Monday, March 11, 2013

Are Foreclosures a Better Buy Than Short Sales?


Consumers may find buying a bank-owned home better than buying a short sale. Increasing REO inventory, deeper discounts, and shorter times to close can make foreclosures a more attractive option to home buyers, according to new data from RealtyTrac. 
The average sales price of a bank-owned home is at least 30 percent below the average sales price of a non-distressed home, according to RealtyTrac’s analysis. 
RealtyTrac identified some of the following best markets to buy bank-owned homes:
Cleveland
Average REO sales price: $57,782
Percent below average non-distressed sales price: 56 percent
Dayton, Ohio
Average REO sales price: $50,579
Percent below average non-distressed sales price: 57
Charlotte, N.C.
Average REO sales price: $111,260
Percent below average non-distressed sales price: 43
Columbus, Ohio
Average REO sales price: $87,994
Percent below average non-distressed sales price: 48
Palm Bay, Fla.
Average REO sales price: $87,018
Percent below average non-distressed sales price: 39
Winston-Salem, N.C.
Average REO sales price: $72,356
Percent below average non-distressed sales price: 49
Daytona Beach, Fla.
Average REO sales price: $88,012
Percent below average non-distressed sales price: 33
Source: RealtyTrac
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