Discounted Houses for Sale: Heirs, Divorcing Couples and Late Tax Bills
However, the deepest discounts rarely show up on Zillow or the MLS. Instead, ForeclosuresDaily.com finds owners under pressure to sell, such as heirs, divorcing couples, and owners behind on taxes, so you can buy discounted houses at wholesale pricing before they are advertised.
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Nationwide market numbers for discount hunters
Local market snapshot
Market data: Realtor.com U.S. housing market, October 2026.
What makes a house discounted?
A discounted house is usually a distressed one: the owner needs to sell fast because of a missed mortgage payment, an inherited home, a divorce, unpaid property taxes, or repairs they cannot afford.
For these owners, a quick and certain closing beats holding out for the highest price.
In fact, sellers who accept those discounts are usually motivated owners who never advertised publicly or listed on the Multiple Listing Service (MLS). Less competition lets you negotiate a wholesale number rather than outbid retail buyers.
Overall, realtor.com counts about 1,161,615 homes for sale across the U.S., with an average of 61 days on market. Specifically, the states in this guide made the list for their lower entry prices, with Michigan, Ohio, and Alabama leading.
How to find discounted houses
However, foreclosure sites list a house only after a bank or auction is involved. To find the discount first, work the earlier stages:
- Pick your states Above all, stick to a few states where you understand values and have cash buyers ready to close.
- Choose lead types Choose the motivation you want to target; probate, pre-foreclosure, divorce, code violation, and tax delinquency leads each tell a different story.
- Use fresh data Use ForeclosuresDaily leads that refresh daily so you reach owners before other buyers' mailers arrive.
- Target your marketing Then direct every letter, call, and text at owners who have a clear reason to sell.
- Run the numbers Then work out the after-repair value (ARV) using recent sales nearby, and test it against the 70% Rule.
- Make a fair offer Finally, buy as is, for cash, on the seller's timeline, and choose between assigning the contract and rehabbing once the deal is yours.
Sellers nationwide who want out quickly
ForeclosuresDaily.com's off-market platform covers the major distress signals in every state, with each record matched to local tax rolls and assessor files.
Lead types to work
Pricing a deal anywhere in the U.S. with ARV and the 70% Rule
In general, across the country, flippers and wholesalers set their highest offer from the after-repair value (ARV).
By the 70% Rule, you pay at most 70% of ARV less the repair budget. The difference covers holding and closing costs and the flip profit, or it is your assignment fee if you wholesale.
70% Rule example
| Step | Amount |
|---|---|
| ARV | $419,250 |
| 70% of ARV | $293,475 |
| Estimated repairs | − $34,000 |
| Maximum offer |
States with discounted houses to target
Specifically, each state below has one of the lowest median listing prices in the nation. Then open one to see its investing data.
Below U.S. median · Ohio · $289,000 · Low entry for rehabs and contract sales
| Metric | Value |
|---|---|
| Median listing price | $289,000 |
| Price per sq ft | $169 |
| Days on market | 43 days ▲ 8.1% |
| Median rent | $1,300 ▼ 3.7% |
| Active listings | 54,317 ▲ 6.8% |
| Gross rent yield | 5.4% |
Meanwhile, Ohio's statewide Zillow Home Value Index was $248,803 in August 2026, 3.4% above a year earlier.
Ohio homes sell faster than those in any other state on this list, and inventory has risen 6.8% in a year. As a result, lower prices keep the cash you need small for wholesale deals and light flips.
Max offer when the ARV equals the median price: $289,000 × 70% − $23,000 repairs = $179,300 max offer
Also see the full Ohio market report on Realtor.com →
Then view Ohio homes on Zillow →
Below U.S. median · Michigan · $300,000 · Low entry for rehabs and contract sales
| Metric | Value |
|---|---|
| Median listing price | $300,000 |
| Price per sq ft | $189 |
| Days on market | 43 days |
| Median rent | $1,500 ▼ 4.8% |
| Active listings | 61,728 ▲ 9.3% |
| Gross rent yield | 6.0% |
In addition, Michigan's Zillow Home Value Index rose 4% over the year to $266,292 as of August 2026.
