All Forum Posts by: Mark Brian

Also I would check your E & O insurance to see if it will cover you. I wonder if this is why your broker shut you down, since your BIC is responsible for your actions?

In my state it would be the same EBA agreement, just we would only specify the agreement was for this one property and not a wider range of properties or areas/price ranges. Your state will be different, but the agent should be able to help you.

Find an agent that wants to work for/with you and helps you to succeed by submitting written offers. It will just help your chances of getting your offers accepted IMHO.

Again, your BIC may want to know about your wholesaling. Just as a wholesaler needs to be concerned about their reputation, a BIC needs to be concerned about the agents working under them, what they are doing that is real estate related and if it could have an impact on the BIC's company.

I would suggest speaking with your BIC to get their input first, then check with your state's RE commission to see how they will look at this type of situation.

I agree with Mark Yuschak that a difference of 452SF is significant and should have been noticed during your walk thru.

If it is important enough for you to back out of the contract, some people may say it should have been important enough to verify yourself before making the offer.

I have to agree with Rich. The property owner signed a listing contract that may address this particular situation.

Just a thought, but even though there is a section in my MLS to check Y/N for owner financing, it does not always happen when the agent enters the listing. Sad but true that the listing agent could be losing potential sales because they did not take the 0000.5 seconds it would have took to check Y when entering the listing. I have to agree with P NW about agents not searching craigslist, but agents can sell FSBO if the buyers agent agreement covers this type of transaction.

I agree with Marcus that the agent may have took what you said about owner finance & avoiding banks to be a red flag. If you sent a copy of your proof of funds letter, then it should have changed the agent's perception. Until you have developed a relationship, many agents are going to be skeptical.

Best of luck with your investing!

jawsette the disclaimer states and not for any other purpose, including, but not limited to, obtaining financing.. The disclaimer states pretty clearly what the BPO is intended for & that it is not an appraisal to be used for financing.

I am a firm believer of CYA, disclaimers, disclosure statements etc. In this business, whether you are an agent, investor or both, IMHO you should apply CYA at every opportunity :lol: .

Only an appraiser can legally do an appraisal, a BPO is the bank wanting to do things in the cheapest way. REALTORs do CMAs or BPOs not appraisals unless they are also appraisers. There is a difference between the 3.

Copy and pasted my BPO disclaimer included in every BPO I did:

Even if there is any pre-printed verbiage to the contrary, this broker price opinion (BPO) is not an appraisal of the market value of the property. It is intended only for the benefit of the requesting party for the purpose of assisting the requesting party in deciding the listing, offering, sale, exchange, option, lease, or acquisition price of the real property and not for any other purpose, including, but not limited to, obtaining financing. If an appraisal is desired, the services of a licensed or certified appraiser must be obtained. BPO and Competitive Market Analysis (CMA) are services that SC licensed Brokerages can provide under SC Code 40-57-30.

If the bank or anyone else wants an appraisal, then they can pay an appraiser for one. But like I said I have pretty much quit, not worth the time for what they pay to me.

And arguing with the QA that the property is not worth what they want me to say it is also helped me make the decision to stop doing BPOs. The final straw was a 6000SF lake home on 3 acres. A hard property to comp anyway, but when you also add to the equation that lake sales were dead because we were in the middle of a drought with most docks sitting on the dry lake bed, it just made it worse. But they kept sending it back saying my value was too low. Over 12 months later it is still sitting on the market, $200K above what I told them it would take to sell it. I would love to be able to tell the QA "I told ya so!" If it would have sold at the price the bank wanted, then it would have done so in the previous 24 months it had been on the market.

Some agents do not have the balls to tell people the truth. Just because you want a property to worth more does not make it so. Or as some people have said the agent thinks they can get a listing by suggesting a higher value in the BPO. The agent is just shooting themselves in the foot by doing this. The agent does not realize the BPO mill/bank/AM grades them on suggested list price versus final sales price versus DOM. Or that more often than not more than one BPO will be done.