With so many Millennials and others now forced to buy into Vancouver’s and Toronto’s steep homes prices (or remain rather homeless), that will likely lead to a increase in foreclosure rate into the foreseeable future; as perhaps under duress of a weaker economy in the future, they could be forced into foreclosure in perhaps droves.
If you have clients which have recently received a foreclosure notice; they probably feel like they have suddenly or completely lost control of their situation. This presents an agent with a great chance to prove their capabilities. Particularly in a strong market, one option would be putting their home up for sale. Not only does this allow your client to sell their home and repay their lender in full, while mitigating the foreclosure – but most importantly it helps protect their credit rating.
A foreclosure never benefits the homeowner. But when faced with that hard choice, your client can sell their home and still come out well. Here are some tips for selling a home before a foreclosure on your client:
A. Be the Right Real Estate Agent
Some agents actually specialize in selling homes for people dealing with foreclosures and “power sales”. Such agents understand the urgency of their client’s situation and work extra aggressively in finding immediate buyers for their home.
As an agent, did you know that real estate fees are negotiable? To help in the situation, you can find more foreclosure-threatened clients advertising yourself as an agent that is willing to accept a lower fee; to help offset the expected lower that market level selling price. Lower fees could mean saving thousands of dollars for your client, money which can be used as a down payment to get them into another less costly property. You might just be able to find two deals in one! See how that works?
B. Make It Look Good
The next task on your list should be to get their home in the best possible condition. Take over management of the clutter. Be heart-less about de-cluttering . If they don’t need it or love it, then urge them to get rid of it. If possible, encourage them to move their items, such as extra furniture, and store other over-plentiful items in boxes then into storage to make their home look bigger.
Next, make sure the home has good scrub. The windows should be all washed. Dust and clean floors and air out each room; the scent of Pine-Sol is so much more refreshing that cigarette odors and dust. If your clients are incapable, source a cleaning company.
The exterior should get a once over to help brush up curb appeal. If their liquid budget affords it or if you feel you can trust them, under contract to guarantee you are eventually reimbursed,a fresh coat of paint can go a long way, too.
A clean and airy home sells much faster than one that is cluttered. As your client needs a quick sale, make it easiest for a buyer to fall in love with the house.
C. Make Sure You Don’t Forget Marketing
To sell your desperate client’s home quickly, you also need to advertise assertively. If they are super desperate, maybe buy it from them yourself, or offer it to a friend for at low cost; knowing that it will be easily flipped for a higher price later.
Arrange for the best photographs that you can budget. Post free ads online on sites like Craigslist & Kijiji. Repost your ad on your FB page and ask friends to pass it on. Use any ways and means there are to promote the listing. The more people who see this special deal, the better the chance you’ll find an interested buyer quickly.
D. Get Legal Help
Because your clients have received a foreclosure notice, contact a real-estate lawyer if necessary. You also need to know how much time they have before the lender can take away their home. Depending on your circumstances, they usually have between 30 and 90 days.
E. Provide The Lender with Regular Updates ( great referral source )
Throughout the process, it is a bright idea to keep in contact with the lender. Keep them up-to-date on your progress as selling agent. Show them that you are motivated to help your client solve the problem. Let them know how hard you are working to produce “their money”. By being cooperative, your client might get extra support from their lender. They have the power to put the foreclosure process on hold, and to give you a little extra time to help your client sell the home; and naturally at a higher price than a rushed sale. There are no guarantees ever that lender will give you and your client an extra break, but it can’t hurt to ask/try.
Final advice
With a foreclosure, time isn’t usually on your client’s side. But by swooping in and acting quickly, you can often find a better solution that gives your client back some control over their lives. A recipe for real-esate success can be by helping others save themselves from disaster; usually a referral gold-mine.
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