Foreclosed Homes in Austin and Distressed Properties for Sale
Foreclosure listings on Zillow, Realtor.com, and Auction.com are seen by every buyer in Austin. However, ForeclosuresDaily.com finds distressed real estate for sale before it gets there: motivated sellers who want to liquidate fast, reached privately and off the MLS.
Austin, Texas housing market at a glance
$499,900
Median listing price (down 9.4%)
11,135
Active listings in Travis County
74 days
Average time on market
$1,995
Median rent (down 5%)
Market data: Realtor.com Travis County housing market, October 2026. Zillow Home Value Index for Travis County: $466,106 (down 4% from a year earlier), August 2026. View homes on Zillow.
What is a distressed property?
A distressed property is a home whose owner is under pressure to sell. Usually, the cause is a life event, such as a missed mortgage payment, a death in the family, a divorce, unpaid property taxes, or repairs the owner cannot afford.
The median listing price in Austin is near $500,000, so a few points of discount decide whether a flip pays. Generally, those points come from motivated sellers whose property is not publicly advertised for sale and not listed on the Multiple Listing Service (MLS). Because there is less competition, you can negotiate wholesale pricing instead of bidding against retail buyers.
Austin has about 961,855 residents (2020 census) and sits in Travis County, Texas. Also, the ZIP codes with the most homes for sale today are 78745, 78754, and 78701.
How to find distressed properties in Austin
Foreclosure listing sites show homes after the bank or auction is involved. Therefore, to find a deal first, work earlier in the timeline:
- Pick your ZIP codes Initially, start with a few Austin ZIP codes where you know values and have cash buyers ready.
- Choose lead types Next, pick your leads, because probate, pre-foreclosure, divorce, code violation, and tax delinquency leads each signal a different reason to sell.
- Use fresh data Then use ForeclosuresDaily fresh leads, which are updated daily, so that you reach owners before other investors mail them.
- Target your marketing In addition, data targeting your marketing means mail, calls, and texts go only to owners with a real reason to sell.
- Run the numbers After that, estimate the after-repair value (ARV) from nearby sales, and then apply the 70% Rule.
- Make a fair offer Finally, solve the seller’s problem with a quick, as-is cash close, then wholesale or flip the property.
Motivated sellers who want to liquidate fast
For this reason, ForeclosuresDaily.com’s off-market real estate platform covers every major distress signal in Austin, cross-referenced with tax rolls and property appraiser records.
Probate leads
Executors who must sell before the estate can close. See probate leads →
Pre-probate leads
Families who may sell before a probate case is filed. See pre-probate leads →
Inheritance leads
Heirs who want to sell because they won’t keep the home. View inheritance leads →
Foreclosure leads
Owners behind on payments who want to sell before auction. Explore foreclosure leads →
Divorce leads
Couples who must sell when they divide shared assets. Find divorce leads →
Eviction leads
Tired landlords who want out because of problem tenants. Browse eviction leads →
Code violation leads
Owners facing fines and repairs they can’t afford. See code violation leads →
Tax-delinquent leads
Owners behind on property taxes who need cash soon. Target tax-delinquent owners →
Absentee owner leads
Out-of-area owners, especially those far from the property. Reach absentee owners →
Life leads and FSBO
Owners selling on their own rather than with an agent. Shop all lead products →
ARV and the 70% Rule for Austin flips
Real estate flippers and wholesalers use the after-repair value (ARV) to set their maximum offer. For example, the 70% Rule says to pay no more than 70% of ARV, minus repairs. As a result, that margin covers holding costs, closing costs, and profit for property flipping, or your assignment fee when you wholesale.
For instance, here is the math using the Travis County median listing price as the ARV and an 8% repair budget.
70% Rule example
| Step | Amount |
|---|---|
| ARV | $499,900 |
| 70% of ARV | $349,930 |
| Estimated repairs | − $40,000 |
| Maximum offer |
Austin ZIP codes to target
Each Austin ZIP code has its own price point and pace. Next, open a ZIP code below to open its investing data, and then match the area to your strategy.
ZIP 78701 · Downtown · $664,975 · Negotiate
78701 market snapshot
| Metric | Value |
|---|---|
| Median listing price | $664,975 ▼ 12.6% |
| Price per sq ft | $728 |
| Days on market | 96 days ▲ 0.9% |
| Median rent | $3,137 ▲ 1.2% |
| Active listings | 241 ▼ 1.1% |
| Gross rent yield | 5.7% |
In addition, the Zillow Home Value Index is $652,095 (down 2.7% from a year earlier) as of August 2026.
Prices per square foot run higher here than anywhere else on this list. Meanwhile, the median price is down 12.6% from a year earlier. As a result, softer pricing gives you room to negotiate with motivated sellers.
