Foreclosure homes often sell at a discount, with the average price of a property in some stage of foreclosure or bank-owned selling for 34 percent the average price of a non-distressed property in January.
But there are discounts and then there are discounts.
I recently took a look at how many foreclosure properties —pre-foreclosures, scheduled auctions or REOs — were listed for sale on RealtyTrac for $50,000 or less. I was somewhat surprised to find that more than 8,000 properties nationwide matched this criteria. Even more surprising that not all these properties were located in places like Detroit and Cleveland — although many of them were.
I found that there were foreclosure properties listed for sale for $50,000 in 48 states, and many states had hundreds of such properties available.
Here’s a list of the 15 states with the most foreclosure homes for sale under fifty grand.
Keep in mind, these are just properties with a listing price of $50,000 or below. I found another 20,000 scheduled foreclosure auctions with an opening bid of $50,000 or less. Of course, the opening bid can go up at the auction, but that still shows there are plenty of bargain-buying opportunities available.
On top of the properties listed for sale and those scheduled for foreclosure auction, there are also properties in every stage of the foreclosure process that are not yet listed for sale. Granted, these properties may be tougher to pursue and purchase, but that tougher path to purchase also means less competition from other buyers.
While these low-priced foreclosures represent great buying and investing opportunities, they also often come with a fair amount of rehab and repair work. If you’re purchasing one of these properties, you’ll want to make sure you have a thorough inspection done beforehand so you can budget for any fix-up costs.
A special note on purchasing at the foreclosure auction: an inspection of the property is usually not possible beforehand, so you are taking on a bigger risk by purchasing this way. In addition, the winning bidder at the auction will be responsible for evicting any homeowner or tenant still living in the property.
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