As Foreclosure Inventory Soars, New Trulia Survey Data Reveals Consumer Sentiment About Purchasing Foreclosed Homes
Survey Finds Both Willingness and Reservations in Purchasing Foreclosures in Wake of Mortgage Crisis, with Hidden Costs the Top Concern Among Consumers
Trulia Experts Provide Tips for Successful Foreclosure Purchases
San Francisco CA, May 7, 2008–Trulia.com, the best place to start a real estate search, today released the results of a study conducted on their behalf by Harris Interactive ® showing that while more than half of all U.S. adults would consider purchasing a foreclosed home, over two-thirds also feel that there are several negative aspects of such purchases. The findings, part of a comprehensive survey of consumer attitudes about foreclosure, have been released in tandem with guidance from foreclosure experts from Trulia’s online community, who offer tips for avoiding potential pitfalls and successfully completing such purchases.
Trulia’s internal market intelligence further confirms that interest in purchasing a foreclosed home is rising rapidly among
Conducted over a three-day period in late April, the survey found that, while 69 percent of U.S. adults feel that there are negative aspects to purchasing a foreclosed home, more than half would be at least somewhat likely to consider purchasing a foreclosed home. Of survey respondents mentioning negative aspects of purchasing a foreclosed home, 69 percent cited hidden costs; 35 percent considered the prospect risky; and 33 percent mentioned the possibility of the home losing value.
“What’s striking about these findings is that while
To put foreclosure fears at rest, Trulia’s team of foreclosure experts has provided tips for anyone considering purchasing a foreclosed home. These include:
• Prioritize your needs: Make a list of “must-haves” for your new home. The foreclosed house you choose should have some overall appeal as well as most of the items on your list.
• Talk to experts: Make an appointment with an experienced foreclosure agent. Don’t be afraid to ask a lot of questions.
• Be current: Look at neighborhood data with emphasis on real time sales. Compare current and last year’s home values to determine which way the market is moving.
• Aim high: Find out the overall value of the neighborhood in which you are buying. A foreclosure may allow you entry into a better neighborhood.
• Make inspection mandatory: Minimize hidden costs by planning a professional inspection. Don’t be afraid to get a second opinion..
• Avoid pre-stage: The pre-foreclosure/short sales stage is typically not the most profitable. You could wait weeks or even months for an answer from the lender.
• Buy at the right time: The foreclosure stage can be profitable when it goes to public auction. The best REO deals are often situations where the home has been on the market for 60 days or more.
Some Groups More Inclined to Consider Purchase
The results of the Harris Interactive ® survey provide nuanced insight into the types of consumers more likely to consider the purchase of a foreclosed home. In particular:
• Single/never married adults (60 percent) are more likely to be at least somewhat likely to consider purchasing a foreclosure versus married (50 percent) or divorced/separated/widowed adults (50 percent).
• Male respondents are more likely to be at least somewhat likely to consider purchasing a foreclosed home compared with female respondents (57 percent versus 51 percent).
• Younger adults (18-34) are more than twice as likely to be at least somewhat likely to consider purchasing a foreclosed home than U.S. adults ages 55+ (69 percent versus 32 percent).
• Respondents with children in the household are more likely to be at least somewhat likely to consider purchasing a foreclosed home versus those who have no children in their household (66 percent versus 50 percent).
• About three out of every four U.S. adults aged 18-34 feel that there are negative aspects of purchasing a foreclosed home (74 percent) versus two-thirds (66 percent) of U.S. adults aged 35 and older.
• 20 percent of
Trulia is one of the most popular sites on the web for real estate and has approximately 3 million real estate listings across the country. Foreclosure tips provided by experts from the Trulia Voices online community: Bill Boone, Fabiola Fleuranvil, John Goad Jr., Tom J. Hall, Travis Houston, Patrick Mahoney, Melissa Morgan and Elizabeth Weintraub. For more information about Trulia or to experience the power of a Trulia search, please visit http://www.trulia.com/. Foreclosure listings on Trulia powered by RealtyTrac®.
This survey was conducted online within the
About Trulia, Inc.
Trulia, Inc. (http://www.trulia.com/), a residential real estate search engine and the fastest-growing
About Harris Interactive
Harris Interactive is a global leader in custom market research. With a long and rich history in multimodal research, powered by our science and technology, we assist clients in achieving business results. Harris Interactive serves clients globally through our North American, European and Asian offices and a network of independent market research firms. For more information, please visit www.harrisinteractive.com.
Ayanna Anderson for Trulia