Even though distressed properties purchased at auction typically sell for 30 percent to 40 percent below their after-repair value, owner-occupant homebuyers are purchasing only a modicum of these affordable homes.
“Most owner-occupants don’t have the inclination to do tons of renovations,” said Laurie Goodman, the Urban Institute Housing Finance Policy Center Founder. “They don’t have the expertise to actually evaluate how much those renovations could cost. And even if they did, they can’t get the financing to actually do the renovations.”
In the first of a two-part series, Goodman discusses Urban Institute’s recent research that tries to answer why so few owner-occupants buy affordable properties at auction.
Watch Part 2: What Are Ways to Increase Owner-Occupancy Purchases at Auction? (Part 2) – Auction.com