Finding a Good Foreclosure Cleanout Business
It is no surprise to Realtors and other real estate professionals that foreclosures have been on the rise for years. The real impact isn't simply the initial foreclosure - it's the ongoing, residual effect as the process plays out over months - and in some cases - for years. At some point in the process the services of a professional foreclsoure cleanout business is going to be required.
While the economy is showing some signs of improvement here and there, the housing market is still reeling somewhat from the fallout of 2008-2009.
According to an October 2015 CNBC report:
New foreclosures may be back to nearly normal, but the mess from the epic housing disaster in the last decade is far from gone. Bank repossessions, the final stage of the foreclosure process, jumped 66 percent year over year in the third quarter of this year, according to RealtyTrac, a foreclosure sales and analytics company. It's the largest annual rise ever recorded in bank repossessions by RealtyTrac. More than 123,000 homes went back to the bank in just three months.
Fortunately for some states, it does seem that the worst is over for now. Take California, for example. The same CNBC report went on to note that:
Foreclosure activity in formerly hard-hit states, like Arizona and California, is falling. Those states had much swifter systems for processing foreclosures, and investors helped to put a floor on home prices. In New Jersey in August home prices were still higher than a year ago, but just barely, up 2 percent from a year ago according to CoreLogic. Compare that to national gains of 6.9 percent.
Even though the current number of new foreclosures in California has dropped, the actual number of foreclosed homes waiting to be sold remains high.
Why is this?
According to a post on SFGate's "Home Guide" the problem is a reluctance to sell immediately.
Ideally, a foreclosed home will be repossessed and then resold quickly, usually at an auction sale. In California, lenders can sell homes they're foreclosing 21 days after they first officially notify subject homeowners that their properties are going to be sold off. However, foreclosing lenders aren't obligated to immediately sell homes they repossess and, indeed, many such homes linger. In fact, foreclosed homes sometimes sit in what's known as a shadow inventory for years before they're sold.
"Shadow inventory" describes foreclosure homes not yet available for purchase on the market. Mortgage lenders sometimes fear depressing resale prices of foreclosed homes if they put too many of them up for sale at once. If there are many foreclosure homes available at one time, a buyer's market may form, resulting in lower sale prices. In 2013, foreclosed California homes spent about 34 months or nearly three years in shadow inventory before they were sold, according to the "Inman News" real estate website.
What to Look For In a Foreclosure Cleanout Business
So, what does all this mean for real estate professionals?
A number of things and, among them, the need to clean these foreclosed properties and the inevitable rise of questionable ventures that tout themselves as a professional "foreclosure cleanout business."
A quick Google search for the phrase, "How to start a foreclosure cleanout business" brought back over 370,000 hits. The myriad of "start your own business" sites found on the Internet are rife with guides and websites designed to show people how to start their own cleaning businesses for foreclosed homes. And their most common targeted prospects are banks and real estate professionals.
This is not to say that all so-called "foreclosure cleanout businesses" are dodgy or imcompetent. In fact, the options available to you as a Realtor or real estate professional can be overwhelming depending on the area you are working in. However, there are a few key qualities you need to look for when choosing a professiona clean out firm for your foreclosed properties.
Too many times vendors are chosen simply based on cost. Because of the nature of the real estate business with having to invest so much up front before realizing any revenue from a sale, it is tempting to cut corners or always "go cheap". But, of course, smart Realtors and professionals resist that temptation.
So here are five things to consider when choosing a house clean out/junk hauling service:
- Does the company provide free, on-site estimates for clean out and junk removal?
A quality removal firm will not give you an estimate over the phone for this type of work. They will come to your property and work with you to determine the scope and potential volume of debris that will be produced. An estimate should include all phases of the removal work including any fees for disposal.
- Does the company offer both one-time and recurring debris pick-up and removal?
Larger properties and certain foreclosure situations can generate debris in amounts that may require a number of scheduled pick-ups and removal over a period of time. In addition, depending on the location of the property and the nature of the sale, periodic clean-up may be needed for aesthetic and public safety reasons because of remodeling or construction.
- How quickly can the company be on-site when needed and how fast will they be in completing the job?
