Tuesday, January 3, 2012

End of the Year and BPO's

So we are at the start of the New Year. 2012—the apocalypse year. Its funny to me that people believe that the Mayan civilization would be able to predict the end of the world, however the use of the wheel somehow eluded them. I guess we will see though.

I am no longer going to apologize for my lack of blogging. It just gets old, and the few that do read this I’m sure find it half-hearted and patronizing. My new year’s resolution is to blog as much as I can, However, I will post the sold info weekly. That is what I have received the most flack for. My running commentary seems much less compelling then the stats of what has sold here in Sullivan County.

Year end for me was a lot of running around. Showings have slowed, however I have become more and more busy (perhaps I should have just used “busier”?) doing BPO’s—broker price opinions.

 As the real estate market continues to sell in the red, more banks are turning to agents and brokers for “opinions” on price before they decide on a foreclosure or short sale offer. It really is no secret that all they are trying to do is save a few bucks where they can. A licensed real estate appraiser has more often than not undergone more extensive schooling, and is held to a much higher standard under the law when determining value of real property. Therefore their fees are quite a bit higher.

So banks have turned to agents and brokers for an “opinion”. They make it very clear that it is not an appraisal. However they do require three sold and three active comparables. They require all tax information and want a detailed explanation as to why you have come up with your “opinion.” Some even require adjustments for square footage and acreage differences. For all intents and purposes it is an appraisal. But why pay an appraiser four hundred when you can pay an agent one?

Forget the fact that it is on a property that was thirty percent overpriced when it was appraised three years ago and sold via a “no doc.”, variable rate mortgage to a family that had no chance of making the payments. Now let’s try to save a few hundred as we take the 70K hit on the foreclosure. Penny rich and dollar poor.

At any rate I am happy to do them. They are fairly easy, and are a nice steady stream of income over the last few months. It has had me all over the county, and I was even offered a bribe at one particular property. It was actually pretty surprising. I felt like I was on a John Stossel’s “What Would You Do?"

Most of these BPO’s are on the other side of the county, and driving through there, it has reinforced to me how depressed parts of Sullivan County really are. I have taken a bunch of photos and plan on doing a blog post on them at some point when I get a chance. I was going to post a few this week, but pictures of run-down, closed hotels and businesses just didn’t seem like the right first post of the new year.

Happy New Year to All!

There were 25 properties sold in the last thrity days here in Sullivan County.

Click Here for Listings.

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