Interest in buying foreclosed homes has dipped among average buyers, a survey by Trulia.com and RealtyTrac shows. But investors, homeowners looking to trade up and renters are more likely to think about buying a repo.
About 43 % of Americans say they’re at least somewhat likely to buy a foreclosure, down from 55% when that question was asked in May.
Hidden costs was the No. 1 reason cited for wariness toward buying a repo in the November survey, which was released this week, followed by risks and loss of value.
“Clearly, we have an increase in negative perceptions and less overall interest in foreclosures,” said Pete Flint, Trulia’s CEO.
But, he said: “Foreclosures are providing never before seen opportunities for new segments of homebuyers and allowing renters to become first time buyers, allowing investors to grab great deals and allowing families to trade up to larger homes. Until unemployment levels off and starts to get better, we expect foreclosures to continue to play a big role in the 2010 housing market.”
Among the findings:
Of those considering an investment property or second home, 92% are at least somewhat likely to buy a foreclosure.
57% of adults ages 18-34 are at least somewhat likely to consider buying a repo’d home, compared to a little less than a quarter of those age 55 and older (24%).
Current renters (57%) are more likely to consider buying a foreclosed home than current homeowners (38%).
1 in 2 U.S. adults who are single/never been married are at least somewhat likely to consider purchasing a foreclosure compared to 40% of adults who are married.
Rich Sharga, senior vice president of RealtyTrac, based in Irvine, said:
“It is somewhat surprising that consumers cite hidden costs as the biggest negative aspect to buying a foreclosed home because most bank-owned foreclosure sales include the same title protections and other safeguards that are in place for non-foreclosure sales. As myths such as this are put to rest and consumers take more time to educate themselves on the process for purchasing foreclosures, they will be able to take advantage of the great bargains that currently exist in the real estate market.”
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