I’m working this weekend with an out-of-state investor. I don’t know that Phoenix has hit the bottom in what is the ninth quarter of declining home prices, but we’ve shed enough value that newer suburban tract homes can once again throw off positive cash flow as rental properties.
That’s the happy news. The sad news is that many of the houses that seem to be attractively priced to investors are in some stage of the foreclosure process, from negative equity to short sales to lender-owned properties.
If you do this job long enough, you see just about everything. If you’re good at drawing inferences from artifacts, you can figure out the story of the home life in just about any house — family structure, recent financial history, reason for moving — whether or not the survival machine that is a home is functioning properly.
But in a normal market, in a normal time, in a normal neighborhood, the tragic stories don’t come so thick and fast. Who hasn’t seen a skip? Who hasn’t seen an eviction? Who hasn’t seen the sad tell-tales of divorce? But it’s a rare thing to see these awful signs twelve or fifteen times in a single day.
Look at this:
I saw kids’ bikes left behind in several garages today. Not enough room on the pick-up truck, the truck packed to bursting with everything the family could carry. Children are so easy to hustle. I can hear the fake enthusiasm behind the lie: “We’ll get new bikes! Better bikes! You’ll see!”
That’s sad, but it was those ceiling valences that got me, those fabric clouds in a girl kid’s sky. That’s a mother-daughter thing — “What can we do to make this your room?” Not too much money to spend, but just the right touch, just the right expression of a budding young lady’s individuality. Abandoned in the rush to get gone. Will that little girl ever be able to look at a ceiling and not miss those fabric clouds?
I see this all the time, and I never get over it. That’s a man trying to kick down a door so he can beat up a woman. In this particular case, the poor woman was trapped in the walk-in closet, nowhere else to run. I don’t absolve the woman — why did she get involved with a jackass? — why didn’t she learn self-defense? — but I damn the man sight-unseen, in perpetuity.
And while we’re about it, let’s condemn the listing agent, too, for not replacing a $20 door. All of the houses I saw today were horribly serviced, by our standards. Filthy, in palpable disrepair. Desperately in need of touch-up painting, at a minimum — and many needed new paint, new flooring and all-new kitchen appliances. Every single house was festooned with thick weeds — in the front yard.
My presumption is that every one of these listing agents is getting paid — or would get paid if the houses ever sold. But I can’t for the life of me figure out why anyone would expect any of these houses to sell — at least not without slashing prices to absurdly low levels.
Oh. Right.
This photos says it all for me. Five minutes with a vacuum cleaner, and I would know nothing about this harbinger of neglect. I’m sure the listing agent is well-schooled in the art of pissing and moaning about the lousy real estate market, but five minutes of easy effort to protect the seller’s investment — even if the seller was too lazy to look out for himself — is just too much work.
This picture is my favorite, though:
How long has it been since the listing agent serviced this home? The sparkly thing at the top of the door says “Merry Christmas.” Why hasn’t this house been taken over by crack-heads? Because there aren’t enough crack-heads to go around…
I feel very bad for the people who lost their houses. And I wish it were not so easy for me to figure out what happened to them. But I despise the kind of Realtors who would take on listings like these and then do nothing at all to preserve the value of the asset.
I don’t believe in god and I don’t pray, but tonight I’m going to make an exception. I’ll say a prayer — to who knows what — for the little boys who lost their bikes and for a little girl who lost her fabric clouds. I’ll pray for the women who love men who sometimes hate them, and for the men who hate themselves too much to love their women. But my deepest, most profound, most sincere prayer will be for listing agents like those whose efforts I encountered today.
I will pray, with every bit of solemnity I have within me, that this thing we are doing, this Holy Church of Excellence, will at last put every lazy Realtor into a line of work he or she can actually do. Justice in the economy can be disruptive in the short-run. But, in the long-run, everybody wins.
Technorati Tags: real estate, real estate marketing, real estate photography, real estate training
Ann Cummings says:
That last picture is inexcusable – so easy to pick up trash, old phone books, take down that Christmas decoration – just a few minutes and what a difference that front entryway would convey.
All of those situations are very sad, especially with the kids and their things being left behind. I do a lot of BPOs, and I usually leave those properties with a heavy heart, thinking about what went on in that home and wondering where those families will land next.
