November 06, 2018
Why Summer is Primetime for REO Sales
Part of the REO game is making sales as quickly as possible, in order to reduce the amount of lost debt income represented by foreclosed homes. In general, summer is when most people move to purchase homes—particularly families, because school is out and the kids can be uprooted without too onerous effect. Indeed, the data for 2017 shows that 40 percent of the entire year’s home sales happened during the summer months.
When demand is high and inventory low, as was the case during the seller’s market we saw this past summer (even if its highs did not climb to the extent that was predicted by some), an REO asset manager knows to get those properties ready for sale as quickly as possible—and yet realizes it would do no good to allow this need to sideline efforts to render the properties attractive, which can potentially lead to obtaining more and higher offers on them.
The preparation of foreclosed properties for sale—which can at times require some amount of professional work on the part of a contractor—are easiest done during the warmer months (particularly in the North, like in Chatham, Massachusetts or West Greenwitch, Rhode Island—not so much in Southern places like Hypoluxo, Florida, which enjoy work-ready weather throughout the year). Getting properties through market can be contingent on acting early enough in the season to get the ball rolling, so the properties can be made particularly appealing to customers as soon as possible.
The responsible REO asset manager will move quickly to ensure that all of a property’s repairs are made; that the HVAC and sump pump systems are in working order; that the curb appeal (including lawn care, tree/bush pruning, and pool swim-readiness) is on point; that there are no active pest infestations and that potential openings for pests to make their entrance are sealed off; and that the kitchen, in particular, is in good working order and is fully cleaned.
Naturally REO sales go best when a property purchaser can feel secure they are receiving clear title. That’s where we come in. At Topouzis & Associates, P.C., we do everything we can to be absolutely sure our clients are conveying and purchasing title clear of judgments and defects. And, yes, we help our clients put into place a good policy of title insurance to make certain they don’t get surprised by any nasty lurking issues with a property whose title went through foreclosure. Contact us if you’d like us to do this for you.