Interest in buying foreclosure properties down - survey

The survey conducted on behalf of trulia.com and RealtyTrac by Harris Interactive between November 5-9, 2009, shows that 43% of U.S. adults are at least somewhat likely to consider purchasing a foreclosed home in the future. This figure is down from 55% that considered this an option in a survey conducted between May 1-5, 2009.

Homebuyers worry about hidden cost in foreclosure properties

The hesitance in considering a foreclosed property stems from homebuyers feeling that there are hidden costs that could come up after such a purchase, 48% also believed that the foreclosure process is too risky.

Rick Sharga, senior vice  president of RealtyTrac said, “It is somewhat surprising that consumers cite  hidden costs as the biggest negative aspect to buying a foreclosed home because  most sales include the same title protections and other safeguards  that are in place for non-foreclosure sales."

Investors, trade up homebuyers and renters interested in foreclosure properties

However, the survey also found that there is strong interest in certain segments, including real estate investors, current home owners looking to “trade up” to a larger property and renters looking to buy.

92% of real estate investors are interested in buying foreclosure properties, while 88% of those looking to trade up on their homes are interested, as well. 57% of all renters looking to buy into a home are interested in foreclosure properties.

Homebuyers looking for discounts in foreclosure properties

Homebuyers expect a sizable discount when considering buying a foreclosed property. Nearly 2 in 3 U.S. adults (65%)  expect a discount of 30% or more when buying a foreclosed property and in the Northeast, homebuyers expected the biggest discounts, with 43%  expecting foreclosed homes to be discounted by 50% or more.