After a troubling year for the construction industry, they are doing crucial steps to recover. To recuperate from the damage of the previous year’s housing depression and credit problems, many home builders have offers cost assistance and a lot of upgrades just to attract new home buyers.
Yet homebuyers are also curious with the affordable foreclosed homes readily available in the market, not knowing the risks and the misses they can face for purchasing pre-owned houses.
Here are some factors to be considered if a purchaser is more suitable to buy a foreclosed home or a newly built home:
- Pre-owned, repossessed homes may offer good deals but homebuyers are never sure of what they purchased until they actually lived in those homes. Remember: somebody had lived in that house.
- Before any deals are sealed, the purchaser must exert a lot of effort into research about the targeted home. Know if there are any title issues, liens and pending judgments. Do all of these in order to prevent wasting hard-earned money on a disappointing purchase.
- A foreclosed home does not have warranty. Usually pre-owned homes need a lot of repairs and remodeling. The bargain may become a burden.
- There is a limited choice of area, amenities and home features.
- Old homes mean out-dated systems and materials which may mean higher electric bills and even health threats.
- Bidding for a pre-owned home may require a bulk and quick payment. This may not be good for not well funded home purchasers.
- Construction companies now offer many incentives to new home purchasers.
- New homes have full warranty. Many home constructions cover materials and mechanical and electrical workmanship for up to two years. New homes also offer manufacturer warranty for appliances, air conditioning and heating system.
- Home builders give what the purchaser requests, needs and wants from location to floor plan, amenities and luxuries.
- New constructions offer the best and updated HVAC system and materials that are electric-bill friendly.
- New home constructions may refer their clients to their preferred and trusted lender – allowing them to enjoy incentives and low interest rates.
Though foreclosed homes may be more attractive due to its apparent bargain price if you look at things closely new home constructions may turn out to better deals with all of its benefits.