Are foreclosures as good as people say they are?

There is no true answer to this question. The reason for this has to do with A) how the price is determined and B) How offers are dealt with by the lending institution. The price is usually determined by 2 individuals; a Realtor and an Appraiser. First, the bank will choose between the two prices given by the Realtor and Appraiser to determine an asking price. Since the Realtor and Appraiser have done their due diligence to determine the fair market value there is rarely any immediate “discount” in price. Second, the bank must prove they have tried to receive the most money possible for the subject property. For Example: If a Bank Sale is priced at $200,000 and you offer $150,000. You will probably receive a counter offer from the bank at about $198,000 AND you may not get this counter offer for 4-5 business days. By this time someone else could have placed a higher more appealing offer. This makes the likelihood of having a lower offer accepted very slim. Bank sales can be very time consuming and stressful.
You can still get a good deal and make a very profitable purchase on a Bank Sale but it does not happen as frequently as most people would assume. The most appealing benefit to the foreclosure market is usually the condition of the dwellings themselves. Most of them are tired, dirty and do not show well. For someone who is ambitious and willing to take on a project they can usually update, freshen-up and add value to these homes within a short time frame.