FORECLOSURE VS. NEW HOMES
If you look hard enough, and are in the right place at the right time, a foreclosure or short sale may be the best option for your family, but at the same time, these homes could end up becoming an investment nightmare. It is important that homebuyers understand some of the disadvantages of buying a foreclosure, and short sale, so that they’re making the best buying decision.
Here are a few things to keep in mind when considering a foreclosure or short sale as your next family’s home.
- These homes do not come with a homebuilder warranty.
- A foreclosure may have liens that are not free and clear.
- The financial institution must approve a short sale and the approval process can take several months.
- These homes may be missing important items like wiring or pipes.
- When you purchase a foreclosure or short sale, it will decrease the value of homes in the surrounding area.
- It is not always apparent that a foreclosure or short sale has been looked after appropriately, does the home have hidden issues that may prove costly after you move-in to the home?
- Is there an unknown reason that has caused the previous owner to walk-away from the home?
- Repair costs may not be included in the loan and could easily become out-of-pocket expenses.
Consideration of all the issues above is vital when deciding on your next home. Buying a home is a long-term investment and all ownership costs, apparent or not, must be a part of the buying assessment. As with many new homes, Meridian Homes’ new homes come with a warranty and have been built to the highest industry standards, but more importantly, they come with piece of mind and a helping hand.
Foreclosures and short sales often cost less, but they do not always prove to offer long-term value.
