Zillow crunches some numbers and finds that foreclosures nationwide sell at only a 7.7% discount. In some cities, there is no discount.
There was a time when you could save a lot of money buying a foreclosed home. Real-estate investors organized bus tours to scout out favorable foreclosure deals.
Just how much can you save? Today, only about 7.7%, according to a new study by the real-estate portal Zillow.
Zillow took issue with the methodology commonly used to compute foreclosure discounts: comparing the median sale price of foreclosures versus the median price of nonforeclosures. It noted that the pool of homes in foreclosure is not necessarily equal to the pool not in foreclosure.