!
Beth-A-Roni Your San Francisco Treat
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Generally speaking, every bank will require their own appraiser to value a property in order for the bank to get the most for the property. If you had your own appraiser value a foreclosure, they could easily price it at what YOU want and not the bank.
Websites like Zillow.com and Realquest.com mainly go off county records and are NEVER a good source for appraisals.
I was talking with one of the coaches in the office and he was working a short sale. He had it appraised and it appraised for $115,000 and his comparables on the property came to $117,000. So he made his offer off of this. The bank however wanted $150,000 for the home. He, while on the phone with the loss mitigator, decided to look up Zillow and found that Zillow had set the value of the property at ... you guessed it $150,000. Had he worked off this number he would have lost money instantly.
Be very careful when using appraisals online.
Beth-A-Roni Your San Francisco Treat
I think you are refering to a BPO (broker price opinion). Banks will get an appraisal or a BPO on a property before responding to an offer. A BPO (property value prepared by a RE Agent) is about 1/3 the cost of an appraisal.
"NOW GO FIND A DEAL"
Yeah Beth, You've got the idea, Banks use BPO's cause YES it does save them money, LOTS of money. BPO(brokers price opinion) is basically a generalized opinion or value of a property conducted by a Realtor. Theirs 2 types of BPO's, INTERIOR and EXTERIOR types and they're broken down exactly how it sounds. An INTERIOR type is a BPO that is done by the BPO Agent and he/she actually goes inside of the property/EXTERIOR types are done by NOT going inside the property. When a BPO is ordered by the Lender it is then sent to a 3rd party company such as BPO DIRECT, FIRST AMERICA, LANDSAFE, etc. These companys have a list of Realtors for each state. The BPO number is different than the number that you'll see from Zillow & Realquest, because like the coach said, "these web sites base their values off of county records". Hope this gave you a bigger insight, SULLY
YOUR HERO, SULLY
Sully and Coaches:
Would you be able to rely on the benchmarks set by sites such as Zillow and Realquest against the bank's figures for accurate appraisals of properties of interest?
I'm a bit confused how these figures would comprise the high/ low FMV of a property.
How do the interior/ exterior BPO figures accurately comprise a home's FMV?
Thank y'all, in advance, for your clarification.
Sonicreindeer