There’s a type of home on the market that could save you nearly 30% of its original listing value in 2026. Realtor.com’s new report looks into foreclosed homes—and as they’re lowering in price, these listings are also rising in popularity with buyers. So far, they’ve also been netting over 26% more page views than the average listing in 2026, which isn’t surprising, given their lower-than-average prices.

If you’re thinking about taking advantage of these types of deals in 2026, here’s what you need to know.

Why are Foreclosed Homes So Much Cheaper?

It might seem a little strange that foreclosed homes can net you savings of over 20%. The good news is, these low prices aren’t necessarily because there’s something wrong with the home—in most cases, the lender is offering a discount in order to sell the home faster.

The foreclosed homes you see on the market have already failed to sell at auction. When this happens, the home usually moves to a Multiple Listing Service (which includes platforms like Realtor.com). Then, you (or your real estate agent) can look at the listing and see if it might be a good fit. The longer a lender owns a foreclosed home, the more costs they incur to keep it. Therefore, they want to sell it as quickly as possible. Once it hits the MLS, it’s prime time for you to score a discount.

The foreclosed homes you see on the market have already failed to sell at auction. When this happens, the home usually moves to a Multiple Listing Service (which includes platforms like Realtor.com). Then, you (or your real estate agent) can look at the listing and see if it might be a good fit. The longer a lender owns a foreclosed home, the more costs they incur to keep it. Therefore, they want to sell it as quickly as possible. Once it hits the MLS, it’s prime time for you to score a discount.

The Potential Downsides of Buying A Foreclosed Home

That’s not to say that foreclosed homes don’t come with issues of their own. If the home needs extensive repairs, you’ll likely need to take these on yourself, which means, after shelling out for a remodel, your initial discount may not be quite as hefty as it seemed.

Realtor.com also points out some other statistics that might make it tricky for you to settle on a foreclosed home. The platform says that REO homes had 30.4% fewer photos and 33% shorter descriptions than your average listing, which makes it more difficult to determine if the home is worth a look. Rather than being able to identify dealbreakers from a listing alone, you’ll need to dedicate more time to looking at foreclosed homes in person.

Don’t Discount These Discounted Homes

While purchasing a foreclosed home can seem daunting, it’s still a great way to save money on a home in 2026. Realtor.com experts say that as long as you know what you’re getting into, looking into foreclosed listings in your area is a good way to go.

“In a market where affordability is still the dominant challenge, foreclosures offer a path to a meaningful discount,” said Joel Berner, Senior Economist at Realtor.com, in a press release. “The process takes patience, but for buyers who are prepared and can navigate the challenges of buying this type of home, the savings are real.”

Foreclosed Homes are Selling for Nearly 30% Less in 2026 – What Buyers Should Know? by Sophia Beams | Better Homes & Gardens