Are today’s foreclosures really the real estate bargains everyone thinks they are?
Now we can find out.
Realty Trac has a discount-to-value feature which can show us how foreclosure prices are measuring up across the country.
This tool gives us the average prices foreclosed homes sold for in any market. That is compared to estimated prices they were supposed to have sold for.
In other words, now we can accurately know how much discount on foreclosures we can expect in any market across the country.
I can’t stress how valuable this ingenious foreclosure tool is for our [tag-tec]due diligence[/tag-tec]. It just got a whole lot easier and more reliable.
You can check foreclosure discount-to-market ratios by state to get a clear picture of where the best deals are.
For example, most increases in [tag-self]foreclosures[/tag-self] are in California, Nevada, Michigan, Massachusetts and Arizona. Of course we already knew that.
Here’s where it gets interesting …
California had the most foreclosures and we would think that’s the best discount market, right? Wrong.
The discounts are small in California. Maybe the deals aren’t so good there after all.
RISMedia has an excellent article by Jennifer Openshaw which explains in more detail.