In many cases, foreclosed properties epitomize the notion of “too good to be true.” The value proposition of a foreclosed home sold at a fraction of its market value dissipates quickly as homeowners discover the true extent of restoration costs. A new Trulia/Reality Trac survey, as chronicled by Alison Rice in her article for Builder Online, Americans Become More Wary of Buying a Foreclosed Home, finds that 81 percent of consumers believe there are downsides to purchasing a distressed property. Furthermore, an increasing number, 54 percent, acknowledge purchases of distressed properties as risky – up five percentage points from the last survey. This doesn’t mean builders can discard to threat to their business posed by foreclosures, however. Forty-nine percent were still “at least somewhat likely” to consider purchasing a distressed home, up four percentage points from the previous survey.
@NeilAndrewJames
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