You are here : Home \\ Blog \\ Livermore Short Sale- Short Sale Valuation (BPO) vs. Buyer Appraisal Valuation

Livermore Short Sale- Short Sale Valuation (BPO) vs. Buyer Appraisal Valuation

by Scott Fuller on November 6, 2012
Written by:

Hi, everybody, Scott Fuller with East Bay Short Sale Group. We are your Livermore, California, short sale specialists. A question I get pretty often is, “What happens if I am doing a short sale and I am the seller, and my bank values a property at a different value than what the buyer’s lender’s appraisal values the property at. What happens in that case?”

So let me give you an example. Let’s say, I’m selling a house in Livermore. The house price is $400,000 and we get a contract offer of $400,000. Let’s say if my bank comes back and says, “OK, the property is worth $420,000”, and we get the buyer to sign an addendum to the price, raising it up to $420,000. At that point, we’re all set and ready to go, but the buyer’s lender still has to do an appraisal to make sure that it appraises for $420,000. Let’s say, if that buyer’s appraisal comes in at $400,000, we’re now $20,000 short. In every case that we’ve dealt with, we’ve been able to send a copy of the appraisal over to the seller’s lender, get them to review it, and get the investor to sign off at the lower $400,000 price, because in most cases, some buyers may say, “OK. Just to close the deal, we’ll come out of pocket an additional $20,000”, but most buyers aren’t going to do that. They’re just going to put in what they feel is fair market value, which has been determined by their appraiser and their lender.

So, in most cases, we go back, we negotiate with the short sale lender, let them know that, “Hey, you came back at $400,000. If this buyer back out, we have to do it again. Chances are, it’s going to come in at $400,000 again”, so the lender usually will go ahead and reduce it down to $400,000. Even though there can be discrepancies on value from the short sale lender’s side versus the buyer’s lender’s side, we usually get that negotiated, and it usually becomes a non-issue.

If you have any questions about your property, on how short sales work, on how we can help you, please let us know. Again, we’re your Livermore, California, short sale specialists. We also service all other cities in Alameda and Contra Costa County. You can reach us at


Previous post:

Next post: