Have the seller order an FHA appraisal on the property. (as long as you know it will be alot lower then where the current value is) Because that FHA appraisal stays with the property for 4 months and the negotiators should know that. If they don't know that then you will need to tell them that if this buyer walks then they will have an issue with any buyer that has to get financing. They have to come down to at least that value or at least it will give them enough of a justification to order a new BPO.
If the BPO is more than 90 days old then you can get them to order a new one for most servicers. That is another option also.
3rd is if you don't want to spend the money on a full appraisal then contact an appraiser that you know and have him to a desktop appraisal. That is where they don't actually go to the property but do a review of the mls listings and give his value with his appraiser stamp on it. That will usually trump the BPO.
Hope that helps.
If you are totally at your wits end try to get your seller to pay for an FHA appraisal and send that into the bank. They cannot argue with that! Good luck, Sheyenne!
DUH- that is what Brian said...sorry to reiterate Brian's post-he is spot on.
Kevin, we do a combination of what Toby and Joseph do. The listing price should be dropped every two weeks until an offer comes in...shows great history and also a CMA and comps to the BPO agent.
Our fool proof method is having the seller order an appraisal before we even start. This really depends on what the sellers have for cash reserves, but we can convince most sellers to get it done. It's better to spend $400 up front on a solid appraisal then not have the sale go through at all.
When the BPO agent comes through, we just hand off the appraisal. Usually works perfectly.
When we've had situations that the price was unrealistic, we had the buyers lender perform their appraisal. I had a seacoast condo through BOA come in at $400,000. We knew this was unrealistic, so the buyer's lender did their appraisal and we submitted it to BOA. They renegotiated the price after that.
Keep pushing...there are options..