I have done a lot of BPOs in Brevard County Florida. [A BPO is a broker price opinion – an opinion of value on real estate done for a lender who is either evaluating an offer of some type (short sale or foreclosure) or making another decision regarding a loan.]
Most of the time the lenders will specify whether they desire a “distressed sale” value or a “fair market" value.
Recently I had a BPO rejected because my comparable properties were all either bank owned properties in Rockledge or short sales in Rockledge, Florida. Many of the "for sale" properties that are not short sales are…get this – overpriced!
The fair market value if a seller wants to sell their house or condo is going to be close to the short sale and REO prices!
Reality..is what it is....
Of the 5,200 single family homes on the market in Brevard County, Florida, almost 1,300 are short sales or foreclosures!