Many buyers are excited to consider purchasing a bank owned foreclosure (or REO) property.
Many of these properties are great deals, regardless of the condition, for the more experienced investors. Some may require a bit of work (usually a good 203 loan property).
There was a recent foreclosure my buyers were interested in: great subdivision, priced at $125K, for 3 bedroom, 2 bathroom with about 1655 square feet.
The biggest detriment? It had no kitchen. No cabinets, no counters, no appliances at all. In my buyers' mind, this was perfect, a blank slate to start from.
Many buyers are also tempted to offer less than listing price, thinking that no buyers will offer full price or better. That is a dangerous way to think. It's important to have your Realtor check for foreclosures in the area in similar condition to see what they sold for in order to prepare a proper offer if you really want the house.
This home was priced to generate multiple offers, which it did.
SO, how much did it sell for?
Listed at $124,900, and 18 days later, under contract to a cash buyer for $146,500.
If you want to purchase a foreclosure, you need to do your homework first!