Greening Your REO and Short Sale Properties

Cheryl King, Associate Broker, Keller Williams Realty East Valley/KW Commercial
www.hybridhomeliving.com

It is that time of year when we prepare our business plans for the coming year. We plan out how many transactions we need to close to reach our financial goals, set our budgets for online services and marketing and plan our 33 and 8x8 touch campaigns.

With the growing number of listed properties being REO and short sales, many of us will be focused on buyers or adding buyer’s specialists to our teams. These can be challenging transactions, however the distressed inventory is actually an advantage if you know how to “Green” the properties. Over the next few months, I will share with you how integrating Green into your business (residential and commercial) will grow your business and your bottom line. First, since “Green” has many different meanings, we need a common definition. When I refer to “Green” I am referring to a high performance home – one that saves energy, lowers monthly utility costs and increases the value of a home.

Tip #1: Rebates and tax incentives: A lender recently told me that 25% of the REO homes in the Arizona market fail to close because the homes do not have an AC unit or the existing one needs to be replaced and the buyer doesn’t have the funds to purchase a new AC. If the home is in an APS service area, APS will subsidize the cost of the new AC (www.aps.com) and there are federal tax credits as well (SRP will have a program similar to the APS program). Truly win/win: the buyer gets their home, a utility company rebate check after closing (some contractors will even advance the rebate), lower monthly electric bills and a federal tax credit. You close a sale and make a client for life. Next month, I will provide more information about how your buyer can benefit from energy efficient loans in addition to the utility company rebates and federal tax credits. Many tax credits expire on 12/31 so suggest that your clients contact their tax accountant today!

If you have a question you would like answered, please send me an email at cking@hybridhomeliving.com or call me at 480.747.8339. Also, watch our events page for the next Greening Your REO and Short Sale class.

As you brush up on your buyer mastery skills for 2001, add a touch of Green!