BPO Troubles With Banks Will Carry On
Kevin and Fred, the leaders of Group 46:10, Arizona’s chief small sale team, are discussion today about pricing and listing. Before you shut the video off since you by now recognize how to list and price, hear them out. Depending on your market, you may not be experiencing the similar stuff as Kevin and Fred are in Queen creek. As many of you know, the deadline for taking advantage of the tax credit has passed. What we are seeing right now in the market is a small bit less enthusiasm from house buyers and house owners. The supply is starting to swell and that usually leads to prices going down. When you observe that trend, you tend to have more disagreements with banks as regards the value of properties.
There are a lot of of the same obstacles in 2010 that we had in 2008. Lenders like to look at sold comparisons. Though, if you want to deal with the fluctuation in the market you need to compare values with active and pending listings. Price yourself in advance of the market if you want to sell the house.
At bestow, the BPO’s are coming back higher than what they ought to be in Kevin and Fred’s opinions. There have been conversations with Chase bank where they have raised the BPO value because they oppose with the BPO agent’s value.
It is imperative to appreciate that there will be more BPO problems in 2010. Other pieces of the country may not go through these troubles if your market has only depreciated 10-15%. Still, in the Arizona real estate market, with depreciation levels approaching 60-70% in some instances, there will be BPO issues.
The bank will doubtless make some mistakes and shut out on some properties. Don’t be surprised if it takes them a while to fix their own practices through this change in the market.
Get powered up by Kevin and Fred at Small Sale Power Hour by the Small Sale Specialists of Arizona