Let’s Expand Homeownership Together
In an era where affordable homeownership and neighborhood stabilization are more critical than ever, Auction.com and its buyers are driving positive change. Local community developers who renovate and resell to owner-occupants, along with owner-occupant buyers who purchase directly on Auction.com, are crucial links between distressed properties and successful homeownership, creating a path for stability and growth in our communities.
Auction.com has always been at the forefront of initiatives that support homeownership. Its Market Validation Program provides a responsible alternative to foreclosure, and the First Look program makes single-family homes more accessible to owner-occupants, thereby strengthening neighborhoods.
According to recent Auction.com data, about 13% of respondents were owner-occupant buyers in 2023, up from 8% in 2022. What’s more:
- 68% of renovated properties resold by Auction.com buyers in 2023 went to owner-occupants
- 20% of bank-owned properties sold on Auction.com went directly to owner-occupant buyers in 2023, up from 15% in 2022 and 12% in 2021
- Since 2021, more than 100,000 distressed properties purchased on Auction.com have been renovated and returned to the retail market as affordable, owner-occupied housing, and more than $2 billion in surplus funds for distressed homeowners have been uncovered by our transparent, competitive platform
The Rise of Local Community Developers: Connecting with Today’s Buyers
Local community developers support the bridge from distressed to owner-occupant homeownership. Many of Auction.com’s buyers call themselves local community developers (78%) or owner-occupants (13%). These dedicated individuals invest in distressed properties near where they live, demonstrating their commitment to positive neighborhood impact. They purchase locally, care deeply about their communities, and play a pivotal role in stabilizing and developing neighborhoods.
Neighborhood Stabilization: Making Homeownership Accessible
Auction.com buyers desire to improve neighborhoods, create jobs, expand homeownership, and provide affordable housing. According to a recent survey, more than 80% of Auction.com buyers rank one of these motivations among their top three reasons for investing in distressed properties.
Local community developer Austin from Louisiana said, “I typically buy blighted or neglected properties in residential areas. Oftentimes my renovations provide jobs for my tradesmen and contractors, beautify neighborhoods, and create more reasonably priced housing options.” This sentiment is echoed by many buyers who prioritize community well-being and strive to make homeownership more accessible.
Accelerating the Transition to Homeownership
Compared to traditional sales, foreclosure and REO auctions often expedite the process of getting homes into the hands of owner-occupants. Key factors include competitive bidding, quick rehabilitation, and efficient local resources. Auction.com’s mission is clear: “We create better outcomes for neighborhoods, buyers, and sellers through transparency, technology, and care.”
Adding Value Through Renovations
Local community developers understand the importance of affordable homes, especially in low-income neighborhoods. To achieve this, 73% of Auction.com buyers reselling to owner-occupants invest over $20,000 in renovation and holding costs. By renovating and reselling properties to owner-occupants, these buyers enhance home values, contribute to neighborhood stability, and support the local economy.
Auction.com local community developer Janine from Pennsylvania said, “Our goal is to be able to renovate to a standard that we would be comfortable living in. It gives quality and character back to the neighborhoods and a solid house at a reasonable price for many first-time homebuyers.”
Economic Impact: Supporting Jobs and Local Economies
Investing in distressed properties also boosts job creation. About 63% of buyers report creating at least three local jobs through their investments. Auction.com buyer Jeffrey from Massachusetts praises being able to create jobs for people in the construction field while producing inventory for Realtors. “Our end product is a turnkey home with no worries for a new homeowner,” he said.
Facilitating Affordable Homeownership
A 2022 study by the Urban Institute and Auction.com explored the accessibility of affordable homes through distressed sales. Although distressed properties are an excellent entry point for owner-occupants, many require renovations that potential buyers may not undertake. Local community developers bridge this gap by purchasing, renovating, and reselling these properties at affordable prices.
An analysis of resales shows that renovated foreclosures sell at a price point requiring just 25% of the median family income in the surrounding neighborhood. Even when not resold to owner-occupants, these renovated properties provide quality, affordable housing for renters, with average rents requiring 23% of the local family income.
Local Buyers, Big Impact
Auction.com buyers, particularly local community developers, typically purchase a limited number of properties annually (96% buy 10 or fewer). This approach allows them to invest time and care into their properties and communities.
Local community developer Jennifer from New Jersey said, “We have purchased two homes in the township now, both bank-owned properties that we fixed up and turned into beautiful homes in our township. It feels so good to help bring these houses back to life.”
From Distress to Success: The Outlook on Expanding Homeownership
Auction.com is dedicated to optimizing homeownership rates for distressed property dispositions. Analysis of more than 188,000 sales on Auction.com since 2018 reveals that 73% of renovated properties resold on the retail market were owner-occupied. These numbers highlight the effectiveness of Auction.com’s local community developers in helping families achieve homeownership.
The Passion Behind the Purpose
A passion for making a difference drives local community developers. Steve Johnson from Tennessee, an Auction.com buyer, said, “I grew up in a rental home. We never owned the home we lived in, so being able to own my home and help others own homes is a passion of mine.”
According to the 2024 Buyer Insights Report, 88% of Auction.com occupied property buyers offer some form of graceful exit for current occupants, including covering relocation costs, offering lease-back options, or providing buy-back opportunities. These developers prioritize community well-being and strive to provide high-quality, affordable housing without driving up property values, especially in low-income areas.
A Win-Win-Win Scenario
Auction.com and its buyers, especially local community developers, lead the way in expanding homeownership and stabilizing neighborhoods. Their commitment to community well-being, responsible renovation practices, and affordable housing creates a win-win-win scenario: servicers sell properties, owner-occupants find compassionate transitions into their new homes, and communities undergo positive transformations, one property at a time. Along with Auction.com’s transparent, competitive marketplace and its buyers renovating homes, together they are revitalizing lives and communities.