Distressed Property Discount

On September 7, 2011, in Foreclosures, by David Monsour

Data from Realtytrac showed that the national average discount for a foreclosure sale vs a non-foreclosure sale is about 32%.  Prices on foreclosures have fallen and that coupled with the investors accepting lower offers have created a fantastic investor market for these properties.  If you have some cash there is an opportunity.

Pre-foreclosure sales (oftentimes short sales) made up 12% of all sales thus far in 2011.  The discount on those homes in some stage of foreclosure is 21% according to Realtytrac.   If you have time to wait for a response from the bank on a short sale these properties can represent a fantastic value.

With average price discounts anywhere from 21-32% distressed properties can represent some fantastic income opportunities whether it be to buy and rent until the market returns to to flip properties.

Many first time buyer would be interested in these properties if the properties were in good enough condition for most first time buyer loans (FHA, VA, USDA).

If you’re looking for a bargain in Gettysburg or Hanover, PA let me help you locate the “perfect” property.

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