What can I say…I’m a new homes guy. I grew up in the business and have been involved with new construction for 33 years, so I guess I’m partial to “brand spanking new homes”. Re-sales and new homes have always battled each other. Now there are two more competitors that have entered the ring and are getting much attention. They are short sales and foreclosures.
So how do you decide which is the best VALUE for you? The old adage that the cheapest price isn’t always the best deal holds true here. So, let’s take a look at your options.
We’ll begin with the short sale which is usually a distressed property that the owner can no longer make the payments on. As a result, owners negotiate with the bank to let them pay off the loan at an amount lower than that of their mortgage. What is unfortunate is that, oftentimes, these owners cannot afford the negotiated monthly payment which means that they cannot afford to properly maintain the property. The result is disrepair. It may seem like you are getting a “deal” but after all the repairs are made…is it really? In addition most short sales are sold “as is” with no warranties, which means you have no remedy if there is a major problem with the home! To say however, that there are never warranties would be incorrect. Just be sure to specifically ask if the home comes with one.