Every since I can remember it has been debated as to whether or not it is beneficial or detrimental..... to say that a property is a foreclosure in advertising that property.  Of course it is the client's choice on the matter and personally I have always respected that choice, and followed the client's instructions,  as one certainly should.

But nevertheless the debate goes on. My personal feeling is that is doesn't hurt and it may even help to say something in the ads. The prospective buyer is going to find out eventually one way or the other. Sometimes sellers are worried that a buyer prospect will offer less if it is a foreclosure. My personal feeling is that  a buyer is going to offer whatever he or she wants to offer, no matter what is  beingmadvertised, particularly on the first go round of the negotiation process. I believe the mere fact that the word "foreclosure" appears in an ad is not going to cause a buyer to run away either.  I feel that the opposite is true and that by saying a duck is a duck more folks will call because it is

. In  this day and age a seller of a foreclosure should seriously think hard about putting too many limoitations his representative. It is difficult enough selling a quality home that is ready to occupy immediately, much less a foreclosure that more often than not  needs substantial renovations.

If you sell foreclosures, do you recomend to sellers to advertise "FORECLOSURE" ?

 
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7 Comments on Is It Good Business To Advertise The Word Foreclosure?

NOV
06
149,765 Points Hit Router

I use bank owned i stead of foreclsoure

10:26pm • #1
217,021 Points 4 Featured Posts Outside Blog

There are some sellers (the VA for one) that prohibit me from advertising it's a foreclosure.  But since buyers can't purchase a foreclosure without signing a CYA addendum and sometimes a hold harmless letter I feel the honest thing to do is tell them upfront.  My policy has always been to advertise honestly.  They (buyers) certainly know by the time they are making an offer and being told they must have proof of funds and commitment letters before a bank will look at their offer.  For me, it just seems the right, honest thing to do.

10:27pm • #2
1 Featured Post Outside Blog Hit Router

I used bank-owned.  I think people do gravitate towards a foreclosure or bank-owned home.  Buyers are like Pavlov's dogs...they hear foreclosure, repo or bank-owned and they automatically think "bargain."  Buyers are searching these bargains out.  I've actually joked about putting the words "sold as is, where is" on every one of my listings that aren't foreclosures...people will automatically think it's a repo or foreclosure and gravitate towards it.  LOL

10:28pm • #3
103,778 Points 1 Featured Post

Foreclosure has a ring with consumers. They expect to get a bargain because of the misfortune of others. If someones looses, they think someone has to win. Basic human nature.

10:35pm • #4
326,626 Points Localism Sponsor Outside Blog Hit Router

Joe

That is a great alternative phrase of course!

Tammy

I had forgotten about the government restriction.

10:45pm • #5
NOV
07
1 Featured Post Outside Blog

Trey, Our MLS mandates we check the foreclosure and short sale boxes.  No guess work there! :-)

6:19am • #6
375,408 Points 34 Featured Posts Outside Blog

Hi Trey... I get so many buyers who contact me only wanting to look at foreclosures (even though I always explain that a foreclosure may not be their best buy) that I think failing to make that fact known might limit the buyers who may be interested.

12:43pm • #7

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Trey Thurmond, College Station , Texas Homes

College Station, TX

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Classic Realty Associates

Address: 3600 Hwy 6 South Suite 100, College Station, Tx, 77845

Office Phone: (979) 694-8844 x 110

Cell Phone: (979) 229-8465

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