Bank reposssion of homes are not restricited to the low-end homes. REOs happen on luxruy homes as well. In 2011 we were excited when we were assigned a Bank Owned (REO) property. This home was located in Los Gatos and qualified as an ideal Los Gatos Fixer Upper since the property was damaged by the previous owner who had removed:
- Carpet from Bedrooms
- Bathroom Fixtures
- AC Compressor
- Light Fixtures
- Door Chime
- Kitchen Cabinet Doors
- Kitchen Appliances
- Interior Doors
This banks 1st difficult position was to determine if they wanted to sell the property in it’s current condition or AS-IS Sale which would not have netted more than $800,000 based on our Broker Price Opinion (BPO). AS_IS sales is where the seller does not make any guarantee to the condition of the property and the buyer assume all the risk of purchasing the home at it’s current state and condition. We then developed a BPO for AS-Repair Sale where we needed to determine the After Repair Value of the home. This excercise proved that we would be able to sell the home for $1.2M and above if we spend the $70,000 to repair the home.
We also provided the following conditions to help the Asset Manager make their decision on Staging the home prior to sale:
1) Was this Log Gatos Fixer Upper in competition with mostly new or remodeled homes?
2) Did this Los Gatos Fixer Upper offer more than 2,500 sqft of living space?
3) Would the rooms be empty after the remodeling ?
4) Could the bank afford the $1,000-3,000 per month on Staging costs?
5) Does this Los Gatos Fixer Upper have any curb appeal?
6) What will the 1st impression of the New buyers will be when they drive by?
The decision then was made by the Asset Manager to Stage this home prior to sale. And as you can see from the slide show above, Staging adds tons of charm and character to an otherwise boring layout of the floor plan. And ironically, this turned out to be one of the only sane bank decisions we have seen in the past decade when it comes to marketing REOs.
Has staging help you with your marketing? Contact us if you need help marketing your home.