| Many homebuyers and sellers look to save money but | | | | they produce a price for the bank. This price is what |
| never think of using an exterior broker price opinion to | | | | they believe the bank should sell the property for and |
| reach a fair market deal for the home. But recently, | | | | what the bank could reasonably receive in its current |
| exterior broker price opinions have been used | | | | condition. |
| extensively, especially for REO properties that are | | | | Why would banks want to use this method when it's |
| abundant and not moving as quickly. | | | | not based upon a true well-thought out cost analysis? |
| The list has overwhelmingly grown for bank owned | | | | This is because it's much cheaper for banks to pay up |
| properties, more commonly known as real estate | | | | to $50 per home instead of paying for a certified |
| owned, or REO properties. These foreclosures have | | | | appraisal which could cost about $200 per home. |
| multiplied way beyond what the banks were prepared | | | | Banks have already lost money on non-payment of |
| for and now banks are looking to off load the homes | | | | mortgages and the entire foreclosure process so now |
| while keeping expenses down. So they've turned to | | | | it comes down to getting these reo properties off of |
| using an exterior broker price opinion to develop a fair | | | | their books. |
| market value to price these homes. | | | | However, can the home buyer count on the exterior |
| What is an exterior broker price opinion? It's an opinion | | | | broker price opinion as a fair opinion? Not always. |
| conducted by a licensed real estate agent or broker of | | | | Take into consideration that the banks want to recoup |
| the home's value. It's by no means all-encompassing; | | | | as much money as possible. An exterior broker price |
| for the purpose of selling these REO foreclosed | | | | opinion doesn't really get a full picture of the foreclosed |
| homes it only provides a snap-shot view of what the | | | | home's worth. No structural considerations have been |
| home *may* be worth. It doesn't take into | | | | introduced when you rely on the exterior broker price |
| consideration the intricacies of interior effects. The | | | | opinion. This is why many investors who purchase a |
| licensed Realtor or broker performs a drive-by and | | | | REO property submit a new offer and try to |
| using their professional experience and knowledge | | | | renegotiate the selling price. |