We are now entering late 2010. We seem to finally be exiting the recession (or at least, that is what everyone is hoping). The most important thing is that the real estate market seems to be bouncing back, with demand for homes finally meeting the extremely vast supply. What does this mean for you, the consumer?
Well, if you are looking to purchase a home, your best option may be to avoid new homes and to instead go with recently built homes that were repossessed. The reason we suggest going with recently built homes that have been foreclosed upon is because you will be able to benefit from the cost savings that repossessed homes tend to provide, while also benefiting from the fact that the home has been built quite recently (that is, within a few years), and thus the build quality will be sound and you will not have to worry about structural problems.
The main issue that people experience when they purchase repossessed homes is not that the price is too high – rather, they often find the prices to be stunningly low – but rather, that they run into quality issues mere months after purchase. Of course, when you buy a repossessed home, you do not get any kind of warranty or guarantees, so these quality issues must be paid for out of pocket. This adds to the final cost of owning the house, and generally means that buyers have allowed themselves to be misled by the “sticker price”, and ended up paying more.
The bank foreclosed homes guide says for whatever reason, people do not do the required amount of due diligence when purchasing foreclosed homes. For this reason it is best to avoid purchasing older homes, and stick with ones that were built recently. Of course, this is not a replacement for due diligence – it still makes very good financial sense to hire as many experts as possible to examine the house from every possible angle before you make any offers. As they say, better safe than sorry.
No related posts.