How to score a good deal

In today's economic climate, buyers may consider buying a foreclosed house to give them a good return on their investment. "Buyers are looking for a bank-owned property to get value for their dollars," says Todd Yovino, owner-broker of Island Advantage Realty in Huntington, which has about 500 such listings on Long Island.

But the drawback is almost invariably the condition of the house, points out Brian Dwyer, owner-broker of Metro Property Services in Huntington Station, which also markets bank-owned properties. Some houses are stripped of appliances, some have been abandoned and some simply have not been maintained.

"You are buying a nonworking house, and you're buying it blind," says Philip Donnellan, licensed associate broker with RE/MAX Innovations in Wantagh.

He explains that bank-owned houses sold at public auction are usually offered "as-is" and that buyers usually cannot inspect the property before the sale; bank-owned houses listed with an agent can usually be inspected by buyers. Banks won't negotiate the sales price but will take a lower offer if it's the best one.

But these houses have "normally been closed up -- power off, pipes flushed," Donnellan adds. "They [can] sit literally for years."

A November study by Harris Interactive for Trulia.com and Realtytrac.com found that negative sentiment around buying a foreclosure rose in the past seven months. In a previous nationwide survey conducted in April, 69 percent felt that there were negative aspects to buying a foreclosed home. In November, 80 percent of U.S. adults were concerned with "hidden costs, risky process, home losing value and personal connection with foreclosure."

Despite the hesitancy and the real estate downturn, brokers say buyers are flooding the foreclosure market. And "today's buyer can do really well," says Yovino. There is no rule of thumb, although one source says properties have been known to be purchased for as much as 50 percent below market price.