If I buy a home that has been foreclosed on, and the price is listed on the realtor/bank's website, is the price listed generally the total cost of the house? I'm looking to buy a house and I may buy a home that's been foreclosed on because they are cheaper. Is there any advice that you could give me on what I should look for or beware of if I choose to do this?

You can always negotiate the price and the closing costs. Some risk may include damage in the home. Foreclosures are sold as is, sometimes the bank will put some money into them to sell them quicker, just check for damage and get an inspector before you buy.

Like everything in real estate the listing price is negotiable. Banks aren't usually as flexible on pricing as a private home owner, but you can negotiate with them. Speak to a local real estate agent that can give you insight on pricing and what kind of offer to make. Some foreclosures are overpriced and knowing what you should offer can save you a lot of money.

There is a fair amount of research that needs to go into a forclosure, are you buying any encumberances along with the house? Who is paying any back property taxes if the house doesn't reel in enuff $$$ to satisfy the note, are the tenants already out? Depending on your area it may take a long time to evict....I would pay a few hundred bucks for a title company to do some research. Is the property insurable? Have an insurance run a CLUE report to see if it has any claims against it.......DUDE, Good Luck!

I just wanted to add to the previous statements( which are all on the right path about foreclosures) that you need to have your own home inspection done on any property you end up serious about buying. I have seen many people end up getting the shaft because they did not get their own home inspection done.

price must be different for different states according to some of the other answers. in texas what ever house is listed for in the MLS system is the asking price. who told you foreclosures are cheaper? most are market price and alot of them need work and no repairs are done and no warranty's