RSS Feed January 07, 2009

Posted by Chris Yonker on May 11, 2008 07:48 pm

Foreclosure Selling Tactics

Once a home reaches pre-foreclosure or foreclosure status it is in the best interest of the lender, and the homeowner to ensure that the property sells quickly, and the balance accrued on the property is promptly taken care of with the profit gained in the sale of the home to the highest bidder. The lending company is given what it is owed, and the remainder to the homeowner. Often, the homeowner gets very little – and thus, reason why a homeowner should not let the home to go into foreclosure.

The key to a successful pre-foreclosure or foreclosure sale is to sell quickly. This will increase the profits made while decreasing the interest and other charges that are being accrued by the lender. Here are some techniques to promote the quick sale of the home:

Home Staging has been referred to as the secret weapon real estate. Research has shown that staged homes are on the market for an average of thirteen days, compared to the average of thirty-one days for homes that have not been staged. During the process of staging the home there are five aspects that should be considered. A diagnostic report should be completed of the home entailing what needs to be changed, renovated, etc. to make the home more attractive to potential buyers. Second, the home should be removed of all clutter, and personal effects. Third, colors in the home should be muted, and neutral. When a buyer walks into the home they should be able to see their life within the walls, not the present residents. Fourth, the home should be clean – and move in ready with new paint, trim and details. Lastly, the home should have curb appeal. A new door, or fresh coat of paint on the door, a manicured lawn and some plants can go a long way in bringing potential buyers into the home.

Staged homes have been shown to sell more than six-percent over the listing price, compared to homes that have not been staged. Staging can cost as little as two-hundred dollars and the profits yielded are well worth the investment.

Pricing is crucial. Once a home reaches foreclosure the lending company is more than likely taking a loss on the property. Asking too high above the balance that is owed on the home, which will go to the homeowner – may deter buyers because it is public record once a home reaches foreclosure. Pricing too little could arouse suspicion in some buyers.

Who is the balance of the mortgage owed to? It is important to consolidate the mortgages with one lender, rather than have two lenders that are owed money because this makes the process more complex.

Prepare the buyers to exit the property and ensure that all paperwork is in order. This way, the new owners are able to move in. A key selling point within the sale is going to be the low price. Entice buyers further with fast closing times, and quick possession dates.

Using these tips should ensure a quick sale – which will not only benefit the seller, but the lender as well.

JOHNATHAN HEUSMAN

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