March 12, 2008 — 3:01 am
CRay says:
.. Indeed, that picture certainly burdens ones heart..
But — after looking at 4,500 credit reports in the last 2 years, and seeing 75% of the consumers have been using their credit lines for $15,000 home theaters, Brazilian granite tops in the patio at $5,500 a pop and leasing 2 new vehicles 9 months ago, and basically using their homes for ATM machines before their mortgage adjusted .. you now have to wonder …
In 5 years, will the caption read: “how I worked hard and got screwed by the lenders and realtors..”
Or should it read: “I got stupid and greedy and I screwed myself ..”
You can bet while telling this story to his daughter in 5 years it won’t be door #2.
.. thoughts.?
March 12, 2008 — 4:22 am
Teri L says:
Excellent job with a tragic subject, Greg.
March 12, 2008 — 4:54 am
Kevin Warmath - Alpharetta Real Estate says:
Given that Georgia is in the top 5 states for foreclosures I’ve seen my fair share of “distressed” properties. Greg, add some humidity to those pictures, oh, and some insects, and you’ll get the picture (and smell) from GA.
Listing agents don’t do diddly squat to improve the property – even if they should or even if it is just a minor thing. Now you and I would pick up the papers and maybe detrash it a bit, but most REO agents don’t even go to the properties. They send their sign person out and that is it. For these agents, it is simply a numbers game. They are willing to work for the reduced commission, but they aren’t going to do much for it. Sad.
You almost need another layer of oversight on these properties: a firm that will go out and check on the agent to make sure they are doing what they should be. Good service is hard to find in the REO world, even though it would be so easy. We made offer for a client in on a foreclosure property ten days ago and we can’t even get a response from the bank. It is total chaos.
March 12, 2008 — 5:01 am
Doug Quance says:
I would submit to you that the banks are getting what they pay for.
They could choose full-service brokers to handle their REO properties – but they don’t. To the banks – it’s a numbers game. I don’t expect their REO agents to behave any differently.
March 12, 2008 — 5:56 am
Beth says:
I viewed a $1 million, lender owned property recently. It was dirty (the “gorgeous” shower was filthy), light bulbs were burned out, not one speck of staging, etc. I kept thinking – hey, give me this listing – at the very least I’d replace the lightbulbs and run a dust mop around the place. If I had listing clients who owned the place I’d “yell” at them to do that, why shouldn’t I be expected to do so as well?
March 12, 2008 — 7:05 am
Tom says:
Greg
Best post in a while. The humanity that is missing in the foreclosure process is probably the hardest thing to handle. Sure it is business, but business can be done with respect.
March 12, 2008 — 7:35 am
Lane Bailey says:
Greg… last summer I wrote a post about going to an eviction on behalf of another agent in my office. It was a pretty sad thing. The people weren’t there, but the clues of their lives were. We are pretty sure the “owner” wandered by during the day (seat in the garage that matched the slow moving van).
The worst part? It was a real estate agent that should have known better and been able to do something before it went to foreclosure.
March 12, 2008 — 7:56 am
Gatlinburg Real Estate | Annie Maloney says:
Greg,
I have tried and tried to understand the logic and the reason as to why some listing agents aren’t worth the flesh that covers them. I have seen some listing photos that are similar to the ones you have posted. Some worse! There has been alot of blowback because of this and we (The Real Estate Community) have been under fire for being overpaid, coniving and dishonest. Well Duh. This is the legitimacy that warrants those statements. Personally, if I were the broker of an office that had an agent post pictures like those above, their license would come down off the wall and get placed in their hand.
March 12, 2008 — 8:29 am
Linda Slocum says:
I was looking at bank-owned properties with a buyer this weekend, and had the same results. I thought that the banks wanted their listing agents to make some effort to make the homes viewable, but apparently not! One was in horrible condition, with 30-year-old filthy carpet, disgusting bathrooms, and a dead animal smell in the pantry (peee-uuuuu!!!). It doesn’t take much to get a place like this at least reasonably showable, but apparently either the bank of the listing agent (or both) didn’t care to put out the effort. The listing agent hadn’t even bothered to turn on utilities.
