Strategies to dispute BPO valuation

[Caitlin Worrell]

Given the trajectory of property values in my market, I submitted a request for a BPO in an to attempt to shed PMI on my duplex. The LTV returned as 74.5% ($600,000) when 70.0% was required ($640,000). Prior to the BPO, it was challenging to estimate valuation due to limited and high variable comps/ Though we thought the potential benefits outweighed the cost of the BPO. The property is located in an established and high value neighborhood amongst mostly single family homes. Many similar properties are converted into SFH or torn down for new builds ($1.5 - $1.8 M), making it increasingly challenging to find comps of equal condition and in close proximity.

However upon reviewing the BPO report, I noticed some discrepancies that would impact the valuation. 

Subject as described in BPO:

Unit #1: 2 bd, 1 ba

Unit #2: 1 bd, 1 ba

Gross living area: 1875

Actual Subject:

Unit #1: 2 bd, 2 ba

Unit #2: 2 bd, 1 ba

Gross living area: 2548

Besides pointing out the obvious errors in the report (missing a bedroom, a bathroom, and >500 sqft), can anyone offer any guidance on successfully disputing the BPO valuation? 

[Kyle Mccaw]

BPO's are cheap and are know for low/questionable quality. Ask the bank if they will accept a real appraisal completed by a licensed professional inspector.