New Homes vs. Forclousure

Everyone has heard of the “deals” out there with buying a foreclosure; are they really there? Is it that easy, buy low, rent out, or improve and sell higher?

This can help explain what I am talking about “Buying Foreclosures” another article is “Why Buy New”

It’s not that easy, in-fact, its downright frustrating to get involved in buying a short-sale, or REO home. Why? Multiple bids, long waiting time, no follow up from banks, offers passed over, and one of the BIGGEST CONCERNS is there is NO WARRANTY! Who knows what you are actually buying.

Having owned multiple new homes myself, the warranty provided is one of the biggest reason to buy new. For the first full year, you receive warranty service by all new home builders. By Law, SB800, establishes this. There is piece of mind in knowing that you are only a phone call away from customer service for you new home. And it doesn’t stop at the first year, many items; i.e. roof, appliances, and more have multi-year warranties.

Foreclosures on the other hand are as is, typically no home inspection, and most are in poor condition. This is not to say there aren’t deals out there, but for every “deal” there are 10 bad stories and experiences of what went wrong.

To compare, take a look at both sides of the spectrum; new vs. foreclosure.  Don’t get caught in a bidding war, for a property that needs thousands of dollars worth of improvements.