Mark (this is the mortgage broker),
It is my position that the BPO should not be seen as relevant. Guy was not local, was unfamiliar w the area, has very little experience pricing and selling homes as a whole and all the homes he did work on were lower priced short sales. He also admitted to me he could not find enough relevant comps and the report itself contained major errors which either indicate lack of knowledge or extreme carelessness. I am unclear on which one or both as some of the errors do not make logical sense (it is not logical to think having more than twice the lot size is worth $480 more or that square footage can be adjusted at $10 a square foot ). This guy got so lost on the way to the home.. I had to drive to meet him 'where he was' and lead him to the house
Major errors exist in his report such as
1. comps from different zipcodes, totally different neighborhoods, different school districts. "comps" were not relevant
2. undervaluing lot size (adding $480 for a 1/4 acre lot size difference, for example)
3. mis-stating relevant facts on my home as well as other homes
missing fenced yards, finished basements, updated items, major improvements
mis-stating lot size for my home and other homes
listing a 'crawl' as a full finished basement
average rent on the home is $3200, not $1200
4. adding square footage adjustments at the value of $10 a square foot
5. some comps were frame (vs brick) with no price adjustment
6. failing to account for updated status of my home as compared to other homes
My home has new kitchen, baths, tile, expert finished basement. Many comps had brown VERY old vinyl, old cabinets, kitchen (evidnet in pictures easily available online)
7. using 'distressed sales' as comps including one auction sale and short sale properties
As you are aware I have asked one of the top realtors in town to come over today at 12:30 to give me a fair value of the home. I expect that value to be around $470-490k but will wait for his report. I will ask him to substantiate the value with comps and whatever else is necessary to send to the lender to revise their value.
I still do need to close by 1/31
Thanks for your help. It is really appreciated
Rachael
Email sent to my broker this am (waiting on realtor to drop by)
January 24th, 2014 at 07:16 pm
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Totally hate to ask if this professional was from p - a - v realtors (previously located in Cicero, but I've seen signs in Westmont). We had a difficult time with him about ten years ago coming up with a realistic valuation on an 8-flat that was inherited by nine owners. He lowballed because he wanted to buy it.
Anyhow, a quick look at Zillow yields a lot of information that would substantiate your point. Hobson is lovely, one of my daughters horseback rode in a subdivision off of it. Good luck.
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