Foreclosure Home Staging

The foreclosures that are flooding many regions of our country are of great concern to many in the real estate and financial industries, and of course, to homeowners that live in these areas. As more of these vacant homes are put on the market for sale, the only consideration seems to be Price as a strategy for getting these properties sold.

The fact is, a Foreclosure property needs to be treated lke any other house for sale. The difference, of course, is that instead of an individual homeowner selling the house, the bank or financial institution is selling the house. However, Buyers are the same. Even when Investors are purchasing the house, it should be presented in a way that helps it stand out from the other houses on the market.

Enter Home Staging. Home Staging is the only tool that has been proven to help a house sell in a shorter period of time which helps the seller (bank or individual) retain more of the house's value. Just because the bank is losing money on a foreclosure property, they can still invest in a reasonable amount of Home Staging to present the property for prospective buyers.

When the carrying costs on a foreclosure property are in the tens of thousands of dollars, Staging is a minimal investment that will help get the house sold. Price is not the only strategy that helps sell a house. Buyers respond to a Staged home because it feels better than the other empty houses and is easier to imagine living in - and the buyer is then more likely to purchase the one that shows well in photos and in person that the one that has not had any preparation or marketing done to attract a buyer.

When a foreclosure property does not sell, it eventually ends up in auction - where the bank loses an incredible amount of money and potential profit versus selling it with a traditional real estate process.

I would love to see bank managers, asset managers, other real estate owned managers of these financial institutions take an honest look at how their properties are NOT being marketed for buyers and make a small investment up front to Stage the house - and price it for the market - but not just blow out the price as their only sales strategy. The other homeowners that live with the foreclosures in their neighborhoods that are driving house values down, down, down would support and effort by the banks and lending institutions to help the houses sell sooner than later.

This is especially true because the demise of the market is tied to the selling of loans to unqualified homeowners - and this whole mess was created by the banks that are now stuck trying to offload properties. In my opinion, the lenders created this, and the least they can do is do MORE to help these properties sell and help protect the value of the houses and homeowners that are hanging on to their properties.