Lower prices: One undeniable benefit is that foreclosed homes almost always cost less than other homes in the area. This is because they're priced by the lender, who can only make a profit (or get some or all of their money back) if the home gets sold.

Why do banks sell foreclosures so cheap?

Banks try to sell foreclosed homes as fast as possible. Thus, they put them on the real estate market for sale below market value! Another reason why foreclosed homes are cheap investment properties is that they are usually in a distressed situation, which lowers their market value in the real estate market.

Can you really buy foreclosures cheap?

You can likely purchase a foreclosed house at a major discount, fix it up, and then live in it or sell it for a tidy profit. But new research suggests it's getting harder to find foreclosure bargains. There just aren't as many on the market as there used to be.