With the unprecedented number of bank owned homes on the market the allure of getting a great deal on a foreclosed home is more tempting than ever. But, have you considered a New home lately? The bank owned homes, although very frustrating at times, are great opportunities but the new homes can be equally great opportunities WITHOUT the frustration! Most of the builders have forcefully adjusted their prices to a competitive range now after realizing how many foreclosures were on the market and subsequently competing with. The upside to buying new vs. a foreclosure from the bank is extensive:
1. It's brand new, lets face it we all love anything that's new, it's just our nature as Americans.
2. They come with a one year "bumper to bumper" warranty. That's right anything that goes wrong , even so much as a hairline crack in the drywall is covered for one year. Then, most of them have a subsequent 10 year structural warranty. Try getting that from the bank!
3. You know the history of the new home...nobody has lived there! The banks don't give you any disclosures, Nada, Nil, zero! (But you will get lots of disclaimers)
4. Best of all, you get to pick your appliances, flooring, counter tops, and most everything that is cosmetic and you can in some cases make structural changes in the pre-construction stage. The exception there would be for standing inventory homes, in which case the builder is even more motivated to sell.
5. Finally, let's face it, buying a home is one of the ten most stressful things you can do. Straight from experience, it's much easier and way less stressful to buy a new home than it is a bank owned home right now. The builders are motivated, usually render a decision on your offer (yes that's right they will negotiate) within a couple of days at the most, and you don't have to compete with 17 other offers only to find out, via email only, that your offer was passed over like a brown banana.
I'm sure there are lots of other ways to compare the two, but if you don't have the stomach or the patience for buying a bank owned home in this frenzied market, buy a new home. You won't regret it.