As REO (bank owned) listings have come to dominate our MLS, I am amazed how these properties deteriorate once they have been acquired by the lender. It is my understanding that after these listings are assigned to an REO broker, the listing agent is supposed to manage the property - make sure it is cleaned, repairs completed and the yard maintained.
This is often not the case. Recently a property I had previously listed was foreclosed and assigned to an REO broker located about a hundred miles away. The former owner had kept the property in great condition. It always showed well and if something needed attention he would fix it immediately, including an occasional leak in the aging roof. So I was taken aback at how that home deteriorated in the weeks and months following foreclosure.
About a month later I showed the property and discovered two leaks had developed in the roof causing sections of the ceiling to collapse in the laundry and master bedroom. Several more weeks passed and on another showing I saw that the damage had not been fixed (but it was duly noted on a maintenance checklist). The yard had also become overgrown and of course the pool was green. Fast forward three months and I am again showing the property. Looks like the leaks were fixed but the damaged ceilings were left laying on the floor with gaping holes above. During this time my $600,000 listing had been reduced several times and was now offered at $280,000. We are going to make an offer but had a local agent been responsible for this listing I can't help but think that the property would have been better maintained and commanded a much higher price.
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