REO's & Utilities

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Real Estate Agent with Realty Direct, LLC/Realty Direct, Inc. 0225079749 VA

Hello, I have been reading alot of posts with regard to some of the nighmares of paying to the utilities, debris removal, clean up of REO properties, is this is exception or the rule?  I have gone into many bank owned properties, where all the utilities were turned off...and I have even spoken to one agent who told me, if my clients were interested in the home, she would turn them on for the walk through, so is this an option, having the utilities on...?

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Rainer
3,576
Kathleen R. Cosner
Cutler Real Estate
To be honest, most of mine don't have the power on.  It'd simply be too inviting for people to break in & have a new crash pad.  Also, because a lot of the REOs in this area are completely torn up & not maintained, they would require extensive inspections prior to being turned on, a cost which most banks will not foot the bill for.
September 03, 2007 10:29 AM
Rainmaker
203,855
Robert Smith
Search for Homes, Brighton-Howell-SE Michigan
Preview Properties, PC - http://www.RealEstateMich.com

It depends upon the lender or asset management company. Some require electricity and gas turned on so the place doesn't freeze in winter. Some are billed by the utility company directly, some require you to have the utilities in either your name or your brokerage's name and to pay the bills. They then reimburse you.

There are 'extra' overhead items in this type of property listing for Realtors. Know that when you get into it.  There are also a higher percentage of deals that fall before closing due to the marginal nature of buyers that are attracted to the lower prices, although that can be remedied in a number of ways. Most also require you to drive by weekly to do a quick visual check on the home.

September 03, 2007 11:07 AM
Ambassador
526,551
Konnie McCarthy
Associate Broker - VA & MD
Realty Direct, LLC/Realty Direct, Inc.
I had no idea..thank you for the information, so many websites make it sound easy to list these homes...I know is it another avenue..but it is clear that I really need to do a little more research before I even entertain it..thanks again
September 03, 2007 11:28 AM
Rainmaker
203,855
Robert Smith
Search for Homes, Brighton-Howell-SE Michigan
Preview Properties, PC - http://www.RealEstateMich.com

There's no such thing as an easy buck in Real Estate, Konnie. (unfortunately!)

REO is tough because every property holder (bank, investor, etc.) has their own set of requirements.  I'm sure you'll educate yourself quickly.  If other agents in your office are holding this type of listing, you can surely learn a lot from them.

September 03, 2007 11:36 AM
Rainmaker
330,562
Andrew Monaghan
CRS, GRI, EPro Associate Broker
Your Phoenix Home Source

i work REO in teh phoenix Metro area and many of the banks that I represent have different requirements for utilities but mostly they require that they are all turned on both for the safety of the home and to make it more show-able (sp?)

 

September 03, 2007 12:48 PM
Rainmaker
713,834
Barbara S. Duncan
CRS, GRI, e-PRO, Searcy AR
RE/MAX Advantage
Usually you are expected to get the house cleaned up and you can't do that without power and water.  I have to pay and get reimbursed on most of the ones I do.  I just got reimbursed for over $3000 so you see how expensive it can get.  Of course that money also included cash-for-keys, trashout and other things besides utilities.
September 03, 2007 03:38 PM
Ambassador
526,551
Konnie McCarthy
Associate Broker - VA & MD
Realty Direct, LLC/Realty Direct, Inc.
Holy cow...I had no idea...thanks for the info...
September 04, 2007 11:13 AM
Rainmaker
167,804
Jack O'Neal
High Touch High Tech
Solutions Real Estate

 

In Arizona, we need to have the power and water on for the yard, and power for the pool. Green pool is bad and illegal in most counties.

 

Be safe

September 05, 2007 11:44 PM
Rainmaker
88,900
Paul Moye
Broker, GRI, SRES
Benchmark Realty
In my years of experience in REO I would hav to say that in most cases it is the agents call to turn on or not turn on utilities. There are codes and customs that should guide you on when to turn on the power and water and then there is common sense. Once I had the water turned on at a property and received a $312 water bill. Seems the neighbors were filling up their pool, watering the lawn and washing cars. You just never know in our business
September 09, 2007 10:25 AM
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Ambassador
526,551

Konnie McCarthy

Associate Broker - VA & MD
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