Max offer when the ARV equals the median price: $664,975 × 70% − $53,000 repairs = $412,482 max offer
Also see the full 78701 market report on Realtor.com →
Then view 78701 homes on Zillow →
ZIP 78703 · Austin · $1,197,000 · Negotiate
78703 market snapshot
| Metric | Value |
|---|---|
| Median listing price | $1,197,000 ▼ 23.8% |
| Price per sq ft | $638 |
| Days on market | 88 days ▼ 12% |
| Median rent | $2,500 ▼ 16.7% |
| Active listings | 154 ▼ 10% |
| Gross rent yield | 2.5% |
In addition, the Zillow Home Value Index is $1,307,386 (up 2.6% from a year earlier) as of August 2026.
Median prices are higher here than anywhere else on this list, so one deal can carry a big margin. Meanwhile, the median price is down 23.8% from a year earlier, and inventory is down 10%. Therefore, sellers here are adjusting to slower demand, so offers below asking get a hearing.
Max offer when the ARV equals the median price: $1,197,000 × 70% − $96,000 repairs = $741,900 max offer
Also see the full 78703 market report on Realtor.com →
Then view 78703 homes on Zillow →
ZIP 78705 · The Drag · $315,000 · Flip & wholesale
78705 market snapshot
| Metric | Value |
|---|---|
| Median listing price | $315,000 ▼ 1.5% |
| Price per sq ft | $396 |
| Days on market | 101 days ▲ 23.2% |
| Median rent | $1,350 ▲ 3.9% |
| Active listings | 172 ▲ 17.9% |
| Gross rent yield | 5.1% |
In addition, the Zillow Home Value Index is $324,507 (down 5.2% from a year earlier) as of August 2026.
Homes sit longer here than elsewhere, so long market times create motivated sellers. Meanwhile, the median price is down 1.5% from a year earlier, and inventory is up 17.9%. For this reason, lower prices keep your cash needs small for wholesale deals and light flips.
Max offer when the ARV equals the median price: $315,000 × 70% − $25,000 repairs = $195,500 max offer
Also see the full 78705 market report on Realtor.com →
Then view 78705 homes on Zillow →
ZIP 78725 · Austin · $275,000 · Negotiate
78725 market snapshot
| Metric | Value |
|---|---|
| Median listing price | $275,000 ▼ 6.8% |
| Price per sq ft | $190 |
| Days on market | 63 days ▲ 5% |
| Median rent | $1,984 ▲ 7.2% |
| Active listings | 99 ▲ 8.2% |
| Gross rent yield | 8.7% |
In addition, the Zillow Home Value Index is $266,038 (down 7.4% from a year earlier) as of August 2026.
Entry prices are lower here than in the rest of the group, so it fits wholesaling and first flips. Meanwhile, the median price is down 6.8% from a year earlier, and inventory is up 8.2%. Because of this, use the extra time on market to negotiate repairs into your price.
Max offer when the ARV equals the median price: $275,000 × 70% − $22,000 repairs = $170,500 max offer
Also see the full 78725 market report on Realtor.com →
Then view 78725 homes on Zillow →
ZIP 78727 · Austin · $449,900 · Negotiate
78727 market snapshot
| Metric | Value |
|---|---|
| Median listing price | $449,900 ▼ 9% |
| Price per sq ft | $255 |
| Days on market | 70 days ▼ 9.3% |
| Median rent | $1,997 ▼ 0.1% |
| Active listings | 88 ▼ 7.8% |
| Gross rent yield | 5.3% |
In addition, the Zillow Home Value Index is $450,280 (down 1.8% from a year earlier) as of August 2026.
Smallest inventory on the list, so an off-market lead faces little competition. Meanwhile, the median price is down 9% from a year earlier, and inventory is down 7.8%.
Max offer when the ARV equals the median price: $449,900 × 70% − $36,000 repairs = $278,930 max offer
Also see the full 78727 market report on Realtor.com →
Then view 78727 homes on Zillow →
ZIP 78731 · Highland Hills · $995,000 · Negotiate
78731 market snapshot
| Metric | Value |
|---|---|
| Median listing price | $995,000 ▼ 9.6% |
| Price per sq ft | $399 |
| Days on market | 64 days ▲ 1.6% |
| Median rent | $1,495 ▼ 16.9% |
| Active listings | 152 ▼ 18% |
| Gross rent yield | 1.8% |
In addition, the Zillow Home Value Index is $1,021,453 (up 1.8% from a year earlier) as of August 2026.
Meanwhile, the median price is down 9.6% from a year earlier, and inventory is down 18%.
