Everyone has heard about the national foreclosures and everyone naturally wants the best deal possible. Purchasing a home for less than it cost new sounds like a great deal but it is not always so. The more and more buyers are looking at foreclosures, the less and less they like them. Keep in mind that there is a real good chance the previous owner did not keep the home well maintained (due to financial restraints) and many damaged the homes upon exit.
Why didn't the home sell at "market value"? Has the neighborhood value declined? What updates/repairs are required to bring the property back up to market value? The TV shows that are some minor paint and carpeting makes for a nice entertainment TV but you can not believe what you see on TV.
Yes, there are some great deals out there but do not expect a great home, in a great Charlotte neighborhood to sell for 50% off. If a home is in such a neighborhood, you may get a 20% off discount. Yes, that is still a great deal but you need to be able to realize a great deal when you see one. There are many "wanna be" investors that think a lender will take 50% of the already discounted price. This is just silly. The banks have a recent market analysis performed before listing the home. The bank then already discounts the home prior to listing it. Yes there may be something wrong that the appraiser missed such as a foundation issue, mold, a defective roof or something else major. IF that occurs, the bank will discount the home according to the required repairs. They still are not giving the home away at 50% off.
I love to find great deals! There are great deals out there. Keep your mind open to foreclosures and resales. The resale values have also been depressed and these are often better deals than the foreclosures. Keep your mind open and let's find that perfect home!