Subscribe via RSS Feed Connect with me on LinkedIn

Tag: "discount"

Short Sale Discounts Growing

The discounts that banks and lenders are taking on short sales is rising. At least that is what the latest data from the LPS Home Price Index seems to indicate.

Since April 2007, when short sale discounts averaged only 10% while bank owned foreclosures sold for 19 percent discounts, the short sale discounts have jumped to 23% while foreclosures are now selling for a 29% discount.

These numbers are nationwide averages so it will be necessary to research your local markets. However, it appears that short sales have become a more rewarding target for both investors and retail buyers. The difference in discounts can often be easily outweighed by higher repair costs on foreclosed properties who are frequently vacant for an extended time or even vandalized, while short sale properties may be found in much better condition.

Where do you  find the best deals in your local market? Leave a comment below!