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 - Akron, OH
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.
Sep 03, 2007 10:29 AM #1
Rainmaker
207,192
Robert Smith
Preview Properties, PC - http://www.RealEstateMich.com - Brighton, MI
Search for Homes, Brighton-Howell-SE Michigan

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.

Sep 03, 2007 11:07 AM #2
Ambassador
528,394
Konnie Mac McCarthy
Realty Direct, LLC/Realty Direct, Inc. - Mc Lean, VA
Associate Broker - VA & MD
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
Sep 03, 2007 11:28 AM #3
Rainmaker
207,192
Robert Smith
Preview Properties, PC - http://www.RealEstateMich.com - Brighton, MI
Search for Homes, Brighton-Howell-SE Michigan

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.

Sep 03, 2007 11:36 AM #4
Rainmaker
331,032
Andrew Monaghan
Your Phoenix Home Source - Glendale, AZ
CRS, GRI, EPro Associate Broker

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?)

 

Sep 03, 2007 12:48 PM #5
Rainmaker
721,913
Barbara S. Duncan
RE/MAX Advantage - Searcy, AR
CRS, GRI, e-PRO, Searcy AR
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.
Sep 03, 2007 03:38 PM #6
Ambassador
528,394
Konnie Mac McCarthy
Realty Direct, LLC/Realty Direct, Inc. - Mc Lean, VA
Associate Broker - VA & MD
Holy cow...I had no idea...thanks for the info...
Sep 04, 2007 11:13 AM #7
Rainmaker
180,430
Jack O'Neal
Solutions Real Estate - Phoenix, AZ
High Touch High Tech

 

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

Sep 05, 2007 11:44 PM #8
Rainmaker
88,900
Paul Moye
Benchmark Realty - Franklin, TN
Broker, GRI, SRES
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
Sep 09, 2007 10:25 AM #9
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Konnie Mac McCarthy

Associate Broker - VA & MD
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