The 10 Best Cities To Buy Bank-Owned Properties

Chicago

Photo: Michael Baird via Flickr

One in every four homes sold in the fourth quarter of 2011 was a foreclosed property. Some of the best deals for buyers in the foreclosure market are real estate owned (REO) properties. These properties are taken over by banks after unsuccessful sales at foreclosure auctions.

We drew on RealtyTrac data to put together a quick guide of the 10 metropolitan areas where homebuyers are getting the best deals on REO sales.

The metro areas are ranked by the size of the discount offered by REOs relative to homes sold under normal conditions.

Note: The data is for metro areas with at least 500 REO sales during the fourth quarter.

Minneapolis-St. Paul-Bloomington

Average discount:
31.01%

Average sales price:
$139,642

REO sales:
1,882 units

Source: RealtyTrac

Nashville-Davidson--Murfreesboro--Franklin

Average discount:
38.71%

Average sales price:
$124,384

REO sales:
864 units

Source: RealtyTrac

Seattle-Tacoma-Bellevue

Average discount:
40.27%

Average sales price:
$193,993

REO sales:
2,445 units

Source: RealtyTrac

Cincinnati-Middletown

Average discount:
42.43%

Average sales price:
$81,065

REO sales:
623 units

Source: RealtyTrac

Des Moines-West Des Moines

Average discount:
46.36%

Average sales price:
$88,393

REO sales:
543 units

Source: RealtyTrac

Atlanta-Sandy Springs-Marietta

Average discount:
48.12%

Average sales price:
$95,321

REO sales:
6,458 units

Source: RealtyTrac

Chicago-Naperville-Joliet

Average discount:
49.71%

Average sales price:
$118,278

REO sales:
4,938 units

Source: RealtyTrac

Boston-Cambridge-Quincy

Average discount:
50.92%

Average sales price:
$181,149

REO sales:
853 units

Source: RealtyTrac

Philadelphia-Camden-Wilmington

Average discount:
52.51%

Average sales price:
$109,878

REO sales:
1,010 units

Source: RealtyTrac

Milwaukee-Waukesha-West Allis

Average discount:
57.90%

Average sales price:
$77,592

REO sales:
538 units

Source: RealtyTrac

Now look at countries where home prices aren't cheap...

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.