There’s a common misconception in today’s real estate market that the best deals are short sales and foreclosures. Many are finding that, although there are some good deals, in most instances, buying a new home is actually a better investment.
Why buying a new home is often a better investment?
Warranties
Newly constructed lofts/condos/homes, like ALTA Lofts, come with a warranty. If anything goes wrong, buyers have peace of mind knowing that most items will be repaired by the builder, so, there are no out-of-pocket repair costs to absorb. ALTA Lofts buyers are covered by the builder’s warranty. Ask our sales counselors for details on what the warranty covers.
Quicker responses on offers
New home buyers get a faster response to offers. Because you’re dealing directly with a builder, you’ll get a fast reply. Which means, in most cases, buyers can close escrow in a timely manner. Foreclosures can be held up for many months or indefinitely.
Special Financing Incentives –When buying from a builder, you are more likely to get financial incentives from the builder’s lender such as assistance with closing costs, below-market financing, below-market or market- rate buydowns, a quicker closing, and at ALTA Lofts, closing escrow without meeting a pre-sale requirement. Additionally, using the builder’s lender will expedite the escrow and closing. Financial incentives save buyers thousands of dollars and often make it easier to qualify for a loan. When purchasing a foreclosure or a short sale, no financing incentives are available and your loan must be in place prior to purchasing.
Being the First!
The best thing about buying new is being the first and only person to live in your newloft/condo/ home. Everything is brand new. It is an open canvas to design your own new space. Foreclosures are sold “as is.” And, with most foreclosures, the property is in an inferior condition, which requires you to spend more money before you can actually live there. Overall, you will be spending more money to fix up the foreclosure.
Other Dangers of Foreclosures
The purchase agreement documents for a new loft/home/condo have been approved by the Department of Real Estate and all items must be disclosed, so you know exactly what you are purchasing. With foreclosures, it’s always “let the buyer beware.” When buyers purchase a foreclosure, buyers have no recourse against the seller if there are construction defects, environmental hazards, or problems of any kind with the home.
Recent Comments