Wednesday
October 1, 2014

Are Foreclosures a Better Buy Than Short Sales?

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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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