Buyer Interest Rises for Remote Bidding at Live Foreclosure Auctions
What is the top property acquisition method of distressed real estate investors following the COVID-19 pandemic? According to the new Q2 2020 Foreclosure Buyer Insights Report, 61% of buyers say it is online REO auctions.
“This is a large shift from a pre-pandemic survey, in which 29 percent of respondent prioritized online REO auctions,” said report author Daren Blomquist, Auction.com VP of Market Economics.
The Insights Report, based on two surveys sent to Auction.com buyers (one sent pre-pandemic and the other after the pandemic declaration), also shows that a growing majority of buyers have ranked rehabbing and reselling to owner-occupants as their preferred investing strategy.
“Most foreclosure buyers are small-volume investors purchasing fewer than five properties a year, and most are also selling directly to owner-occupants,” said Jason Allnutt, CEO, Auction.com. “This broad base of buyers is proving resilient even in the midst of market turmoil, leveraging the power of online auctions even as other sources of inventory are on the decline.”
The report also includes:
- Which buyer segments are most likely to increase property acquisitions in this market
- The rising share of buyers who expect retail home prices to flatline or decrease in 2020
- How much rehab-and-resell and hold-as-rental investors budget for rehab costs
- How many investors bought five or fewer properties in 2019
- What percentage of investors rank hold-as-rental as a preferred investing strategy
- And much more
Read the report. For more market research and analysis, visit Auction.com/InTheNews and follow Auction.com on LinkedIn.