| As liquidity slowly seeps back into the economy and | | | | beyond the tasteful (or not) furnishings that a house is |
| some qualified buyers, perhaps encouraged by the first | | | | just a floor plan with upgrades. And knowing the floor |
| time home buyer tax credit, tentatively stick their toes | | | | plans we instinctively understand how each room can |
| into the proverbial home buying waters, bank owned | | | | hold furnishings and how the home will "flow" when |
| properties have become the jewel de jour. Nightmarish | | | | furnished. |
| stories of endless waits for banks to approve short | | | | So what is one to do when we can see in the buyer's |
| sales have put a dingy taint on the short sale property. | | | | eyes that statistically, (number of rooms, baths, sq ft, |
| Buyers want to know at what price the property is | | | | neighborhood, etc.) the bank owned property is just |
| available not a best guesstimate of a real estate | | | | what they are looking for but somehow it just doesn't |
| agent, comps or no comps. | | | | feel right. And remember, home buying is an emotional |
| So within the slightly less than moribund real estate | | | | event. It has to FEEL RIGHT! But an empty house will |
| market is the percolating bank owned segment. It | | | | never feel right. They buyers are looking for a home. |
| appears to be the opinion of the populace that the | | | | In a perfect world, the seller would hire a specialist to |
| bank owned property represents the rock bottom | | | | "stage" the home so that the kitchen smells like vanilla, |
| price. A short sale still signifies an unrealized loss to the | | | | the bathrooms like bouquets of flowers and the rest |
| bank and why would they accept that when there is a | | | | of the home like fresh linen. But we are far removed |
| full inventory of properties that have already darkened | | | | from the "good ol' days" and there is no way a bank is |
| their balance sheet via the foreclosure process. And, a | | | | going to pay to "stage" a property. That would involve |
| For Sale by Owner or a conventional listing, no matter | | | | renting furniture, etc. and they have already taken a |
| how discounted the seller claims the price to be, it still | | | | bath on the foreclosure. |
| appears to the buyer, correctly or not, that a portion of | | | | So when we see the hesitation cross our client's |
| the price is the seller's equity which they wouldn't have | | | | faces like a storm cloud across the sun we have to |
| to purchase through a bank or other financial institution. | | | | step in and alleviate it. I usually keep a few 8 x 10 color |
| I've recently seen instances where a bank owned | | | | glossy photos (think Officer Obie in Alice's Restaurant) |
| property has sold within a day after being listed. This is | | | | of tastefully decorated rooms from the same floor |
| reminiscent of the "frothiness" that Greenspan spoke | | | | plan available to show them what the rooms would |
| of pre-meltdown. | | | | look like with furniture. Then I quickly insist that they |
| But the challenge is that these bank-owned homes | | | | look at listings that are owner occupied so they can |
| have often been vandalized by angry owners as they | | | | "feel the flow." I let them experience the space with |
| fell across the precipice of foreclosure. At best, a bank | | | | the "good vibrations" of it being a home. This only |
| owned property will be structurally intact but empty, | | | | takes a little more research to be properly prepared. |
| with dingy outlines of removed pictures spotting the | | | | This strategy may take an extra day and burn several |
| walls and the floor showing where appliances or large | | | | additional gallons of that liquid gold we call gasoline, but |
| pieces of furniture had dutifully resided. | | | | when you see the buyers smile between themselves |
| But, as Realtors, we are used to seeing empty houses. | | | | and they decide, Yes, they can see themselves |
| We easily visualize the house's potential, we've seen it | | | | ensconced happily in a this house and it will become |
| realized many times over while showing other homes | | | | their home, and they start to ask about the offer |
| with the same floor plans. Buyers haven't looked at | | | | process, you will realize that it is very much worth the |
| hundreds of furnished homes and understood that | | | | effort. |