Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Economic News

Is the Buyer Pool Shrinking For Foreclosure Properties?

Foreclosure scene is changing

foreclosureToday, a new Harris Interactive poll shows the percentage of buyers at least “somewhat likely” to consider buying a foreclosed property fell from 55% in May to 43% in November. Is this a sign that the buyer pool is shrinking for foreclosure properties?

On top of the news of an overall waning willingness to purchase foreclosures, buyers’ expectations are changing. 65% of those surveyed expect at least a 30% discount when purchasing a foreclosure home.

“That’s actually a realistic expectation, according to the latest foreclosure sales data analyzed by RealtyTrac, which shows that in the third quarter foreclosure properties sold for an average of 33 percent below non-foreclosure properties,” said RealtyTrac spokesperson Daren Blomquist. Interestingly enough, the survey showed that residents expect higher price cuts in states like Florida and Nevada who expect a 50% discount.

The last survey, completed in May, showed that 85% of saw negative aspects of buying a foreclosure, but this month’s data reveals a 4% drop meaning only 81% see negative aspects to the purchase. The buyer pool makeup is changing also, with 92% of move-up or second home buyers saying they’ll at least somewhat likely to buy a foreclosed property, despite the sentiment overall against foreclosures.

REOs and Short Sales are growing specialties in the real estate profession and we will likely see more agents jump on board as perception and actions change over time as the stigma of foreclosure properties shifts.

Advertisement. Scroll to continue reading.

Lani is the COO and News Director at The American Genius, has co-authored a book, co-founded BASHH, Austin Digital Jobs, Remote Digital Jobs, and is a seasoned business writer and editorialist with a penchant for the irreverent.

15 Comments

15 Comments

  1. Susie Buzvin

    December 16, 2009 at 4:57 am

    you have to know the agent of the foreclosed property so that you can be sure that you are investing on a real property.

  2. RealEstate Babble

    December 16, 2009 at 5:10 am

    AgentGenius: Is the Buyer Pool Shrinking For Foreclosured Properties? https://bit.ly/7gbuBs Full https://bit.ly/8oURkO

  3. kristin terry

    December 16, 2009 at 5:50 am

    Is the Buyer Pool Shrinking For Foreclosure Properties?: Foreclosure scene is changing Today, a new Harris Inte.. https://bit.ly/79t1eu

  4. Mike

    December 16, 2009 at 6:36 am

    Here in Northern Virginia, we have the buyer pool to absorb the REO’s. Most of the REO’s I list, (and it’s down to a trickle currently) get many offers. I have an investor team that is looking for physically distressed properties to fix and flip, but the inventory isn’t there. The few that exist get 10 or more cash offers. I think FHA and VA buyers are turned off to the REO’s because they are tired of getting turned down, due to the Conventional and Cash buyers squeezing them out. If there is a “shadow inventory”, the banks need to get them listed. Current Loudoun County inventory is 1/3 of what it was in November 2007.

  5. Real Estate Feeds

    December 16, 2009 at 8:46 am

    Is the Buyer Pool Shrinking For Foreclosured Properties?: Foreclosure scene is changing
    Today, a new Harris Interac… https://bit.ly/56m585

  6. Pat Hallesy

    December 16, 2009 at 11:58 am

    @agentgenius Is the Buyer Pool Shrinking For Foreclosure Properties? https://bit.ly/6kh338

  7. Realty Infusion

    December 16, 2009 at 2:56 pm

    Is the Buyer Pool Shrinking for Foreclosed Properties? https://bit.ly/6Xhm5b

  8. Investors Rock!

    December 16, 2009 at 7:35 pm

    Is the Buyer Pool Shrinking For Foreclosure Properties? What do you think? https://bit.ly/6WWgTB

  9. Carolyn Gjerde

    December 16, 2009 at 10:10 pm

    I’m not convinced the buyer pool for foreclosures is shrinking. Foreclosed properties still tend to be the market in most of my region but maybe it has to do more with price range. Often the only homes many first time homebuyers can afford are foreclosures. Move up buyers may have more choices but if the foreclosed home is discounted enough is still selling more quickly than non distressed homes.

  10. Irina Mitkevich

    December 17, 2009 at 5:58 pm

    Indianapolis IN Real Estate market seems showing exactly the opposite trend. During the last 10 months the number of foreclosed homes has shrunk. Buyers are looking for bargains and agents are not meeting their expectations because not been able to find good deals. If a foreclosed property priced below market value comes on the market, within a week there are multiple offers submitted, often higher then an asking price. I am curious to see if the phenomena is happening in any other major metropolitan areas.

  11. Eco St Joseph Statue

    December 17, 2009 at 6:09 pm

    Is the Buyer Pool Shrinking For Foreclosure Properties? https://bit.ly/72Py0y

  12. Joe Spake

    December 18, 2009 at 4:59 am

    Is the Buyer Pool Shrinking For Foreclosure Properties? https://bit.ly/8EZjpX

  13. Alex Romero

    December 18, 2009 at 8:31 am

    Is Buyer Pool Shrinking 4 4closures? https://bit.ly/5tQFt5

Leave a Reply

Your email address will not be published.

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Housing News

(Housing News) It has become a popular notion that a home bought at a tax sale is a steal, but it is not so...

Housing News

(Housing News) Fannie Mae is offering incentives on foreclosures, and while many homeowners are unaware, many agents are as well - time to take...

Housing News

(Housing News) Foreclosure activity shot up in January, driven in part by a sharp increase in post-holiday foreclosure starts.

Housing News

(Housing News) Foreclosures have been a sore spot for the housing market, but 2013 was a turnaround year, with levels dipping dramatically.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.