Since many sales are time-sensitive and often have limited windows of time to allow for house clean out and junk removal, a company offering these services should be able to respond quickly, work quickly, and complete the task within the required time frame allowed. Flexibility and efficiency are hallmarks of a truly professional house clean out firm.
- Do they offer recycling and donation of items as well as disposal?
It’s one thing to pick up furniture, household debris and trash to be hauled off a local landfill. It's another thing altogether to have processes for placing usable items at local donation centers and recycling as much as possible. Junk King’s green profile and attention to recycling and donating at least 60% of all materials collected, makes the business a great house clean out service.
- Will the debris be properly disposed of?
Your local agencies, as well as the Federal and State agencies, have specific requirements for the proper handling and disposal of various materials and substances. It is paramount that whoever is tasked with removing and disposing of household debris be knowledgeable in this area. Professional firms will make use of the proper disposal sites and methods, while recycling as much of the materials as possible.
Next Steps for Choosing a Foreclosure Cleanout Service
While it is not expected that a debris hauling company is going to dust and vacuum , a professional firm will ensure that the site is left in a state that is safe and clean. This is especially important when a property has been abandoned or vacated hastily and there are large volumes of junk left behind. In a foreclosure situation this is often the case.
One critical aspect to selling the home is ensuring that it is cleaned up and looking good for prospective buyers. Specifically in the case of foreclosures, ensuring that all the previous tenant’s property has been removed from the home prior to putting it up for sale makes a big difference. Whether you are a real estate agent, or a homeowner that is handling your own sale, you know that getting rid of all that junk can be a hefty job.
Junk King provides an efficient, safe and eco-friendly foreclosure and estate clean out service so you don’t need to worry about cleaning out the home. Our hauling professionals will ensure that all furniture, appliances, carpets, debris or anything else is out of the home so that you can concentrate on making a sale.
Local House Clean Out Service and Junk Hauling
Matt Verga and his wife, Maggie opened their Junk King hauling franchise in 2013. The pair operates in Marin, Sonoma, and Napa counties, California. These counties could be said to be particularly “green.” Marin County is full of wide open spaces, coastal beauty, and woodland. Napa and Sonoma counties are justly famous for their vineyards and farmland. Being conscious of this beauty and being determined to be as "green" as possible, Matt works hard to ensure that recycling and reuse is a prominent aspect of his business.
Junk King was founded in 2005 to be fast, green, and customer friendly. "Junk King’s 'green model”'reduces landfill waste and reduces prices for our customers,” Verga says. In addition, the company’s commitment to charity allows the Vergas to donate items to folks in need.
The Right Company for Reliable House Clean Out Services
Once you decide to outsource the trash removal part of your real estate deal, you need to determine which firm is the right one for the job. And while you can certainly find plenty of guys with trucks willing to do the job, choosing that alternative may end up costing you more than you hoped to save. This is why Junk King really is the firm of choice.
Junk King is the leading business to business junk removal service in North America and our real estate junk removal services take care of this clean out process for you. It’s one big task off your to-do list and it’s a big step toward getting your property ready to sell or rent.
Speed, Reliability and Quality Service
We understand that as a real estate professional you need your homes to be pristine and you want to be able to list them as quickly as you can. We also understand that you appreciate hassle-free services and really can’t afford to have problems with a property. And your clients have enough to deal with when selling a home, so having the chore of junk removal handled by someone else is a huge bonus.
Junk King offers fast and friendly junk hauling with an emphasis on eco-friendly practices. We recycle or donate 60% or more of the junk we collect — including renovation debris, furniture and appliances, and even clothing and personal items. Real estate ventures can proudly call Junk King their green partner for real estate junk removal.
We are insured and offer post-escrow payment. Junk King handles junk removal services for real estate professionals across the U.S. and we are the highest rated service brand in the nation. You can depend on Junk King for speed, reliability and for the peace of mind that comes with getting your property ready fast.
Our team specializes in large waste removal and trash hauling. We can be on location in mere minutes, so call us today! Our crew is fully insured and well-trained, so you can trust them to get rid of your unwanted items in a professional and courteous fashion.
One of the best things about hiring Junk King is that we recycle a much of the material we pick-up. This is proof of our commitment to being an eco-friendly removal service. If you have questions about what we do or what we believe, give us a call at (707) 744-4254.
