Foreclosures Versus Buying New
Foreclosed homes are major competitors for new homes. . . or are they? Certainly there are “deals” to be had in the foreclosure market, but there are also major pitfalls to avoid. If you are considering buying a foreclosure versus buying a new home in Central Florida, here are some tips on that “deal” you might be getting.
1. No Warranty. New homes come with a warranty. At Highland Homes we offer a one year Builder Warranty. Foreclosures are sold as is, so make sure you have a thorough inspection and know what you are buying. After you have owned your Highland Home for a year, we provide a 10-year structural warranty through Home Buyers Warranty Corporation.
2. HOA fees. If the foreclosure is located in a new home neighborhood, make sure to find out how the HOA is funded. If you are one of only two or three homes in a 200 home subdivision and the amenities are already built, you and your neighbors may be footing the bill for the pool, insurance, electricity and common area maintenance – do your homework!
3.Maintenance. If the previous owner could not afford to pay their mortgage, most likely they were not performing even the most simple maintenance. Again, do your homework, check all of the home’s systems before buying. (Refer back to item #1 – no warranty!)
4. Time is Money. Locating and purchasing foreclosed homes is time consuming. Often your first few attempts to buy foreclosed homes don’t work out and you have to start all over again. When purchasing a new home, you will know quickly if you offer was accepted and whether your financing is in place.
With all the great deals on new homes in the market today, don’t forget to do your research before buying what is perhaps your most expensive investment as well as your home!