I have strong opinions, but I rarely make a rant into a post. This is a rant. Let me get it off my chest while I am still shivering:
BANKS ARE COMPLETELY NUTS!
One of the many ways they are completely nuts (definition: intent on acting irrationally) is in refusing to keep the electricity on in the Bank-Owned properties they have listed for sale in regions like mine.
Outside the sunny south, they endure the cost of weatherizing these vacant homes, turning off water service, taping notices to sinks and toilets, cluttering up the appearance of the home with notice after ugly notice. But I get that. They are risk adverse; they don't want broken pipes and water damage. I just showed a regular listing today that has obviously had that very problem....with the floor coverings all torn up because of it.
But do the asset managers have to also turn off the electricity? No, they don't. But they do.
Why in the heck do they do that?
Answer: because they don't listen to their REALTORS.
Any selling agent could tell them, that by saving money on power they are also:
1. Turning out the lights.
That means buyers can't fully "see" kitchens, bathrooms, garages and closets, even in the day time. Not being able to see features means you can't see their benefits or, ultimately, their contribution to value.
That means buyers can't see backyards at night. In fact they can't see the whole house at night.
That means the seller has effectively restricted access to the daytime.
That means they are making it hard for many working buyers to see the house in the evening.
That reduces their pool of possible buyers. Remember what a even a 5-7% fluctuation in demand can do nationally:
take us to boom, then take us to bust.
They have avoided the light bill....and lost thousands of dollars in price.
2. Turning off the heat.
Without heat in the winter, a house doesn't "feel" like a home. A home is supposed to feel warm and cozy. 
It's supposed to "feel" like a place you want to be. A home isn't supposed to be a place you want to get to hell out of as soon as possible.
No heat in the house, means all buyers will want to flee the premises for the warmth of the car waiting outside. Most will do so. 
Take away the heat and buyers literally cannot warm up to the house. They won't take time to see the home's many good points. They won't stay around long enough to see past the bad points.
By saving the heating costs, lender just eliminated...maybe even alienated....another segment of potential buyers...especially older buyers. Reduced buyers means reduced price. Remember what a even a 5-7% fluctuation in demand can do nationally:
take us to boom, then take us to bust.
3. Turning off their buyers.
I've been writing long enough, here in my warm office, that I am no longer shivering.
But I am still shaking my head in disbelief.
I just showed seven houses to some retired buyers - dressed for cold weather. A couple were toasty warm. A couple were merely comfortable. The other three colder than the worst arctic circle coat commercial.
Somebody, PLEASE, tell the bankers that this market needs all the heat and light it can get!
Just in case they haven't heard.
***********************
Jim Hale
Principal Broker / Owner
Graduate, REALTOR Institute e-PRO
2012 Member, Million Dollar Club of Lane County
2012 Member, Real Estate Brokers Million Dollar Club
actionagents.net
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Eugene, OR 97401-1962
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Boy Jim, don't get me started on the banks and how they have mishandled this whole housing crisis from the start. In addition to them CAUSING the thing in the first place, they don't want to take the measures to remedy the problem THEY caused. And turning utilities off is just ONE of the many things hey do wrong. Good post and best of luck to you.
Jerry -
I couldn't agree more... at one post a day, the full list of really dumb things the banks do...would take more than a year to chronicle.
Jim, completely agree. The other issue is when you get a contract, you need the utilities on for the inspections. Most REOs are sold "as is" , but there is still the right to inspect.
Way to often when buyers walk in to these homes that are really cold, they walk right out as all they can think about is getting warm again. Often because of condensation in the house, it will also cause mold in homes that sit vacant for months. This is costing the banks even more than they are already losing. (Just foolish)
Jim, While we don't list REO's, we sell them and I agree that a cold home is not attractive to buyers. From what we hear in our area, some REO agents have to take on payment for utilities. If the banks become slow paying, very few REO agents can carry the bills on multiple properties until after close of escrow; so they leave the utilities off until there is a contract. We have even seen some listings where the REO states the buyer must pay to turn the utilities on. I'm sorry - but that is just rude.
Down here at the Coast, Mold is a big problem if you turn the heat off.
Clay -
You are so right. Getting things turned back on is always an unnecessary hassle.....and sometimes the bank wants the buyer to pay for the turn-on, the re-winterize or both. It can be a real pain to negotiate on those points.
Todd -
It is foolish all right...and such foolishness is really a violation of the banks fiduciary duty to their own true owners/investors/stockholders.
Todd and Rob -
Mold is a true problem in our NW climate. Surely these institutions have paid through the nose to get rid of it. You would think they would learn.
Hi Jim ~ You are so right about this! Buyers will NOT linger in a cold house and can't wait to leave ... plus how can they see the home's features when it's DARK? Hello!!!!! The banks need to get real and keep those utilities on.
Good morning Jim.
That is not smart business on the part of the bank.
Have a nice day.
Maureen -
Needless to say...the banks NEVER have someone like you stage their properties in a business-like attempt to get the best price possible. That's just one more way they act against their shareholders interest.
Joshua -
Thanks for commenting. It is certainly not business like on their part.
Jim, GREAT post and suggested for a feature because this needs to be HEARD LOUD AND CLEAR by the banks and asset managers. However, I must disagree with you just a tad - it's only 40 degrees F today here in Scottsdale, AZ and, while not below freezing, it's cold to us, LOL. However, how about showing homes in 110 degrees F in the heart of the summer with homes with no electricity to cool the homes. First off, the smell of the hot, stagnant air becomes unbearable in just a day or two let alone how uncomfortable it is to try to show the home. As your people may walk back out immediately because they are cold - how about walking back out because the heat is unbearable. LISTEN UP ASSET MANAGERS - THIS IS THE REALITY!!!
Juli -
I wouldn't doubt but what the banks are just as dumb in areas with hot summers as they are in cold winters.