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It's Still a Business for them...Staging Can save Lenders

Reblogger Linda Scofield
Home Stager

I read this blog the other day by Tori Toth and feel it is really worthy of a re-blog.

This is a one subject I feel strongly about that would definitely start a change for the good.

Attention Banks, Banker, Lenders, with property inventory. It's time to let go.

Please direct all comments to Tori Toth.

Original content by Tori Toth

As foreclosures and banked-owned homes continue to dominant the real estate market in many parts of the country, neighborhoods sit stagnant as they wait for banks to make a move. With financial institutions still looking to get the most money from homes they now own, price is the only strategy they're using to get these homes occupied.

In order to attract a buyer to a home though, it's more than just price. The home also has to show well and be marketed properly. Banks should look into using these other methods to help sell the vacant properties. Home staging is a minimal investment to getting the home sold when you look at the overall carrying cost on a foreclosure property that estimates well into the tens of thousands of dollars.

Foreclosed Condo on West 19th St. in NYC

Foreclosed properties are usually vacant and in many cases rundown, so what will attract a potential buyer to a home that brought bad luck to its previous owners? Creating a lifestyle through home staging to show off the properties potential, only 10% of buyers can imagine themselves living in a vacant home because they just can't see the big picture. Staged properties create purpose, ideas, and interest to buyers who are then more willing to open their wallets.

When the home shows well through furniture, accessories and highlighted details it becomes much easier to market the home. The property's pictures will have a huge impact in getting potential buyers to the door and the more people who see the home the greater chance of the place selling faster.

When a foreclosed home doesn't sell, it ends up at auction, the worst place for a lender to be because they lose their potential profit. With foreclosures banks tend to lose money, but if they invest a small amount into home staging, the house will sell in a shorter period of time and retain more of its value during the traditional real estate process.

So, think before blowing out the price as the only sales strategy. Invest a little for a bigger return. Foreclosed homes are bad for business. It's not only a burden on the homeowner, but it can mean a huge loss for lender business, neighborhoods and even communities.  

 

 

© Copyright 2010 Stylish Stagers, Inc.  All Rights Reserved

By Tori Toth Owner/Lead Designer, Stylish Stagers, Inc. (NYC Metro, Central NJ, Columbia, SC, Miami and Phoenix) www.stylishstagers.com

Posted by

Ft. Lauderdale and NE Georgia Home Stager RESA-PRO

_____________________________________________

About the Author:  Linda Scofield is a home stager serving real estate agents and homeowners in Coral Springs, Ft. Lauderdale, and South Florida's surrounding areas.
Linda is a proud member of RESA and recently earned her RESA-PRO designation.

 

For those interested in having their home prepared for the market, please contact them at 954 478 1110 or by email her at lscofield@bellsouth.net.

 

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Comments(4)

Tish Lloyd
BlueCoast Realty Corporation - Wilmington, NC
Broker - Wilmington NC and Surrounding Beaches

Linda:  Couldn't agree more.  The banks pay absurd fees to their "Trustees" whose only concern is getting the property foreclosed in order to collect their fees.  They spend what equates to, in my mind, bad money to chase people away; how about some good money to draw people in!

Sep 25, 2010 11:57 PM
Charles Edwards Bentonville
Coldwell Banker Harris McHaney & Faucette 479-253-3796 - Bentonville, AR
AR REALTOR, Bentonville Real Estate Agent and Broker

Linda, Great reblog. Are you taking this cause on?

Now you're talking about a huge leap for lenders. I'm all for it. Let us know how this situation develops

Sep 26, 2010 12:57 AM
Linda Scofield
Toccoa, GA

Tish - Perfectly stated. Why is everyone just allowing this to happen? We all say how bad it is but who is going to stand up and do something about it?

Sep 26, 2010 11:51 AM
Linda Scofield
Toccoa, GA

Charles - I have been taking up this cause for a while now with each lender I come in contact with.

I was so happy when I saw this blog written by Tori and asked her to change it from "members only" so I could re-blog and get the message out there.

Yes it may be a huge leap but until lenders wake up and start doing something, we are all standing still in a holding pattern and our neighborhoods are losing value and some are starting to look like the hood.

It should be a no brianer but...... 

I also think each City should push the lenders..what happened to code enforcement that cited property owners for roofs that need cleaning, trash containers left at the road, grass that was not mowed, and more. Are they citing the lenders that are not tending their foreclosures?

Sep 26, 2010 12:13 PM