How To Save Money Investing In Foreclosure Homes

24 September 2007

Author: admin Posted under Foreclosure homes, Foreclosure listings

You can save a lot of money by investing in foreclosure homes and it is a rapidly growing market. Last year saw a rise in the number of foreclosure homes for sale all over the country and this year also experts believe that the rise in the numbers will continue. In Detroit, the average price of luxurious homes and condos sold through auctions was $79,900 and almost 92,000 homes went into foreclosure around July 2006.

The prices of bank foreclosures vary from $15,000 to $450,000 and include different types of properties like condominiums, single family homes, HUD homes, duplex homes, VA homes, etc. For example, a 900sqfeet foreclosed property in Georgetown, Colorado with 2 bedroom/1 bathroom is priced at $120,000. The market price of the same property is $180,000 and with the real estate appreciation, it will be $200,000 before the end of the year. So when you buy the property through foreclosure listings, you will end up saving almost $50,000 to $70,000.

Similarly in Auburn, New York, you can buy a 4 bedroom/2 bathroom foreclosed property for just $54,900 and its market price with the rate of appreciation is almost $200,000. So you can imagine the amount of money you can save on investing in foreclosed properties. One of the primary factors is that as an investor, you can buy the home, do some small repair work, paint it and give it a new look. Then keep it for sometime and as the real estate market price spirals, you can sell it to make a handsome profit. In fact more and more investors are doing this and it has become a fruitful business for many. There are more millionaires out there who have saved money buying foreclosure homes and then sold them to make profit.