Michigan has the highest price per square foot in this group. Meanwhile, its inventory is up 9.3% from a year ago. Entry prices still leave space for an assignment fee or a fast flip.
Max offer when the ARV equals the median price: $300,000 × 70% − $24,000 repairs = $186,000 max offer
Also see the full Michigan market report on Realtor.com →
Then view Michigan homes on Zillow →
Below U.S. median · Indiana · $299,900 · Low entry for rehabs and contract sales
| Metric | Value |
|---|---|
| Median listing price | $299,900 |
| Price per sq ft | $163 |
| Days on market | 50 days ▲ 8.7% |
| Median rent | $1,495 ▼ 6.6% |
| Active listings | 39,007 ▲ 6.4% |
| Gross rent yield | 6.0% |
Similarly, Statewide, Indiana gained 3% in a year and reached a Zillow Home Value Index of $260,095 in August 2026.
Indiana inventory is 6.4% higher than last year. Cash buyers actively shop this price range, so wholesale deals close quickly.
Max offer when the ARV equals the median price: $299,900 × 70% − $24,000 repairs = $185,930 max offer
Also see the full Indiana market report on Realtor.com →
Then view Indiana homes on Zillow →
Below U.S. median · Alabama · $330,900 · Low entry for rehabs and contract sales
| Metric | Value |
|---|---|
| Median listing price | $330,900 ▼ 1.2% |
| Price per sq ft | $167 |
| Days on market | 68 days ▲ 1.5% |
| Median rent | $1,550 ▼ 3.1% |
| Active listings | 48,147 ▲ 3.4% |
| Gross rent yield | 5.6% |
Likewise, Alabama values grew 1.9% from the year before, with the Zillow Home Value Index at $241,613 as of August 2026.
Meanwhile, Alabama has the highest median price among these states, so one deal can carry a large margin. Its median price is 1.2% lower than last year, and inventory is 3.4% higher.
Max offer when the ARV equals the median price: $330,900 × 70% − $26,000 repairs = $205,630 max offer
Also see the full Alabama market report on Realtor.com →
Then view Alabama homes on Zillow →
Below U.S. median · Mississippi · $295,000 · Low entry for rehabs and contract sales
| Metric | Value |
|---|---|
| Median listing price | $295,000 |
| Price per sq ft | $151 |
| Days on market | 73 days ▲ 4.3% |
| Median rent | $1,595 ▲ 14.3% |
| Active listings | 21,969 ▲ 5.1% |
| Gross rent yield | 6.5% |
Mississippi's typical home value rose 2.3% year over year, and its Zillow Home Value Index came to $197,606 in August 2026.
Moreover, Mississippi rents run high relative to prices, which favors buy-and-hold investors. Also, inventory has grown 5.1% over the past year.
Max offer when the ARV equals the median price: $295,000 × 70% − $24,000 repairs = $182,500 max offer
Also see the full Mississippi market report on Realtor.com →
Then view Mississippi homes on Zillow →
Below U.S. median · Arkansas · $320,000 · Low entry for rehabs and contract sales
| Metric | Value |
|---|---|
| Median listing price | $320,000 ▲ 4.9% |
| Price per sq ft | $167 |
| Days on market | 65 days ▲ 1.6% |
| Median rent | $1,500 ▲ 0.3% |
| Active listings | 32,848 ▲ 13.6% |
| Gross rent yield | 5.6% |
Similarly, with a 3.6% annual gain, the Arkansas Zillow Home Value Index reached $227,264 in August 2026.
Similarly, the Arkansas median price is up 4.9% from a year ago, and inventory is up 13.6%.