March 12, 2008 — 8:41 am
Eric Blackwell says:
Greg-
An awesome job of conveying what many of us feel. You have a gift with expressing thoughts through words. I share both your sadness at the tragedies and your fury at the senseless pain inflicted on the innocent.
Someone commented above about this being your best post in a while–a hard call. I will say it lets people see into you quite a bit. Kudos for that.
Well done, my friend.
Eric
March 12, 2008 — 8:48 am
Kay says:
Greg,
This was brilliant! With all the talk of the “REO and short-sales market”, we forget about the people involved before it ended up in this crazy market. Thanks for making sure we don’t forget.
Also, I hope the agents who read this and see their listings in these descriptions, do what they are expected to do and MARKET the property they are hired to sell. If that means a little cleaning, they need to do it. The clients (whoever they may be, person or institution) deserve what the agents are getting paid for – unless of course you listed it as a filthy, pest-infested property…
March 12, 2008 — 9:23 am
Greg Swann says:
Thanks for all your kind remarks.
FWIW, one of the things I’ve liked about looking at these trashed houses is that there is none of that follow-up nonsense. The listers might be lazy, but at least they’re lazy enough to leave me alone.
One thing I didn’t tell you last night is that the last three of those photos are from the same one house — not that there is anything rare about the condition of the home.
But: Guess who I just heard from, by email…?
March 12, 2008 — 10:54 am
Ken Smith says:
It is amazing to see some of the things that get left behind. Was in one the other day and there was 2 boxes of kids toys, the box had the kids name on it. Then a few other misc things in other rooms. The tenant had been kicked out and the owner changed the locks on them in the middle of them moving out, with the sheriffs help naturally.
As a landlord I understand this to a point, but give the kid his toys.
March 12, 2008 — 12:33 pm
Andy Piper says:
Defending sellers who are facing foreclosure – Many are good people who lost jobs, could not refinance at a lower rate when their loans reset and fell behind because of the higher payment, got sick and had no insurance, needed to move but their house is now worth 50k less than what they owe (even before the home equity line) etc.
When these things happen, people get bad attitudes, experience high levels of stress that causes less than ideal behavior!
I have sympathy for these people.
Here in the Ann Arbor and Metro Detroit area we have our fair share of these things. We have a lot of inventory to work through and more to come creating great opportunities for real estate buyers.
March 12, 2008 — 1:10 pm
Lenore Wilkas says:
Every house has a story and some of them aren’t happy. We don’t have a huge number of REO’s in our community so we don’t see as much of this. What really bugs me is seeing agents from well out of our area listing short sales and REO’s with no pictures, no info in the listing — sometimes not even admitting it’s a short sale which is so against the MLS rules — and expecting us to clean up after them in offers. I steer my clients away from a lot of this to save them from the worry and heartache that can come with shifty, lazy agents.
This was a great article. Unfortunatley the agents who need to read it won’t or don’t.
March 12, 2008 — 4:05 pm
Malok says:
Wow! Those pictures are just unforgivable. I have to agree with you about the last one particularly though. That photo says “This home is abandoned! Squatters — move in now!”.
Though, I guess viewing from a slightly less cynical (and realistic) viewpoint, it could just be that the persons are one of those that feels that it should be Christmas all year long. 😛
March 12, 2008 — 5:18 pm
monika says:
You actually made me cry Greg.
I’ve seen so many of these types of homes and asked the same types of questions. Why would a listing agent not take the time to clean it up a little? If the seller lived in the house they would make sure that the seller understood the importance of staging and the importance of the whole presentation.
Nobody seems to care though.
March 12, 2008 — 7:21 pm
ardell dellaloggia says:
Clearly this is my absolute favorite of any post I have ever read of yours. I had to go back up and double check that it wasn’t written by Cathleen 🙂
Can you nominate yourself for an Odysseus Medal?
March 12, 2008 — 7:40 pm
Steve Trimboli says:
Excellent topic Gregg.
It puts a real human aspect on the foreclosure problem.
I’ve been in houses where the toddlers things, clothes, car seats, toys etc are in a pile in the front room.
Your post brought that same lump to my throat.
Can we instead speculate that the smashed door was due to a tenant hearing, for the first time, from the bank or the sherrif that the owner hasn’t been paying the mortgage and they have 24 or 48 hours to vacate?
