How To Skip The Appraisal In A Short Sale

What if you could get rid of the hassle with banks, appraisers and REALTORS®?  Can you skip some steps in a short sale and still get it done?

In some cases, you can! For example, if you are behind on your payments and you work with us on a short sale of your property, the traditional appraisal is replaced with a neutral, bank-ordered “BPO” (Broker’s Price Opinion).

In real life terms, that means “One less thing!”

First, a little background.

In any real estate transaction, the property appraisal is the balance that helps the buyer and seller agree on a price.

In a short sale however, the buyer and seller are not the only ones determining the price; the bank must also agree. This makes the appraisal even more important — and sometimes trickier — for establishing the right price in a short sale when your mortgage is underwater.

If you are working with a REALTOR® or trying to do a short sale on your own, the appraisal on your property is one of the key ingredients that you’ll need when convincing your bank to work with you on a short sale.

Although banks are beginning to get their acts together and move more quickly when a short sale offer is made on a house, they are still notoriously slow.  When all the initial paperwork is delivered efficiently, and extra requested information is delivered quickly to the bank’s short sale specialist, the process time can be minimized.

Financial departments swamped with short sale requests tend to be seemingly unorganized and unresponsive to questions regarding each case. Dealing with a short sale, even while working with a REALTOR® that is supposedly a “short sale expert,” can mean months of exasperation and stress.

The appraisal is just another factor that can throw a wrench into the deal. Not only does the appraisal need to satisfy all three parties (the buyer, the seller, and the bank), but even experienced appraisers are challenged by the short sale appraisal.

Appraisers must establish a value in spite of the confusion over comparable short sales vs. comparable properties sold conventionally. There are often matters involving repairs and the condition of the house that make finding “comparable” properties more challenging. Furthermore, banks often send out-of-town appraisers who are unfamiliar with local markets and neighborhoods.

These factors can spell trouble for a smooth transaction. And any bump in the road can stall a deal for weeks.  Done conventionally, the short sale is not an easy process!

Working with Markette Properties, the homeowner experiences something quite a bit different.

Because we’re a “one stop shop” for people who must sell a San Antonio home super fast, we have a team that works together with the bank, so you don’t have to.

One short sale detail you can skip altogether: that appraisal.

See, our process is refreshingly different. Here’s how it works at Markette Properties:

The lender requires that the house is listed on the MLS. An independent REALTOR® will contact the sellers, establish a listing agreement with them, and list their house.

As the home buyer, I put together an offer to buy the house, based on market value and repairs needed. The seller’s REALTOR® sends the seller’s financial package, along with our offer, to the bank.

Upon receiving the complete short sale package, the bank will then order a BPO (broker’s price opinion) to determine the market value of the house. (The BPO is why we can forego the appraisal altogether.)

A broker will visit the property, and makes an assessment. This trained and certified broker considers several factors when pricing the property:

  • the value of similar surrounding properties
  • sales trends near your house
  • an estimate of costs needed to repair the property or get it ready to sell

The BPO is not the same as an appraisal. The seller never needs to order their own appraisal, and as a buyer I don’t order one either.
Once the bank has the BPO, they will usually counter my original offer. We will continue to prove our numbers, and work towards buying the house from the bank.

Once the bank accepts our offer, we can move closer to closing!

Imagine how easy this is on the homeowner, who is already strapped for time, patience and money!  We service your needs with the careful attention of a unified team. As a result, the short sale process is streamlined for you.

Why not call us and find out what we can do for you!

We can buy your house fast in Texas! Markette Properties presents an unique, simple approach for selling your home! We are real estate investors. We buy houses in Texas just like yours! We are dedicated to the highest professional real estate standards for all of our clients.

Do you want to sell your house fast in Texas for top dollar with the least hassle? Give us a call! (210) 853-2788 or click the button below.

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Photo Credit Flickr CC: WestechAppraisalServices

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