Max offer when the ARV equals the median price: $320,000 × 70% − $26,000 repairs = $198,000 max offer
Also see the full Arkansas market report on Realtor.com →
Then view Arkansas homes on Zillow →
Below U.S. median · Oklahoma · $299,000 · Low entry for rehabs and contract sales
| Metric | Value |
|---|---|
| Median listing price | $299,000 ▼ 0.3% |
| Price per sq ft | $163 |
| Days on market | 62 days ▲ 6.9% |
| Median rent | $1,299 ▲ 1.9% |
| Active listings | 37,195 ▲ 4% |
| Gross rent yield | 5.2% |
Likewise, Oklahoma home values climbed 2.8% over the prior year, bringing its Zillow Home Value Index to $223,261 for August 2026.
Oklahoma's median price dipped 0.3% over the year while its inventory grew 4%.
Max offer when the ARV equals the median price: $299,000 × 70% − $24,000 repairs = $185,300 max offer
Also see the full Oklahoma market report on Realtor.com →
Then view Oklahoma homes on Zillow →
Below U.S. median · Kentucky · $310,000 · Low entry for rehabs and contract sales
| Metric | Value |
|---|---|
| Median listing price | $310,000 |
| Price per sq ft | $174 |
| Days on market | 54 days ▲ 5.9% |
| Median rent | $1,395 ▼ 0.3% |
| Active listings | 30,102 ▲ 11.9% |
| Gross rent yield | 5.4% |
However, Kentucky is the one state in this group with slipping values: its Zillow Home Value Index fell 0.4% to $232,577 as of August 2026.
Still, Kentucky has 11.9% more homes for sale than it did a year earlier.
Max offer when the ARV equals the median price: $310,000 × 70% − $25,000 repairs = $192,000 max offer
Also see the full Kentucky market report on Realtor.com →
Then view Kentucky homes on Zillow →
Below U.S. median · West Virginia · $259,900 · Low entry for rehabs and contract sales
| Metric | Value |
|---|---|
| Median listing price | $259,900 ▼ 1.2% |
| Price per sq ft | $146 |
| Days on market | 57 days ▲ 12.8% |
| Median rent | $1,297 ▲ 8.1% |
| Active listings | 10,614 ▲ 2.5% |
| Gross rent yield | 6.0% |
Also, West Virginia's Zillow Home Value Index reached $179,496 in August 2026 after a 3.1% rise over twelve months.
However, West Virginia has the lowest entry prices of the group, a good fit for wholesaling and first flips. Its median price is down 1.2% from a year earlier.
Max offer when the ARV equals the median price: $259,900 × 70% − $21,000 repairs = $160,930 max offer
Also see the full West Virginia market report on Realtor.com →
Then view West Virginia homes on Zillow →
Below U.S. median · Iowa · $285,000 · Low entry for rehabs and contract sales
| Metric | Value |
|---|---|
| Median listing price | $285,000 ▲ 0.7% |
| Price per sq ft | $175 |
| Days on market | 58 days ▲ 3.8% |
| Median rent | $1,100 ▼ 7.2% |
| Active listings | 23,990 ▼ 0.3% |
| Gross rent yield | 4.6% |
Moreover, Iowa added 3.5% in value over the year, for a Zillow Home Value Index of $239,547 in August 2026.
Iowa's median listing price has risen 0.7% since last year.
Max offer when the ARV equals the median price: $285,000 × 70% − $23,000 repairs = $176,500 max offer
Also see the full Iowa market report on Realtor.com →
Then view Iowa homes on Zillow →
Rent yield here is 12 months of median rent compared with the median listing price. Also, each state's sample offer reserves 8% of the price for repairs under the 70% Rule.
Find discounted houses before other buyers do
The goal at ForeclosuresDaily.com has stayed the same since 2004: get investors, wholesalers, flippers, and agents to motivated sellers first.
Why off-market deals work
Discounted house questions
Where can I find discounted houses for sale?
Are cheap houses a good investment?
Which states on this list cost the least to buy into?
Which state in this guide has the fastest sales?
What turns a distressed property into a wholesale profit?
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