{"id":186047,"date":"2025-12-10T11:54:05","date_gmt":"2025-12-10T18:54:05","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=186047"},"modified":"2025-12-10T11:54:54","modified_gmt":"2025-12-10T18:54:54","slug":"foreclosure-market-q3-2025","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/foreclosure-market-q3-2025","title":{"rendered":"More Deals, Lower Pricing\u2014A Look at What’s Going On at Foreclosure Auctions in Late 2025"},"content":{"rendered":"\n

Foreclosure auctions rose while buyer demand and pricing cooled in Q3 2025. Below, we’ll take a look at six key charts and buyer quotes to get a sense of today’s foreclosure market, what’s going on at auction, and extra tidbits to help guide your next bid.<\/span><\/p>\n\n\n\n

Foreclosure auction volume increased while pricing softened in Q3 2025, according to the latest <\/span>Auction Market Dispatch<\/span><\/a>, published by Auction.com. <\/span>That combo <\/span>is creating<\/span> more <\/span>chances<\/span> to buy\u2014if you underwrite conservatively and stay selective.<\/span> Here are six must-see charts and <\/span>auction buyer insights<\/span>.<\/span><\/p>\n\n\n\n

What Changed For Investors This Quarter?<\/span><\/h2>\n\n\n\n

Distressed supply continued to climb, led by foreclosure completions and scheduled auctions, while demand metrics (sales rates and bidders per asset) cooled. Investors report shifting to lower bids and longer hold timelines as costs and uncertainty rise.<\/span><\/p>\n\n\n\n

\u201cThe primary concern is the growing number of houses for sale \u2026 This creates a buyers\u2019 market; therefore, you can expect to sell a property for less than you would have a year ago.\u201d<\/span><\/em> \u2014 Arkansas buyer<\/span><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Takeaway<\/span><\/h3>\n\n\n\n

More <\/span>foreclosure inventory<\/span><\/a> with more conservative bidding favors disciplined offers.<\/span><\/p>\n\n\n\n

Where Demand Cooled\u2014and Why That Helps Disciplined Buyers<\/span><\/h2>\n\n\n\n

Sales-rate pressure and fewer bidders per asset mean less competition at the margin. Many buyers cite falling prices and policy uncertainty, so they\u2019re trimming offers to protect their margin.<\/span><\/p>\n\n\n\n

\u201cOverall, expectation [is that] housing prices are falling and will continue to fall.\u201d<\/span><\/em> \u2014 Indiana buyer<\/span><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Takeaway<\/span><\/h3>\n\n\n\n

If you keep <\/span>comps current<\/span><\/a> and cap rehab risk, you can win without overpaying.<\/span><\/p>\n\n\n\n

What Buyers Actually Paid vs. Value (by Market)<\/span><\/h2>\n\n\n\n

Price-to-after-repair value (ARV) ratios moved lower in several metros, reflecting tighter underwriting and higher perceived risk. That creates pockets where spreads are opening for buy-and-hold and value-add investors.<\/span><\/p>\n\n\n\n

\u201cI am buying more to hold and rent than I was before (when) I was buying to flip and sell.\u201d <\/span><\/em>\u2014 Minnesota buyer<\/span><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Takeaway<\/span><\/h3>\n\n\n\n

Favor metros where <\/span>price-to-ARV<\/span><\/a> is trending down and rents still penci<\/span>l.<\/span><\/p>\n\n\n\n

Where Supply Is Building (by State)<\/span><\/h2>\n\n\n\n

Foreclosure auction volume rose across several large states. A bigger pipeline means more looks each week and less pressure to chase borderline deals.<\/span><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Takeaway<\/span><\/h3>\n\n\n\n

Work statewide lists; set <\/span>saved searches<\/span><\/a> for areas showing the <\/span>biggest<\/span> year-over-year gains.<\/span><\/p>\n\n\n\n

Vacant REO Is Back in Play\u2014Why Occupancy Status Matters<\/span><\/h2>\n\n\n\n

The number of vacant REO auctions is at a multiyear high. Investors often prefer vacant assets to avoid eviction delays and carrying costs. And vacant REOs represent a largely untapped affordable housing opportunity for owner-occupant buyers.<\/span><\/p>\n\n\n\n

\u201cOccupied versus vacant properties is a big one for me\u2026 It\u2019s been ext<\/span>remely hard\u2026to<\/span> evict.\u201d<\/span><\/em> \u2014 California buyer<\/span><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Takeaway<\/span><\/h3>\n\n\n\n

Prioritize <\/span>vacant REOs<\/span><\/a> when speed to possession matters; price occupancy risk <\/span>in<\/span>.<\/span><\/p>\n\n\n\n

Bid-Ask Spread Rises at Foreclosure Auctions<\/span><\/h2>\n\n\n\n

Seller \u201cask\u201d moved down, but buyers also pushed bids lower, keeping a noticeable spread. That\u2019s a sign to keep offers tight, not chase.<\/span><\/p>\n\n\n\n

\u201c[I\u2019m] bidding lower prices to hedge for declining prices and climbing inventories.\u201d<\/span><\/em> \u2014 Texas buyer<\/span><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Takeaway<\/span><\/h3>\n\n\n\n

Use your <\/span>max-offer formula<\/span><\/a> (ARV \u00d7 target discount \u2013 rehab \u2013 fees \u2013 margin), and stick to it.<\/span><\/p>\n\n\n\n

Auction Market Dispatch FAQ<\/span><\/h2>\n\n\n\n

What is price demand?<\/span><\/h3>\n\n\n\n

It\u2019s the winning bid as a percent of after-repair value (ARV). Lower = bigger gross discount.<\/span><\/p>\n\n\n\n

Is it still worth bidding right now?<\/span><\/h3>\n\n\n\n

Yes\u2014rising supply plus <\/span>cooler<\/span> demand creates opportunities, especially for buy-and-hold investors. The key is conservative underwriting and solid rehab plans.<\/span><\/p>\n\n\n\n

Flip or rent?<\/span><\/h3>\n\n\n\n

With spreads tighter and rates elevated, some investors are leaning toward rent-and-hold to let time de-risk the trade.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Foreclosure auctions rose while buyer demand and pricing cooled in Q3 2025. Below, we’ll take a look at six key charts and buyer quotes to get a sense of today’s […]<\/p>\n","protected":false},"author":613784,"featured_media":153473,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6],"tags":[],"class_list":["post-186047","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-foreclosure-investing"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/186047","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613784"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=186047"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/186047\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/153473"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=186047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=186047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=186047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}