Buyers Increasingly Suspicious of Foreclosures

Fewer buyers are willing to consider purchasing foreclosed property than they were seven months ago, according to a study commissioned by Trulia.com and RealtyTrac.

Seven months ago, 54 percent of adults surveyed said they would consider purchasing a foreclosed home. In November, only 47 percent of adults say they’d buy a foreclosure.

The chief turnoff is perceived risk, with 80 percent of those surveyed citing hidden repair costs, a tricky buying process, and the possibility that the neighborhood will lose more value and drag the property down with it.

To compensate for these risks, 75 percent say they expect at least a 25 percent discount and 30 percent say they would only buy if there is a 50 percent discount compared with a comparable home that isn’t in foreclosure.

Other findings:

* 56 percent of single/never married adults were at least somewhat likely to consider purchasing a foreclosed home, down from 60 percent in April.
* 43 percent of married adults were at least somewhat likely to consider purchasing a foreclosed home, down from 50 percent in April.
* 42 percent of divorced/separated/widowed adults were at least somewhat likely to consider purchasing a foreclosed home, down from 50 percent from April.

Source: Trulia.com

Author: niaknowles

Real Estate Broker, Christian Yogi, Mother of three

2 thoughts on “Buyers Increasingly Suspicious of Foreclosures”

  1. Interesting post. I agree with you. But, in my area (Columbus, Ohio) lot of Buyers are taking the risk because we are able to get incredible final sales prices.

  2. Yes, the same in Atlanta- which is why I was surprised to read that article. I am noticing a change…many of the investors are buying our foreclosures for cash, and flipping them. A lot of owner occupant buyers are taking this route and buying from investors- they still get a home for much lower than it would have sold for a few years ago, and they don’t have to deal with repairs so they can get a regular FHA loan over a 203K

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s