If you are looking to invest in a new residence for you and your family, you might want to start with properties that have been foreclosed on. While these custom homes will likely need a little bit of work for you to fix them up, you will not be able to find a more affordable house or sellers that are more motivated to have their residences taken off of their hands.
While the number of foreclosed properties being sold is dropping, many experts have noted that the amount of money a person could save by purchasing one remains fairly substantial. In September, the median sales price of a distressed home was $130,000, which was nearly 40 percent below the market value of a home that was being sold under regular circumstances – $205,000.
According to RealtyTrac’s Residential & Foreclosure Sales Report for 2014, there are several real estate markets across the United States where potential buyers could save 50 percent or more of a home’s total value by purchasing a distressed property. This is due to a number of factors, including what shape the house is in and how quickly the seller would like to compete the transaction.
“Distressed properties are typically in poor condition and have a highly motivated seller, whether that seller is the distressed home owner in foreclosure or the bank that has repossessed the property through foreclosure,” Daren Blomquist, vice president of RealtyTrac, wrote in the report.
Some of the cities where you can save the most on foreclosed properties are Pittsburg, with most houses sold for 72 percent less than their market value, Milwaukee at 67 percent, Cleveland at 64 percent and Memphis at 59 percent.