Remodeled Homes Spending Less Time on Open Market
Field Asset Services, a property preservation firm based in Austin, Texas, revealed in an independent study that remodeled foreclosed properties spend less days on the market than homes which receive no rehabilitation.
In Field Asset Services’ second annual study, the firm found a 68% difference in how long foreclosed properties that receive construction work remain on the market compared to those that did not undergo any structural improvements. The 2010 study found a 54.6% reduction of days on the market for remodeled properties.
FAS tracked 17,252 properties from across 13 states in its 2011 study. The average days on the market for homes without rehabilitation was 222.8, while homes that were remodeled stayed on the market for 69.8 days.
The state that had the biggest difference in the remodeling study was New York, where properties that were not rehabilitated stayed on the market for about 350 days, while the sale time for remodeled properties was less than 100 days. Florida had the smallest difference in the study with approximately 100 days separating how long foreclosed properties remained on the market with or without construction improvements.
“Rehabilitating or implementing a REoMODELING strategy can reduce the time a property spends on the market while preserving, and in some cases, improving sales values and eliminating neighborhood blight,” said Dale McPherson, president of Field Asset Services.
More than 15,000 foreclosed properties were remodeled in 2010 by FAS vendors. The remodeling consists of improvements to the exterior and the interior of a property.
The REoMODELING solution, introduced by FAS in 2009, enables lenders to cost effectively rehabilitate foreclosed and REO properties. During the construction period, FAS qualifies and quantifies the potential cost for the rehab project and keeps lenders informed of the remodeling process by managing the construction from inception to completion.