Foreclosed homes are often sold at a discount due to the risks associated with buying them. Banks and lenders are usually the ones selling these properties, and they are motivated to do so quickly in order to recoup their losses. As a result, they can competitively price REO properties to attract buyers. In addition, banks may be more willing to negotiate the price, especially if the property has been on the market for a while.
Finally, some of the offers might have been too high to be backed up by an appraisal, so the bank will generally lower the price to match the amount of the buyer's appraisal. Investing in foreclosures can be a great way to get a good deal on a property, but it is important to understand how foreclosure works and what the pros and cons of buying a foreclosure are. To help you decide how to proceed, check out this video which outlines 9 different ways to find foreclosures.
