Some Foreclosures are Selling for 60% Below Previously Appraised Value

Los Angeles -  How would you like to buy a home that was recently appraised at $402,000 for a measly $189,900 ?,  Well, that’s exactly what one couple from Eagle Rock, CA recently did.  Yes, it was a foreclosure and Yes, it needed some work after the previous renters left some cosmetic damage when they moved out, but the Thompson’s figure they just bought the deal of the century.  “We couldn’t really afford the size home that we needed for our family, but then this deal came up on a website and we showed up, placed a bid and here we are.” Said Bill Thompson. “It was just that easy.”

The Thompsons, like many others, leveraged the internet and its myriad of web sites providing foreclosure listings to help find and purchase a home for far less than market value.  Many web sites allow users to select a specific zip code or city and select specific search results in those areas that meet their needs in a home.  These homes are listed either in pre-foreclosure stages or after they have already been foreclosed upon and are Real Estate Owned (REO) by a bank or other lender.

Anyone can search for, locate and bid on a foreclosed home and typically a foreclosed home is sold for at least 15% - 40% below market value and in some cases the prices can even be reduced further to as much as 60% or more below previous market value.  Now finding a home that is available at foreclosure for half price is going to be the exception rather than the rule, but they are there for the diligent searcher who has the time to sift through hundreds of listed homes for sale.