People always ask, "how much should I offer on a Virginia Beach Foreclosure"? Well...the truth is, that's not always a simple answer. And...the answer I'm sure is going to surprise most people that are new to the Virginia Beach Foreclosure market. 
Let's first examine the recent sales statistics of our local market. At this date 1-23-11 in the Hampton Roads MLS REIN (stands for Real Estate Information Network) the market has a total of 40 active listings of Virginia Beach Foreclosures. That is a healthy inventory of foreclosed homes!
Now to get an idea of how fast the market is moving, let us look at the number of foreclosed homes that actually when under contract (sold) in the last 30 days. That number today is 8. That's not a bad number of sales for a down market!?
Okay...so we've concluded that we have a good amount of inventory and a strong number of sales...let's see how fast this inventory is replenishing itself? So after looking at the data we have determined that in the last 30 days we have had 9 new listings of Virginia Beach Foreclosures come on the market! Looks like a stable market to me.
So if we do a little simple math that translates into a 5 month supply of Virginia Beach Foreclosureson the market. Meaning it would take 5 months at this current absorption rate to sell all of the Virginia Beach Foreclosures on the market today! To give you a little historical comparison...in 2005 at the height of the market we had typically a less than 30 day supply of homes on the market any given month. And...in some neighborhoods (micro markets) a less than 14 day supply of homes on the market! But that was then and this is now! Historically a "normal" market...which by the way is probably an anomaly...should have about a 3-4 months supply of homes on the market in any given month.
Now we know what our supply number of Virginia Beach Foreclosures is...let's take a look at the List to Sale Price Ratio. Out of the 64 Virginia Beach Foreclosed homes that have sold in the last year, when you compare what their List Prices were when they went under contract to the actual closed sale price we get a ratio of 96%. That means that on average Virginia Beach Foreclosures are selling for 96% of their asking price!
Now I am sure your asking..."how could this be"? "I thought foreclosures were deals". Well...they actually are! The graph above shows that these homes are selling at a discount, but the key factor to realize is that the discount is already in the price! I know this goes against conventional "let's make a deal" mindset...but...the numbers do not lie!
You see the banks are smart...they send out 2-3 agents and 1-2 appraisers to evaluate the properties 
condition, value and location long before they put the homes on the market. They know going in what it takes to attract a buyer and at what price. Therefore, that is how they price their inventory...aggressive! They want it to sell, not sit on the market. That is why the graph below shows that distressed properties in the MLS (REIN) are selling at a big discount compared to resale equity seller homes that are not distressed situations. And for more verification...that is why the List Price to Sale Price Ration for Virginia Beach Foreclosures is so high! They list them at prices that will attract buyers and cause them to sell.
In conclusion, Virginia Beach Foreclosures do represent the opportunity to get a good deal, but the key to getting the right house for the right price is to take your time, learn and understand the market for these homes and work with an agent that knows the market!
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