I have been working with one foreclosure seller for more than two years now and it has been a great experience. While you hear of many horror stories about the process and the problems, I am thankful to say that I haven’t had those issues with this seller. My inventory with this seller is almost all sold so now I am on the lookout for a new relationship with the same characteristics. Here is what I’m looking for in a bank foreclosure client relationship:
Treat Each Property Like A Real Property
Part of the reason foreclosures sell for less money than traditional sales is because they are often treated as junk properties. I am going to take fantastic photos of the property, fill in the MLS information completely and push the listing advertising beyond just the MLS. I will hold open houses at the property, solicit feedback from agents and buyers, and give you a regular update on all activity and feedback on the property.
If you are able to come in to town on occasion, or even better – work in town, I would like to meet with you and visit some of our properties so that you have a solid understanding of what you own. If you can’t make it into town, I’m going to send you enough photos and explanation of the property such that you will still have a good idea.
In return for my efforts, you will occasionally pay for some upfront repairs to bring properties into a fair level of condition. On some properties that won’t be practical and we’ll make an exception, but most of the homes we sell should be fairly clean and presentable. Keep in mind that today’s home buyer often has to put down a bigger down payment than they would prefer and therefore doesn’t have the cash to make all the repairs themselves.
We’re going to have the heat on in the winter at 65 degrees or warmer and we’re going to plow driveways and sidewalks. Winterizing the plumbing though is still a good idea when we have freezing weather, but let’s get a contractor out there that does a good job and doesn’t leave 50 impossible-to-remove stickers all over the house. On high-value properties or homes with awkward spaces we should do a little bit of staging to further improve the feel of the home.
I am going to give you regular updates on market activity and pricing feedback and together we will discuss the best strategy for price reductions when warranted. I am going to make every effort possible to price it right the first time and explain to you how I arrived at my numbers.
Keep It Simple Stupid
Let’s use standard real estate purchase forms that buyer’s agents are familiar with and have easy to understand language for them and their clients. We’re also going to give them all terms and conditions upfront so they know the whole deal before they even make an offer.
If you insist on using your own addendums, they need to be brief and not regurgitate the entire standard purchase agreement. Brevity and clarity will give agents and their clients more comfort.
If it is a condo or a townhouse, we’re going to get the documentation early in the process so we can share it with a prospective buyer at the time of offer – some associations are in tough enough financial shape that they don’t qualify for FHA financing and we want to know that early on.
Communicate!
I promise to always respond to your calls and emails in a timely manner and I need you to do the same. We should be prepared to respond to any offer in 24 hours and be able to get signatures on accepted offers in 48 hours – delays frustrate the buyer and unnecessarily delay closing.
Better Effort = Better Results
I’m going to put in a full effort and so I am going to ask for a full commission – I assure you that you are getting far more service for just a little bit more money. If we follow the principles above, together we will both succeed. We will have quality product, great exposure and a customer experience more like a “traditional” sale – which should lead to speedier offers, more successful closings, and a better return on your investment.
Are You The One?
If you have foreclosures to sell and agree with the philosophy I’ve outlined above, I would love to talk to you:
Aaron Dickinson – Edina Realty – 612-251-5599
