I short sold my bay area home in 2009 and have been sitting on the sidelines renting. A couple of short sales have caught my eye. I wanted to hear some thoughts on the following:
1) How accurate are free online AVMs, ie realquest, BoA, redfin in terms of providing something resembling fair market value, as compared to a CMA or appraisal. A CMA is only as good as the realtor who does it, however the BPO requested by the Bank will be performed by a realtor, so it would be nice to anticipate their BPO before submitting an offer.
2)Do the banks also consider the rent/purchase price relationship, and if so, what is the best formula for estimating this, I.e. 15 times annual rent etc. I am trying to look at it like the investor who is going to OK the short sale, and whether they think it would do better on the auction block selling to an investor who will buy it and rent it. Assume the place is in move in condition.
3) Does the bank consider days on market and price reductions prior to the first offer? It seems like this would be the best assessment of fair market value over anything else, assuming the listing agent is presenting all offers to the bank. I realize that assumption might be a leap of faith for the banks however.
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I short sold my bay area home in 2009 and have been sitting on the sidelines renting. A couple of short sales have caught my eye. I wanted to hear some thoughts on the following:
1) How accurate are free online AVMs, ie realquest, BoA, redfin in terms of providing something resembling fair market value, as compared to a CMA or appraisal. A CMA is only as good as the realtor who does it, however the BPO requested by the Bank will be performed by a realtor, so it would be nice to anticipate their BPO before submitting an offer.
2)Do the banks also consider the rent/purchase price relationship, and if so, what is the best formula for estimating this, I.e. 15 times annual rent etc. I am trying to look at it like the investor who is going to OK the short sale, and whether they think it would do better on the auction block selling to an investor who will buy it and rent it. Assume the place is in move in condition.
3) Does the bank consider days on market and price reductions prior to the first offer? It seems like this would be the best assessment of fair market value over anything else, assuming the listing agent is presenting all offers to the bank. I realize that assumption might be a leap of faith for the banks however.
Thanks
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