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Is a distressed home a deal?

By
Real Estate Agent with First Time Buyers, Investors, Winter Homes, Move Up Buyers

 

Listening to the ads on the radio and television, or reading newspaper articles, most people think that they can get a “deal” by buying a foreclosure or short sale home.

 

Most of these homes, however, are in distressed condition.  And it only makes sense.  If a homeowner can’t make a mortgage payment, there won’t be money to fix a leak, or get the water heater replaced, or even get the carpets cleaned.  Many buyers find they have to put a lot more money into the distressed home they purchased than they had hoped.  And that’s after getting a home inspection, so they had a pretty good idea of what was needed starting out.

 

To me the “real deal” today is a brand new home.  A lot of the smaller builders are not around, but there are reputable builders who are beginning to build what they call inventory homes and write contracts with buyers who are willing to wait a bit for their new home

 

 

Why buy a distressed home, when you can have a brand new home, and perhaps get a few upgrades to make the “house” your home?

 

A new home comes with a builders’ warranty for at least a year, and in some instances, longer – up to ten years.  New homes today are being built to be energy efficient – something you won’t find in a 20 or 30 year old home.

 

 

And builders are giving many incentives to purchase a new home.  Some builders are including home automation to unlock doors, control temperature, or schedule lights on and off from your smart phone or iPad.  Also luxury features, i.e., appliances, can be included with no up-charge.  Some may even offer agents a bonus for bringing in a client who completes a transaction with the builder. 

 

 

 

With prices in our area at the lowest levels in years, and interest rates at unbelievable lows, agents should consider bringing their clients to new home communities – it may be just the right home for the right price.

 

 

Bud & Beth McKinney
RE/MAX UNITED - Cary, NC
Cary/Raleigh/Apex NC - The Team That Cares, RE/MAX United

I think that some buyers want to have distressed homes, because they want to fix them up in their own way. Also, all that some see if a good deal, they don't think though Why the deal is so good.

Mar 09, 2012 04:07 AM