Foreclosures Sell @ 30% Discount

Foreclosures accounted for a third of all sales — and sold at a nearly 30% discount — during the first three months of 2010. According to a new report from RealtyTrac, the marketer of foreclosed properties, 31% of all sales were foreclosures. And homebuyers purchasing those properties paid a whopping 27% less, on average, compared to sales of non-distressed homes.  These stats courtesey of NEW YORK (CNNMoney.com) 

These foreclosure sales include properties sold in short sales or after a bank repossession, known as REOs in industry terms and it does not include transfers from borrowers to banks, as in a sheriff’s auction.

REOs (Real Estate Owned), those homes already taken back from borrowers, commanded lower prices than short sales and other pre-foreclosures. The average REO sold for 34% less than conventional sales while pre-foreclosures averaged only 15% less.

Part of the reason for the bigger price cut for REOs is that many of them come to the market in poor condition, their previous owners either unable to or unwilling to maintain them.  Foreclosures have become a dominant feature of many real estate markets, finding willing buyers among young bargain hunters and savvy housing market veterans.

Lenders have been trying to manage their inventories of foreclosed homes to prevent them from flooding the market and dragging down prices.  For the Dallas-Fort Worth metroplex you can expect multiple waves of foreclosures to hit throughout the rest of 2010 and then beginning to level off for 2011.  For a list of REO properties discounted 30% + in the metroplex do not hesitate to contact me. 

Dallas-Fort Worth Foreclosures