Are foreclosures sold at top or reduced prices?

[David E.]

Maybe this a dumb question but I been surfing sites like foreclosure.com and xome.com and it seems like the last 15 comps I did the sites are asking top dollar for these homes. What is the lure of buying a foreclosure if your not getting a discount ?

[JD Martin]

A lot of online auctions are crack-induced fantasies. Rarely do I come across any on any of the auction sites in my area that are even worth bidding on. Courthouse steps is another matter, you can get some good deals there if you're willing to do your homework and get a little lucky. 

The idea behind a lot of these auction sites is to get lazy people to think they're getting a "deal" because it's on an auction site. I would say that 95% of the homes in my area that go through the auction site end up back on the MLS in 6 months when no one will bite.