In our last article, we shared with you a story about our adventures in handling foreclosed properties on behalf of the banks.
We thought we'd share what we did about this:
We REO agents are valued for our advice and our expertise. Indeed, our focused and professional REO division was created to meet and exceed the very exacting standards, policies & procedures of Premiere Asset Services, a subsidiary of Wells Fargo.
Although sales price is, of course, important to the banks that have foreclosed properties on their books, an even bigger consideration is time on market. The banks have to pay taxes, insurance, HOA fees, utility bills, and other expenses for the duration of their ownership of these non-performing assets, so they are interested in getting them SOLD and OFF their books ASAP.
With that in mind, an REO agent must come up with a strategy for their local market that will allow a home to sell for as high a price as possible, as quickly as possible. Any repairs and upgrades are NOT intended to increase the value of the property, but to reduce the time on market.
Quite often, you will see REO properties active on the market that look really bad - but it may be that the bank decided it made more sense to go with an "as-is marketing strategy". Let an investor (or maybe an owner-occupied buyer with an FHA 203K rehab loan) buy it "as-is" and do their own repairs the way THEY want it done.
This particular home had a lot of competition from other houses that were nicer, but not necessarily move-in-ready. So, on my advice and at my direction, after the bank cleaned it up, we threw down fresh paint and new carpet. Nothing fancy or expensive, but nice - just enough "sizzle" to put it "1 notch" above anything else comparable. And yes, it generated multiple offers and sold for well above list price.
What A Difference Fresh Paint & New Carpet can Make!
Lookin' GOOD! Nice rich colors - yet neutral. You won't see any of MY REO listings look like they got hit with a white paint hurricane!
Those BIG windows and 2-story ceiling really kept it bright and airy.
Happy Seller. Happy Buyer. Happy agents. Nothing quite like the satisfaction of a job well done.