I am not an REO listing agent but have sold REO, HUD, etc. In my experience from a buyer's agent standpoint, my buyers will pay more for a home that is already repaired. That may sound like a no brainer. But my point is, when a buyer without remodeling experience looks at REO homes, they will always over estimate in their minds how much it will cost to repair. So their bids are always VERY low.
The REO homes I've sold that have been in relatively good condition, have often times been in multiple bid situations.
So why do you think it is, the banks don't often make value repairs to their inventory? I know some do, but many don't. I still run into many that have never even turned utilities back on.
For those of you working with these listings, do you find the banks really putting thought into the cost estimates they've received for the repairs vs the dollar they think it will bring them in a sale?
From my view point, it seems not only would they probably get their repair money back and then some, but it would increase the home values in the areas of these foreclosed homes (not their worry, I know). I guess I'm reaching for anything to better the market for the regular Joes.
What have you as REO listing agents run into with repairs and the logic behind to do or not to do?
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