Foreclosure vs New Home
Your house hunting is in full gear. There are lots of similarly priced homes but there is one home that really seems like a good deal. It's priced low and definitely a bargain compared to others in the same community.
But is that low priced home a smart move as a buyer? Here are some things to consider when deciding
A bargain is not always what you think it is:
- Structural issues: Many foreclosed houses have been without air conditioning and electrical power for months. Houses can have mold on and behind walls, and may have hidden termite problems. A new Adams home will be treated for termites and given a renewable warranty upon delivery, plus newly built homes do not have mold.
- Prior homeowner sabotage: Many foreclosed houses have been damaged before the residents vacated the house to spite the bank. A new Adams home has been inspected, has warranties and is properly built and equipped according to our standard features list.
- Theft from empty house: Many foreclosed houses have been vandalized and may be missing appliances, air conditioning systems, hot water heaters, doors, shutters and cabinets. A new Adams home will be fully equipped according to our standard feature list with energy efficient central air conditioning systems and appliances.
- Without warranty: Many foreclosed houses come “as is” without any warranties or, at best, with limited warranties. Your new Adams home will have current builder and manufacturer warranties for all your appliances, air conditioning systems, water heater and roof.
- Know your costs: With foreclosed houses you know your initial cost and only after all the work has been completed, equipment replaced and maintenance done will you know the final cost of the house. If you require additional work, the funds will not come from a mortgage but will be out of pocket expenses. With your new Adams home you will know your contracted price up front with no hidden fees.
- Neighborhood and choices: A foreclosed house is situated on the lot the previous buyer chose and with color selections, tile, carpet, cabinets, countertops and other choices, all made by someone else. If it is an older home, it might not have hurricane shutters and may not be built to the updated building codes, which means higher insurance premiums. Your new Adams home will be built according to your specifications in the neighborhood and lot you choose. You select the floor plan and interior as well as exterior colors, tile, vinyl, cabinets, countertops etc. All Adams homes come equipped with hurricane shutters, (where applicable) which will meet or exceed the new hurricane codes and regulations. This means lower insurance premiums.
- Bank bid: With a foreclosed house you may place a bid to a bank and only after months of waiting, you will know if your offer was accepted or not. With your new Adams home in most cases, your home will be delivered to you within six months from the date of your contract.
Buying a foreclosure or short sale? Be prepared for the long haul.
The best short sale is a brand new home.