Asset Management

Now Is the Time to Winterize REO Properties

• by Andrew Oliverson
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Expert advice to get ready for winter by Andrew Oliverson The enormous demand for rental housing and the scarce supply of new properties has created white-hot conditions for those with inventories of well-kept, salable assets. But cold weather comes to even the hottest markets and as winter approaches, it is wise to take actions now to keep those properties ready for the sunnier days ahead. The timing is critical as acting now to winterize assets is the best way to avoid having an otherwise valuable home fall into disrepair. There are several steps to take when preparing a vacant property for the winter. Ideally, to ensure the protection of assets from the seasonal elements and to help identify and address any potential maintenance issues before cold weather sets in, properties should be spruced up in the early fall and winterized soon after. Winterization should be thorough enough to maintain the property in good order from early October until the end of March or longer, depending on the local weather and temperatures. In addition to identifying and addressing any urgent interior maintenance issues, a decent fall spruce-up should include a focus on exterior conditions: Remove all exterior debris. Perform a final lawn cut and remove all grass clippings, leaves, limbs and debris from the property. Leaves, pine needles and twigs should be removed and disposed of offsite in an appropriate manner. Flowerbeds, driveways and sidewalks should be edged. Remove all weeds and saplings from flowerbeds and around shrubs and fence lines. Weed-wack around the house, fences, and trees, and remove dead vines from fences, latticework, etc. Remove all fallen limbs and excessive leaves from the roof. Clean out gutters and remove all holiday lights. If there is a gutter guard, replace it after cleaning out the gutters. Prune branches from trees and shrubs that encroach on entryways, walkways, or sidewalks and trim at least four to six inches from the house or roof. With the property looking well-kept on the outside and in good working order on the inside, listing brokers should turn their attention to winterization and consider some of these best practices:  Electrical and heating services should be up and running and must remain on. The temperature within the home should be set at a reasonable temperature to prevent interior freezing (usually above 50 degrees).  If the property requires significant plumbing repairs or when a boiler is involved, a general contractor, licensed plumber or an accredited entity with the professional expertise should complete the winterization. If the property was winterized prior to your adding it to your inventory, it should be re-winterized to ensure that every step has been taken properly.  If the property is frozen when it comes into inventory, obtain bids to thaw the pipes prior to winterizing. The year 2020 has been a roller coaster for all of us. The pandemic and the responses to it have contributed to distortions in the real estate market. In our industry we’ve seen glutted real estate markets suddenly heat up and clear in a matter of weeks. But until conditions improve, the market for real estate will continue to experience extraordinary market-to-market fluctuations. Taking basic tried-and-true winterization steps will protect homes well into the cold winter months and bring a level of certainty into uncertain times.