Author: Fred A. Forgey, Ronald C. Rutherford, and Michael L. VanBuskirk

Start Page: 313
End Page: 318
Volume: 9
Issue Number: 3
Year: 1994
Publication: Journal of Real Estate Research

Abstract: Real estate professionals believe that foreclosed houses sell at a discount. This article empirically investigates whether foreclosed houses sell at a discount. A sample of 2,482 residential transactions in Arlington, Texas, is used in a hedonic pricing model to test this hypothesis. The results indicate that foreclosed properties sold at a 23% discount.