Foreclosure Discounts Tracked

The online foreclosure giant, RealtyTrac, has found a way to track the average discount on foreclosures. Nationally, the average discount is 34% for a foreclosure as compared to the prices of sold homes that are not in foreclosure.

RealtyTrac calculates its average discount by comparing the percentage difference between the average sales price of homes not in foreclosure to the average sales price of foreclosure homes. The numbers would be a bit skewed if most of the homes that were not in foreclosure were upper-end homes.

Using this formula, RealtyTrac shows the average discount of foreclosure homes in California, for example, is 44%; New York is 51%. Short sales accounted for almost 12% of all home sales.

More Articles by Elizabeth Weintraub:

• How to Make a Short Sale Offer
  
• Buying Foreclosure Homes From an Investor
  
• Why You Can't Buy That Bank Repo

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_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.}