Lenders, investors, brokers, REITs, and other entities in possession of real estate-owned (REO) properties need qualified remodeling and renovation services to get their properties market-ready. Each day that a property remains unsold represents potential lost profit.
Therefore, companies and contractors providing residential REO renovations services are entrusted with getting properties up to standards to be sold quickly. Lenders want to sell these properties as quickly as possible to recoup some of the money they’ve lost from the foreclosures on these residential homes. However, they want to do so without compromising safety or quality in the process.
Be on the lookout for the top companies that offer the most valuable residential construction services available, some of which include:
- Real estate owned (REO) renovations
- Real estate investment trusts (REITs)
- Insurance claims handling
- Partnerships with contractors
- Rental property turns
- Homeowner services
Not every company is qualified to work with lenders and investors to get REO properties market-ready. Only the best renovation consulting services will do. A company with a firm understanding of the industry is required. Contractors must follow various regulations and standards for REO properties, which do not apply to non-REO properties.
Below, you’ll find some suggestions on finding the best companies and contractors to help with your REO renovations.
Make Sure the Company has Experience with Residential Renovation Services for REOs
When providing funds to purchase residential property, the biggest risk lenders face is having a customer default on a mortgage. When this happens, the lender takes ownership of the property. This outcome is common when a property is foreclosed and has failed to sell at auction.
Unfortunately, these properties are often in poor shape or require extensive repairs or renovations before being listed on the market. Even though many homes are listed for sale in “as is” conditions, they still must meet industry regulations.
Lenders in this situation have been burned by borrowers who defaulted on their loans. They want the best construction companies or contractors to renovate, repair and remodel properties to make sure they will sell at the best price possible. The better the property’s condition, the higher price it will sell for, and the more money a lender can recoup.
This price difference is why any REO construction or renovation company you are considering hiring must have experience with and understand what is at stake with owning REO properties. Experienced companies will devise extensive renovation plans to satisfy codes and regulation requirements without costing the property owner more money than necessary.
The REO Renovations Company Should Have Relationships with Housing Entities and Professionals
Proof of experience is evident when a company has formed many strategic business relationships with other organizations, groups, professionals, and institutions. From government agencies to the top sub-contractors in town, every excellent construction company that handles REO remodeling and renovation services will have an impressive “circle of friends” with whom they do business.
Look for companies that have done work for local, state, and federal organizations and groups. Always ask companies you are considering hiring what kinds of experience they have with REO property remodeling and renovation services.
Charter Construction Group, for example, maintains relationships with various professionals throughout the industry, as well as with housing entities like Fannie Mae. Other important clients that the top construction companies maintain business relationships with might include:
- Farmers Insurance
- Hudson Home Management
- JP Morgan Chase Bank
- Freddie Mac
- City Housing Authorities
- Wells Fargo, Wachovia, and other major banks
When a company partners with clients such as these, you can rest assured that the group is reliable, dependable, and worthy of the trust that such esteemed entities have placed in it.
The Company Must Provide the Services You Need
Before you go too far, make sure the company you are considering for your REO renovation consulting services can perform the tasks you need to be done. Whether that’s trash removal, mold remediation, asbestos abatement, fire or water damage repair, remodeling, redesign, or anything else, there are many things your property might need.
An excellent company should either provide all of the needed services or pull from their group of trusted contractors to get the job done.
Make sure that no matter what your needs entail, you take the time to interview each potential candidate before hiring a company for REO renovations. You’ll find that it is well worth the effort because the best company for your needs will be able to get your property market-ready at top dollar in the least time.
Ready to Select Your REO Renovation Company?
Charter Construction Group provides top-level REO renovation services. Request a consultation to find out more about how we can help you maximize your return on investment on your project.