SAN FRANCISCO – Homebuyers are souring on foreclosed properties, according to a survey released by California-based real estate data firms Trulia.com and RealtyTrac.
Only 47% of adults surveyed said they would consider purchasing a foreclosed property, down from 54% when the question was asked seven months ago. In addition, 80% said there were negative aspects to purchasing foreclosed homes, such as hidden costs, risk of the home losing value, and the personal nature of foreclosures. Back in April of 2008, only 69% reported these negative considerations.
Those who will bite expect a big discount, too. Seventy-five percent said they expected to pay at least 25% less than other homes in the neighborhood, with nearly one-third expecting to pick up the home for half price, or even cheaper.
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"Being that the sale of foreclosed properties has been on the rise due to the increased inventory and discounts available on foreclosed homes, it is somewhat counterintuitive — although not totally unexpected–that consumers are more hesitant to purchase a foreclosed property," said Rick Sharga, senior vice president of RealtyTrac.
Sharga added that despite the negative survey results, he expects foreclosures will continue to dominate the 2009 market
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