Max offer when the ARV equals the median price: $995,000 × 70% − $80,000 repairs = $616,500 max offer
Also see the full 78731 market report on Realtor.com →
Then view 78731 homes on Zillow →
ZIP 78745 · Austin · $454,000 · Negotiate
78745 market snapshot
| Metric | Value |
|---|---|
| Median listing price | $454,000 ▼ 4.2% |
| Price per sq ft | $334 |
| Days on market | 66 days ▼ 2% |
| Median rent | $1,912 ▲ 3.4% |
| Active listings | 412 ▼ 4.5% |
| Gross rent yield | 5.1% |
In addition, the Zillow Home Value Index is $411,422 (down 5.2% from a year earlier) as of August 2026.
Largest inventory on the list, so there are more owners to reach. Meanwhile, the median price is down 4.2% from a year earlier, and inventory is down 4.5%.
Max offer when the ARV equals the median price: $454,000 × 70% − $36,000 repairs = $281,800 max offer
Also see the full 78745 market report on Realtor.com →
Then view 78745 homes on Zillow →
ZIP 78752 · St. Johns · $375,000 · Negotiate
78752 market snapshot
| Metric | Value |
|---|---|
| Median listing price | $375,000 ▼ 9.6% |
| Price per sq ft | $300 |
| Days on market | 78 days ▼ 15.4% |
| Median rent | $1,250 ▼ 21.9% |
| Active listings | 91 ▼ 3.9% |
| Gross rent yield | 4.0% |
In addition, the Zillow Home Value Index is $369,079 (down 7.2% from a year earlier) as of August 2026.
Meanwhile, the median price is down 9.6% from a year earlier, and inventory is down 3.9%.
Max offer when the ARV equals the median price: $375,000 × 70% − $30,000 repairs = $232,500 max offer
Also see the full 78752 market report on Realtor.com →
Then view 78752 homes on Zillow →
ZIP 78754 · Parker Acres · $369,000 · Buy & hold
78754 market snapshot
| Metric | Value |
|---|---|
| Median listing price | $369,000 ▼ 1.1% |
| Price per sq ft | $196 |
| Days on market | 64 days ▲ 6.1% |
| Median rent | $2,199 ▼ 0.1% |
| Active listings | 263 ▲ 68.6% |
| Gross rent yield | 7.2% |
In addition, the Zillow Home Value Index is $351,904 (down 5.1% from a year earlier) as of August 2026.
Meanwhile, the median price is down 1.1% from a year earlier, and inventory is up 68.6%. Consequently, rents cover a larger share of the price here, which helps rental investors.
Max offer when the ARV equals the median price: $369,000 × 70% − $30,000 repairs = $228,300 max offer
Also see the full 78754 market report on Realtor.com →
Then view 78754 homes on Zillow →
ZIP 78757 · Allandale · $564,900 · Negotiate
78757 market snapshot
| Metric | Value |
|---|---|
| Median listing price | $564,900 ▼ 6.5% |
| Price per sq ft | $386 |
| Days on market | 72 days ▼ 10.7% |
| Median rent | $1,750 ▼ 12.5% |
| Active listings | 160 ▼ 10.3% |
| Gross rent yield | 3.7% |
In addition, the Zillow Home Value Index is $584,408 (down 2.2% from a year earlier) as of August 2026.
Meanwhile, the median price is down 6.5% from a year earlier, and inventory is down 10.3%.
Max offer when the ARV equals the median price: $564,900 × 70% − $45,000 repairs = $350,430 max offer
Also see the full 78757 market report on Realtor.com →
Then view 78757 homes on Zillow →
Open a ZIP code below to see its investing data, then compare markets. Market data: Realtor.com, October 2026, and Zillow Home Value Index, August 2026. Also, gross rent yield is 12 months of median rent divided by the median listing price; the 70% Rule example assumes repairs of 8% of the median price.
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Austin foreclosure and distressed property questions
How do I find distressed properties for sale in Austin?
Initially, start with public-record signals such as pre-foreclosure, probate, divorce, and tax delinquency. ForeclosuresDaily.com gathers these records daily, so that you can contact Austin owners before the home is listed or sent to auction.
Where can I find foreclosed homes in Austin?
Bank-owned and auction homes appear on sites like Realtor.com, Zillow, and Auction.com. However, off-market pre-foreclosure leads let you reach owners earlier, while they can still sell on their own terms.
Which ZIP codes have the lowest entry prices?
Among the ZIP codes in this guide, the lowest median listing prices are in 78725 (Austin) at $275,000, 78705 (The Drag) at $315,000, and 78754 (Parker Acres) at $369,000, based on Realtor.com data from October 2026.
Where do homes sell fastest?
ZIP code 78725 has the shortest average time on market in this guide, at 63 days. As a result, fast markets reward investors who can reach owners before a home is listed.
How do I find distressed properties for wholesale profit?
First of all, focus on owners with equity and a reason to sell quickly. Then run the 70% Rule, and finally line up cash buyers before you sign a contract you plan to assign.
Get Austin distressed property leads today
Fresh, targeted, off-market data for Downtown, Austin, The Drag, and beyond.