SAN FRANCISCO – Homebuyers are souring on foreclosed properties, according to a survey released by California-based real estate data firms 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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