How Much Cheaper (Less) Do Foreclosure Homes Actually Sell For Vs. Their Listed Price In Tucson? Here Are The Statistics.
February 2nd, 2009 by Michael Oliver
Everyone always asks:
“How much can you take off the listing price of a foreclosure home?”
“How much less will the bank take?”
Now to be honest on an individual home it’s an impossible thing to know how much less a bank will accept on their foreclosure home then it’s listed for. All sorts of variables exist such as days on market, if other buyers are interested, condition of home, competition of other bank owned homes in the area, and on and on. However I can give you some averages that should help when trying to negotiate on a foreclosure home here in the Tucson Arizona area.
On “average” (“Average” is a very popular used word that rarely means anything for your individual purchase.) but on average the actual sale price vs. the listed price of a foreclosure in Tucson is 11.5% and here are the Tucson foreclosure statistics to give you some more color on Tucson foreclosure homes statistics.
-As of right now here are the Tucson foreclosure home statistics:
-Average listed price (of foreclosure homes only) currently equals: $176,848
-Average size of a foreclosure home in Tucson is: 1697 square feet
-Currently there are 451 “Active” foreclosure listings on the Tucson market.
-Average Days on market for a foreclosure home in Tucson runs: 69 days
-Average listed foreclosure home at dollar per square foot equals: $104/sf
-Average SALE price of a Tucson foreclosure home is: $155,983
-Average dollar per square foot for a sold Tucson foreclosure home runs: $92/sf
This equals a solid 11.5% discount for foreclosure properties in Tucson versus their listed price.
So this percentage means that yes you as a buyer should be able to get a better deal then the listed price in most situations, however it for sure kills the myth that “I should be able to get 33% off of a foreclosure home”. Too many people have the wrong mindset when shopping what I like to call the “foreclosure home sale rack” yes deals are out there, and yes you should be able to negotiate a better deal. However keep in mind the absolute vast majority of foreclosure homes are listed at (or below) the current neighborhood comps. Banks price in most situations correctly and want to get their homes sold ASAP while a lot of individual sellers do the exact opposite and overprice their home relative to the market and “test the market”.
In the next coming weeks I will most likely break down the different sections of Tucson to help those buyers see that depending upon the area of town these “discounts” can range wildly. If you have a specific question about these numbers or would like some additional help with your purchase of a bank owned (foreclosure) home in the Tucson area use the form on the side of this blog to email me the question and I’ll get you a response ASAP.