RealtyTrac’s latest quarterly results show that foreclosure properties sell for approximately 26% less than other homes. The results have also revealed the states with high foreclosure rates and sales discounts on distressed homes. For example, in Nevada the percentage of foreclosure sales has finally dropped from 65% to 56%.
Distressed home sales include the sale of homes that are scheduled to be auctioned, are in default, or are real-estate-owned. According to RealtyTrac, approximately 248,000 homes were sold between April and June 2010.
That’s a 5% jump when compared to the previous quarter, and non-distressed sales went up even more during the most recent quarter. Most are giving credit to the federal housing tax credit for growth seen in the industry.
However, prices are still taking a hit due to the downward pressure on pricing exerted by current market volume. Foreclosure sales are earning 26% less than others non-distressed properties and appraisals are coming in as much as 35% under the appraisals for non-foreclosure properties.Foreclosed homes often show signs of distress. Homeowners may stop taking care of the home once they get behind on payments. If the home owners are selling, they may do minor improvements to increase the value while banks will be less personal and detail oriented towards selling the home.