Language is important. The way we describe things can evoke certain emotions and reactions, so we must choose our words carefully. This is true in all aspects of life, and definitely true in real estate. I always smile when I see the ways agents attempt to not say “bank-owned” or “REO” or “Foreclosure” in listings. I suppose if potential buyers would be put off by “FORECLOSURE”, then by all means, use a different word or phrase. In place of “bank-owned” I’ve seen “corporate-owned” or “owned by the mortgage company” or “lender-owned” or “liquidation sale”.
If you were in the market to purchase a property, would it matter to you whether something was labeled as “corporate-owned” or “foreclosure”? Is there any stigma in your mind for a home that is selling as bank-owned?
Ryan,
It seems that if a property is listed as foreclosure potential buyers can automatically low ball an offer. At least that is the impression I have gotten. I guess the agent does not want to give that impression, which I think is ok. Foreclosures of 5 years ago are not the same as they are today. I find most of the ones these days are nicer and in better condition and compete quite well with “normal” sales. I think banks are doing their communities a disservice by dumping their “bank owned” homes. If they would price them better and allow for them to stay on their books a little longer they would probably sell for a higher amount and not contribute to decreasing values in communities.
Interesting comment in that “foreclosures of 5 years ago are not the same as they are today.” I think people have become more used to the idea of purchasing a foreclosure – because there are so many of them. One would be hard-pressed to say you didn’t know a person or know of a person who has faced foreclosure in the past few years (at least in my area). It’s been so rampant and commonplace.
It would be great to see properties truly priced for 90 days.