Rismedia reported today that there are many foreclosures available on the market (so-called REOs or “real estate owned by lenders”) and many buyers in the market searching for bargains. Discounted offering prices on such properties vary from 5% to 30% below market prices (although occasionally there is no discount).
The purchase of such properties requires a buyer who can act quickly because the banks expect a rapid offer and there are often competing offers. The properties are often in poor shape, due to neglect or even vandalism, and are usually sold as is. It is therefore best if the buyers are prepared to do some of the work themselves or are good at dealing with contractors. Once the offer is accepted, the selling banks are often slow with processing the sale, so buyers have to be patient with delayed closings and paperwork.
These properties represent an opportunity for a bargain purchase for buyers who are knowledgable about pricing and prepared to devote time and money to improvements after closing.