Are foreclosed homes the best value in today's market?
You've seen the signs in most Central Minnesota neighborhoods: Foreclosures. Homebuyers are considering these foreclosed properties for their housing needs, often due to below-market pricing.
People can save 25% or more off the market price of a home. That sounds very enticing...but VERY RISKY!
From a pure financial standpoint, a foreclosed home looks like a good buy, but the checklist below shows that the purchase of a foreclosed home may well COST YOU MORE than buying or building a new home.
| Consideration | NEW Home | Foreclosure |
|---|---|---|
| Up-To-Date Home Design | YES | NO |
| Warranty | YES | NO |
| New Heating System | YES | NO |
| New Plumbing | YES | NO |
| Built To Your Needs | YES | NO |
| More Energy Efficient | YES | NO |
| Existing Mold/Air Born Allergens | NO | High Probability |
| Unforeseen Repairs/Hidden Costs | NO | YES |
| Built to Current Building Codes | YES | Unknown |
| Clean Title Work | YES | Unknown |
| Easy Buyer Process | YES | NO |
| Easy Financing Process | YES | NO |
| New Safety Equipment (Radon/Co/Wiring) | YES | Unlikely |
| Higher Potential For Appreciation | YES | Unknown |
When purchasing a new, energy efficient home, there is no increased investment. What you get is substantial cash savings in the operation cost of the home from day one. We have discovered that, through a combination of equipment, components and construction techniques, we can build a house that is markedly more energy efficient than a similar-looking house we would have built even four years ago. We're now building houses that are 40% - 60% more energy efficient in today's market.
While you may be considering the purchase of a foreclosed home, please consider the facts above in determining whether it truly is the best option for you. Lumber One staff members will be happy to further explain the benefits of buying or building new with Lumber One.
