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Short Sale vs New Construction

July 24, 2013

As the housing market heats up there is more competition from investors for short sales and foreclosed properties which has squeezed out the first time home buyer and the mid-level move up buyer.

Over the past few weeks I have found myself presenting the new construction option to my buyers more often than not, because it has become a more attractive option.

A short sale which is usually a distressed property that the owner can no longer make the payments on can take 3-6 months to close. Oftentimes, these owners cannot afford the negotiated monthly payment which means that they cannot afford to properly maintain the property. The result is disrepair. It may seem like you are getting a “deal” but after all the repairs are made…is it really? In addition most short sales are sold “as is” with no warranties, which means you have no remedy if there is a major problem with the home. In some cases you may navigate all the hurdles and get to what you think is the finish line only to find that the seller cannot or will not be able to sell you the property..

Foreclosures are in the same category as a short sale. The only difference is that instead of being owned by an individual they are owned by a lending institution. Foreclosures also tend to be in worse shape than a short sale because the time to foreclose on a property is typically drawn out. During that time owners know they are losing the property so often do nothing to maintain it and sometimes remove fixtures and appliances.

So why buy new? The most compelling reason is that you do not have to worry about the condition of the property! All mechanical systems and appliances in working order, energy efficient designs ensure lower energy costs and, most importantly, you will have peace of mind that there are numerous warranties offered from the manufacturer and builder.

With the development of the 429 connector and the Wekiva Parkway, North Orange county is poised to be the next growth area in Central Florida. There are several great new home communities in Winter Garden, Ocoee, and Apopka. Over the next few weeks I will be featuring some of my favorite communities, models and floor plans.

Michael D. Bellamy, P.A.,
Charles Rutenberg Realty, Inc
407.536.MIKE(6453) (direct)
407.622.2122 (office)
407-567-7551 (fax)
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