Real Estate Education Training:
Why are there Squatters?
It seems that there are a growing number of discussions regarding the increased number of Squatters in vacant home across the nation. I have had the "squatter problem" in a few Real Estate Owned (owned by banks and/or investors) properties. I would receive a "pre marketing" list of assignments for the property which included weekly visits, photos and other tasks used to report to the bank/investor regarding activity around and within the property. There were a few times when I was surprised by an occupant while taking interior photos. In most cases the "squatter" was just as shocked as I. We talked and I informed them that they should collect their belongings and leave asap. They always complied and I am truly appreciative that they left without law enforcement or court involvement. These actions are very time consuming and would have distracted me from other real estate related commitments.
Fortunately, the banks and investors at that time were asking Realtors to move the inventory as quickly as possible. This was great for all involved including buyers anxious to become home owners. A buyers tour of existing inventory was more than adequate to give the buyers an expansive selection of properties for consideration. This was also a time when appraisals and market values were often below the bank and/or investors preferred price. Over time, I began to notice a change to more cash and/or conventional buyers. FHA and VA buyers were likely to lose out to a cash/conventional buyers in situations where the condition of the property might be impacted by a low appraisal or mandatory repairs. It was a challenge for sure.
Now, we are wondering what to do about "squatters" in vacant homes nationwide that are purposely being held off the market to artificially increase prices due to short supply. A recent online discussion topic related to squatters noted all the things we as Realtors can do to deal with this problem. I am very pleased to say that I have a solution for debate that I would like to offer. First, we have to think about who loses and who benefits by our due diligence in these situations? Individual owners as opposed to bank/investor owners are just as excited about selling their property and moving on as we are and would not be thrilled about having months turn into years while we get their property sold. Individual owners were often responsible for paying their mortgages, maintaining the lawns, HOA fees and utilities. Code enforcement and other local requirements were promptly handled by the individual owners to avoid costly fines. Realtors were not expected to pay these fees and submit paperwork for reimbursement. Everyone had a stake in a fast sale.
My idea for debate is that we turn our attention and considerable resources away from fighting the "squatter problem" for banks/investors for the few crumbs we "might" receive. We deserve better. Without our industry's involvement, many local communities would come down on these banks and investor groups like a ton of bricks. The "shadow inventory" would become more visible and we could return to our time honored profession of helping our clients with a good selection of marketable properties for our FHA, VA and other buyers.
Michael Teer, Broker
Certified Residential Specialist (CRS)
Teer One Properties, Inc.
(951) 313-5168
www.miketeer.com
ProbateSoCal@gmail.com
CalBRE#: 01523582/00843708
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