The average foreclosed home sells for $182,489, according to RealtyTrac. But not all REOs come cheaper than other homes on the market: A bank-owned penthouse condo overlooking San Francisco’s Art District recently sold for $28 million, making it the priciest condo sale in the city’s history, MSNBC reports.
The condo was originally listed by Bank of America for $35 million. The bank picked up the deed for the home in lieu of foreclosure in July.
While the steep price tag is high for most average foreclosures or even other home sales for that matter, the bank’s asking price was still half of what the original owner — developer Victor MacFarlane — tried to get for the condo in 2008. Even after a price cut in 2009 to $49 million, MacFarlane still was not able to find a buyer for the condo.
The 20,000-square-foot penthouse features six bedrooms, seven baths and four half-baths, a full gym, a 13-seat movie theater, a waterfall in the foyer, and a 2,500-square-foot master bedroom.
REO properties in the Raleigh / Durham / Clayton are listing for and selling for the lower end of the normal Market value.
Does this mean you can buy an REO for 20 cents on the dollar? Not likely but 80 cents on the dollar is possible and still a very good deal. Especially if your a handy man.
REOs are sold “AS IS” so they do need some work.