Why BPOs Can Make or Break Your Short Sale Approval
If there’s one part of the short sale process that has the power to move your deal forward—or sink it entirely—it’s the lender’s valuation.
Whether it’s a Broker Price Opinion (BPO) or a full appraisal, this step determines how the bank views the home’s worth, and more importantly, what they’re willing to accept to release the lien. And while many homeowners and agents assume this part is out of their control, that couldn’t be further from the truth.
Why the Valuation Matters So Much
The bank’s entire decision to approve or reject your short sale hinges on one thing: net proceeds. And how do they calculate what’s acceptable? By comparing your offer to what their assigned agent or appraiser says the property is worth.
If that valuation comes in close to your offer, your deal has a solid shot. If the value comes in too high, expect a rejection—or worse, a counter that scares off your buyer.
So what can you do? A lot more than you might think.BPOs vs. Appraisals: What’s the Difference?
Short sales typically involve one of two valuation methods:
• BPO (Broker Price Opinion): Completed by a local real estate agent chosen by the lender.
• Appraisal: Ordered by the lender and conducted by a licensed appraiser.
The good news? BPOs are easier to challenge if the number comes in too high. If you believe the valuation is off, you can submit comps, condition reports, and market data—and the bank may accept a revised opinion or order a second BPO.
Appraisals, on the other hand, are harder to dispute. Most lenders simply go back to the original appraiser to confirm their comps. Even if you spot glaring issues, you’re unlikely to see a significant change.
That’s why it’s so important to set the stage before the valuation even happens.
The Listing Agent’s Hidden Power
You might not realize it, but the listing agent has a huge role in influencing the lender’s valuation. Here’s how to do it right:
1. Price the Home at Current Market Value
This is not the time to anchor to the original mortgage balance. Banks don’t care what’s owed— they care what the home is worth today. Listing at market value signals to the BPO agent (and the bank) that you’ve done your homework.
2. Get the Strongest Offer You Can
A solid, well-qualified offer close to list price strengthens your case and sets the bar for what the bank might accept. It also adds legitimacy to your valuation argument.
3. Support the Valuation with Evidence
Before the BPO or appraisal visit, provide the evaluator with:
• Recent comparable sales (especially distressed or as-is comps)
• A brief condition report noting repairs or damage
• Market trends (DOM, price reductions, etc.)
• Your logic for the listing price
Make it easy for them to include your narrative in the final report. In most cases, what you show them ends up on the bank’s desk—literally.
How We Help Smooth the Process
At Crisp Short Sales, we coach agents through this exact process on every file. We help identify the right list price, prepare supporting documentation, and even advise on how to talk to the BPO agent during the walk-through.
If the valuation still comes in too high, we know how to build a dispute that actually gets traction. Our goal is simple: get you to the closing table faster—without the headaches or delays.
If you want more short sale approval tips or need a second opinion on your short sale BPO, we’re here to help.
Want help on your next short sale? Reach out and let’s review the file together. We’ll make sure the valuation doesn’t stand in your way.
FAQs
What happens if the BPO value is too high?
The lender will likely reject the current offer or counter too high for the buyer. You may need to dispute the value with better comps or request a second BPO.
Can a short sale be approved if the offer is below the valuation?
Sometimes, yes—especially if other factors like condition or buyer strength come into play. But your chances are far better if the offer is close to or matches the valuation.
How do I challenge an incorrect appraisal or BPO?
Submit a dispute with supporting documentation: updated comps, contractor estimates, photos of needed repairs, and market analysis. BPO disputes are more likely to succeed than appraisals.