Buying new construction vs Bank Owned Foreclosure Property

By
Real Estate Broker/Owner with LemonTree Realty

There's been some debate lately as to whether you should buy New construction property versus a Bank owned foreclosure home in Orlando. I say either can be a great deal just depends what you are looking for and current housing needs.

 

Here are my top reasons you should purchase a New Construction Home in Central Florida:

 

  1. It's brand new - never lived in, most the time you get to pick the fixtures and have outstanding warranties from 1-2 year interior to 10 year structural
  2. If the community is new there are no bad loans in the community meaning no shNEw Construction homes in Orlandoort sales or foreclosures in your community to bring down the value or the aesthetics of the neighborhood.
  3. Unlike most bank owned properties the seller will pay all your closing costs not just 3 or 4%
  4. They will throw in stuff like appliances and blinds
The downfall to purchasing new construction is you generally pay a little more then you would a REO home, plus it takes time to build so if the builder doesnt have something ready in inventory you may have to wait 6 months for the home to be built.



Here are my top reason you should purchase Bank Owned, REO, Foreclosure Real Estate:

  1. Below market value - most homes are discounted 10-20% below market value
  2. Sweat Equity - Willing to do a little work or can get a 203k rehab loan take advantage of the deep discounted price and turn that eyesore back into the sparkling gem 
  3. Closing cost assistance and Special financing Deals - Most banks will pay 3% of the buyers closing costs and often times offer special financing deals like no PMI!
Bank owned real estate The downfall to purchasing bank owned property - most homes have not been loved and need some work, plus there can be some hidden defects the longer it has sat vacant so make sure to invest in that home inspection. Plus there is more competition for these homes often times there are multiple offers and people willing to pay more then asking, make sure to bring your patience when looking at these homes.


Check out our new website launching next week or make sure to Like us on Facebook below.

 

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Heather Unger, GRI, NRBA, CLHMS, CDPE, WinDs

RE/MAX Central Realty

www.HeatherTheRealtor.com     (407) 810-6304

Our Team Specializes in Luxury Real Estate, First Time Home Buyers, Short Sales, Bank Owned Real Estate, REO & Foreclosure Properties

Servicing Real Estate Needs in: Lake Mary, Longwood, Winter Springs, Sanford, Altamonte Springs, Oviedo, Orlando, Downtown Orlando, Thornton Park, College Park, Winter Park, Maitland, Windermere, UCF, Lake Nona, Baldwin Park, Apopka, Ocoee & Winter Garden

 

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Rainmaker
590,283
Phil Leng
Retired - Kirkland, WA
Phil Leng - Retired

Hi Heather,

Great post.

I can tell you have some momentum going in your real estate career.

It is great to feel the energy in your blog...

Good luck with the new web site

Phil

Apr 15, 2011 10:07 PM #1
Rainmaker
1,057,948
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

It also depends on where you want to live.  You will not find many new construction deals inside the Orlando beltway except for an occasional infill lot or a condo tower unit.  So if you want new, you have to be willing to drive.

Apr 17, 2011 04:41 AM #2
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Rainmaker
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Heather the Realtor Orlando, Lake Mary

First Time Home Buyers, Bank Owned Homes
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