Great BPO Question

Question on BPO’s.

I am working with a woman in foreclosure. She has not listed har house, and the bank has requested that I submit the BPO. I have enlisted an agent to get me a BPO for $25. I explained to her that I would appreciate if she took into account the repairs that I felt needed to be done. She allowed me to fax her over my repair list and I am going to show her some of my comps as well.

The homeowner has put a FSBO sign out front, but Im not sure if this will be enough for the bank. My question is will the bank force me to get an agent to list the home? If this is the case, what do the more experienced shortsalers do to avoid losing all of their profit on commision going to the agent.

Thanks for your input.

Gregg Tucson

Dang it… I hate answering this question.

I know that most lenders will accept a 77% offer off the top… 5% to the agent… so you earn 18% for doing the work…

Our jop as investors is to find the deals where you can make offers at 60 percent and still pay the agent 5%…

If you need help let me know… The key is information… And knowing what to do with it.

Michael Quarles

Thanks Michael. I think I am going to submit the package without a listing agreement and just explain to the bank why the seller chose to FSBO. I am a bit weery of working with agents, as my ss deals in the past have been without them.

I also was curious about the specifics on how the agents get paid. They get paid once you purchase the property, right, not on the sale? And this money does not come out of my pocket correct?

Has anybody had success with ss without submitting a listing agreement?