How much can I save buying a foreclosure?
Each opportunity varies. Current research shows that 70% of preforeclosure and auction amounts are discounted an average of 19%, and 31% of preforeclosure and auction amounts are discounted 30% or more by the lender.
Does that translate to 101% of the auction amounts being available on the market?
Nope, in this case the 31% is part of the 70%. Put another way - if you have 5 pieces of fruit and 2 are apples, you don’t have 7 of anything.
So what you are really saying that 31% of the 70% are discounted by 30% from the original price or from the 19% discount?
I can see how this could be confusing as originally stated. Let’s try it this way:
- 70% of ALL are discounted
- Of the 70% that were discounted the average discount? is 19%
- 31% of ALL are discounted by 30% or more – leaving 39% that were discounted, but by less than 30%, and these were included in calculating the 19% in 2 above.
Hopefully that isn’t even more confusing.