This type of disrepair you’ve shown us illustrates the limited service agent, but as professionals, we owe it to each other to pick up some junk, grab a broom or a weed trimmer & Git R Done!
March 12, 2008 — 10:31 pm
Andy Piper says:
I was in a foreclosure condo in Ann Arbor MI yesterday that had a dishwasher full of dishes. At least they were clean.
March 13, 2008 — 3:22 am
Wayne Long says:
Awesome job of depicting the tragedy that surrounds the loss of one’s home. Families dreams are dashed daily. Thanks for bringing out the human side of this thing.
March 13, 2008 — 6:00 am
Brad Coy says:
>nowhere else to run
Your sharing, this photo, and the sounds it created in my imagination have me thinking that this is one of my all time favorite posts. Very powerful.
March 15, 2008 — 5:34 pm
Greg Swann says:
> Your sharing, this photo, and the sounds it created in my imagination have me thinking that this is one of my all time favorite posts. Very powerful.
Bless you, sir. Thank you. The market will correct itself and our memories of these events will fade. But for the people going through them from the inside, the things they’ve had to live through will always be with them. There’s that stark contrast — from the pride of a pot-luck house-warming to the shame of foreclosure — that can stain a mind forever. To better days…
March 15, 2008 — 5:44 pm
Hunter Jackson says:
listing agents servicing homes? thats a new idea to me. Obviously I am kidding.
We see this all too often with foreclosures. Unfortuntaely the feel that it is just not worth it. They will be paid either way.
June 24, 2008 — 11:44 am
Luke Petty says:
As sad as these pictures are – what about the safety issues in some of these neglected foreclosed homes?
Things that would have never been acceptable just a couple of years ago now go uncontested. Its like we have become calloused and we’re just accepting unacceptable practices as the norm.
I have set showings and declined to enter certain parts of the house once we arrived on many occasions due to concern over safety issues. And many of these have been newer homes in great areas, not slums.
I know our industry is in a state of “shock and awe” and I can understand REO agents not coming by once a day to dust, or even having spotty lawn care. But allowing showings with 2 ft of standing water in the basement? Or water damaged flooring that could collapse at any moment? Or failing staircases?
I think there should be responsibility placed on the banks and REO companies that represent them to meet some kind of minimal “safe to show” standards.
I know they have their plate full as well in this housing debacle, but when they foreclose and take possession, like it or not, they are the new owner. And just because they’re a bank, agents shouldn’t be able to just throw a sign out in the front, list it in the MLS, and be relieved of all other responsibilities. Its unethical – especially for an industry that prides itself on “ethics”.
Just my 2 cents…
July 14, 2008 — 7:20 pm
CRay says:
… Excellent point Luke..
I think most realtors have gotten lazy – or perhaps a better word would be “spoiled” in the last 6 or 7 years..
Gone are the days of calling a seller for a showing in 30 minutes and having them “detail” an already clean home in short order …
Now with “shock and awe” (well said) .. agents need to get over the shock and start doing something awesome when it comes to showing these homes — and always blaming the lenders isn’t part of it.
If the REO companies are going to represent them, then they need to be proactive in the marketing of them … I’ve shown 11 of these in the last 3 months and 6 of them have been unsafe …
When I showed the lender(s) the situations and the issues on my digital camera, my pictures were the only ones in the file — which means, they were never aware via the REO agents … but they addressed the repairs in 30 business days or less.
That said .. the listing agent(s) could have done this 6 months ago.!!
You’re right, it’s another black eye on our already blackened industry — Its unethical – especially for an industry that prides itself on “ethics”.
—
July 15, 2008 — 4:21 am
Sue says:
Excellent post Greg. Those pictures are very sad and do indeed tell a story. Sometimes we get caught up and don’t stop to reflect on what has actually taken place and the people aspect of these situations. The last two are particularly disturbing in that the realtor could easily have made a huge difference with a little effort. The picture with the banged up door, ugh.
July 24, 2008 — 6:53 pm
Jon Boyd says:
Greg,
You’ve captured a feeling I’ve had a lot when I’ve been showings homes the last two years.
It is so sad to see a home and think of the sadness of the people who have left it.
Fortunately I haven’t seen any of the banged up door things in our market here in Ann Arbor.
September 28, 2008 — 8:42 pm