Commercial REO Evaluations
Posted on October 25, 2010 by paulmartis | Edit
Some of you may have completed an As-is Asset Memorandum for a Bank.
This is an important step in providing the bank with your professional insights into the marketability of a property for a long term 1-2 years or a quick sale of 6-9 months and this Memo is sometimes referred to as a BOV (Broker Opinion of Value), is pre-REO and maybe difficult if there are not recent closed comps available for your property type.
Broaden your search and use all the analytic tools available to you including other Brokers who may have active listing and recent sales in area of the subject property.
During the BOV writeup , I recommend a discussion with the local village planner, economic director as well as the local assessor to determine future use or interest in the area of the property and to determine the presence of any liens, unpaid taxes or other known issues.
For those agents who have the experience of creating CMA’s (Comparative Market Analysis) for commercial properties, the property analysis is just one step in completing a formal BPO (Broker Priced Opinion) for an REO property. . Once you have the right to list a property, the selling Bank will require you to use their specific Excel spreadsheets to track all offers and make recommendations regarding acceptance.
Do your homework and don’t overlook the obvious.
Paul Martis-Broker
Coldwell Banker Commercial NRT
Oak Brook, IL.
This is an important step in providing the bank with your professional insights into the marketability of a property for a long term 1-2 years or a quick sale of 6-9 months and this Memo is sometimes referred to as a BOV (Broker Opinion of Value), is pre-REO and maybe difficult if there are not recent closed comps available for your property type.
Broaden your search and use all the analytic tools available to you including other Brokers who may have active listing and recent sales in area of the subject property.
During the BOV writeup , I recommend a discussion with the local village planner, economic director as well as the local assessor to determine future use or interest in the area of the property and to determine the presence of any liens, unpaid taxes or other known issues.
For those agents who have the experience of creating CMA’s (Comparative Market Analysis) for commercial properties, the property analysis is just one step in completing a formal BPO (Broker Priced Opinion) for an REO property. . Once you have the right to list a property, the selling Bank will require you to use their specific Excel spreadsheets to track all offers and make recommendations regarding acceptance.
Do your homework and don’t overlook the obvious.
Paul Martis-Broker
Coldwell Banker Commercial NRT
Oak Brook, IL.
