New Report: 56% of Foreclosure Sales Owner-Occupied a Year Later
Auction.com, the nation’s largest distressed real estate marketplace, released its Q2 2019 Seller Strategy report on September 3. The report provides data-driven insights for several key disposition metrics, including time to sell, sales execution and neighborhood stabilization.
The study examined various disposition strategies used during the last year for more than 23,000 properties that went to foreclosure auction in the second quarter of 2018 via the Auction.com platform. The platform accounts for nearly 50 percent of all properties sold at foreclosure auction nationwide.
“By synthesizing the rich transactional data from our market-leading platform with public record and MLS data, we’re able to provide a holistic view of the disposition metrics that matter to distressed property sellers,” said Auction.com CEO Jason Allnutt. “At the top of that list are execution of the sale price relative to credit bid, time to sell a property and impact on the surrounding neighborhood.”
The primary disposition strategies analyzed were third-party sales at foreclosure auction, along with two types of disposition strategies for properties that reverted back to the foreclosing lender at the foreclosure auction (REO): online auction via a “Day 1 REO program” and traditional REO sales via the Multiple Listing Service (MLS).
Among the major findings included in the report:
- Properties sold via “Day 1” REO online auction sold on average 95 days faster than REOs sold via the MLS.
- Properties sold to third parties at foreclosure auction executed higher relative to credit bid at the foreclosure sale than properties sold as REO—both MLS and Day 1 REO sales.
- 56% percent of properties sold to third parties at foreclosure auction were owner-occupied one year after the foreclosure auction date, compared to 43 percent of properties that reverted to the lender (REO) at foreclosure auction.
- Properties in Opportunity Zones that sold to third-party buyers at foreclosure auction executed 5 percentage points higher relative to reserve than properties located outside of Opportunity Zones.
The full report is available upon request.
Auction.com is the nation’s largest online real estate transaction marketplace focused exclusively on the sale of bank-owned and foreclosure properties. It is headquartered in Irvine, California, with offices in Silicon Valley, California, and Plano, Texas. Investors include CapitalG (formerly Google Capital) and Stone Point Capital.
