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Replies (12)
- Daniel Reynolds, "Broker Executives"
- Contributions:355
Yep. We in Arizona have been listening to ads for at least two years from home builders that talk about the benefit of buying new. I think buying a new home has it's benefits, especially now. Prices are not what they were two years ago and home values have increased. Buying new might be a good thing now.
Daniel must live in some parallel universe, or have recently quit taking his meds!
"Prices have increased..." Yeah, unless you actually read ANY news... Cromford report shows prices are down, case-shiller shows AZ prices are down, the median price is down... They may have recently stabilized, but at lower levels than even a year ago..
New homes in Phoenix are primarily built way out in the boonies: queen creak, maricopa, goodyear, surprise etc. In those very same areas, you can find foreclosed homes for very low prices. Precisely why would anyone in their right mind buy a new home for 200K in goodyear, when they could buy an equivalent foreclosures for less than 100K? Recarpet, repaint and update the foreclosure, and count your money you saved...
"Prices have increased..." Yeah, unless you actually read ANY news... Cromford report shows prices are down, case-shiller shows AZ prices are down, the median price is down... They may have recently stabilized, but at lower levels than even a year ago..
New homes in Phoenix are primarily built way out in the boonies: queen creak, maricopa, goodyear, surprise etc. In those very same areas, you can find foreclosed homes for very low prices. Precisely why would anyone in their right mind buy a new home for 200K in goodyear, when they could buy an equivalent foreclosures for less than 100K? Recarpet, repaint and update the foreclosure, and count your money you saved...
- Dan Malloy, "Dan Malloy"
- Contributions:286
Ultimately - you get what you pay for. When you buy a used item for pennies on the dollar, be prepared for some (possibly nasty) surprises.
Just like after the flooding in New Orleans when the used car market was inundated with "great deals" on used cars - some buyers got more problems than they bargained for. Did some people make a great buy? Yes, but some people got burned too. The old axiom rings true again...
Buyer Beware!
Just like after the flooding in New Orleans when the used car market was inundated with "great deals" on used cars - some buyers got more problems than they bargained for. Did some people make a great buy? Yes, but some people got burned too. The old axiom rings true again...
Buyer Beware!
bad thinking and bad analogy there Dan... Good grief. these homes weren't flooded, they went into foreclosure.
Here is something that probably escaped your "thinking" (using the term loosely)
A new home becomes a used home the day you buy it. Yep, so when you try to sell it in a few years, it now compares to all of the other cheaper used homes out there... Enjoy that new carpet and new paint smell... oh you could recarpet and repaint the other home? oops.
Here is something that probably escaped your "thinking" (using the term loosely)
A new home becomes a used home the day you buy it. Yep, so when you try to sell it in a few years, it now compares to all of the other cheaper used homes out there... Enjoy that new carpet and new paint smell... oh you could recarpet and repaint the other home? oops.
- Spirit Messingham, "TucsonSpirit"
- Contributions:663
Of course they are, what else can they do? Consumers have more tools available than ever before, and they are smart. Talk with an agent or Realtor, run the numbers and decide for yourself. However, in Arizona we have a lot of inventory and please, make sure to take an agent with you if you are working with one before you even stop by a site.
Look at the numbers and see what or which option is best for you, is what I tell clients interested in new builds. Great question for discussion, thank you.
Look at the numbers and see what or which option is best for you, is what I tell clients interested in new builds. Great question for discussion, thank you.
- Jennifer Srock, "HomeBuyerSpecialist"
- Contributions:74
I say, to each their own fellas.
In this particular market I'm not sure the value of the builder's year end punch list and warranty repairs would be worth as much to me. There's no telling the builder will be in business by then or have the means to complete the service. With the AZ ROC reserves drying up as well, there's really no assurance. I'm not sure you always "get what you pay for" in this market. I'm sure you hear the stories.
I agree with Roberto. A decent "distressed home" doesn't mean it's in shambles. Some are even turnkey. Distressed homes may take some repairs too but with an inspection report, you have a pretty good idea what you're dealing with. With a new home, you have to wait for the settling and the regular use of the home to get an idea of what issues may arise.
Those builder ads are true to one perspective. It's just a matter of which consumers share that perspective. As an agent we shouldn't sway them either way but help them make their own informed decisions. The bottom line is what the consumer is most comfortable with. To each their own I say again.
In this particular market I'm not sure the value of the builder's year end punch list and warranty repairs would be worth as much to me. There's no telling the builder will be in business by then or have the means to complete the service. With the AZ ROC reserves drying up as well, there's really no assurance. I'm not sure you always "get what you pay for" in this market. I'm sure you hear the stories.
I agree with Roberto. A decent "distressed home" doesn't mean it's in shambles. Some are even turnkey. Distressed homes may take some repairs too but with an inspection report, you have a pretty good idea what you're dealing with. With a new home, you have to wait for the settling and the regular use of the home to get an idea of what issues may arise.
Those builder ads are true to one perspective. It's just a matter of which consumers share that perspective. As an agent we shouldn't sway them either way but help them make their own informed decisions. The bottom line is what the consumer is most comfortable with. To each their own I say again.
- Aaron Shipley, "Aaron Shipley"
- Contributions:4
So what about the new homes that went into foreclosure? What is their cost? I think this is ridiculous. There are foreclosures with problems but there are new homes with problems as well. I think just like anything else; careful inspection and due dilegence are needed. Yes its true some more than others. I like new construction and sell a ton but I love a good buy as much as the next person. It is definitely as Jennifer states to each his on. I however do not like the practice of saying anything negative about anyone else's product. Whether it is a bank or another agents listing. This is the nature of the market we are in, and we need to embrace the positives and better educate on negatatives.
- Michael Emery, "MikeEmery"
- Contributions:7297
Is there a lot of homes in AZ that were built and never occupied?
I know that was an issue in Central Florida where the landscaped is dotted with partially finished and nearly finished new homes that have sat empty for five years.
How would a builder argue against buying that kind of property.
I know that was an issue in Central Florida where the landscaped is dotted with partially finished and nearly finished new homes that have sat empty for five years.
How would a builder argue against buying that kind of property.
- Melisa Camp, "GreenPhoenixPro"
- Contributions:20
Of course they are; foreclosures are competition. I have noticed more and more REO's being fixed up w/ new paint and flooring to make them more appealing and move-in ready. Too bad they are not doing it green like some home builders are like Meritage and Pulte. I can smell the off-gassing when I walk in. Green matters.
- Leanne Smith, "Isellrealestate123"
- Contributions:173
WOW, just what consumers need now, to be uncertain about whether or not they are getting a great bank owned home deal! whats next!
- Pasadenan
- Contributions:21458
In a "falling market", no matter what one buys they need to be concerned if it is a good deal or not. Even if sold "at market value", it doesn't mean it is a "good deal" in light of where the market is heading.
And just remember, if you buy "new", you have no way to check to soil compaction, and if things will be settling after one moves in, nor the rate of settlement, nor if slabs will crack and where.
At least if it is older, it has already had time for those types of issues to become apparent, and possibly already addressed.
Besides, a lot of the "quality materials" stopped being readily available at a reasonable price decades ago, such as heart-redwood. If you can find a house framed in rough-cut heart redwood from the 1920's, it is likely going to last much longer than many of the "newer" homes.
Besides, look at the "quality" of studs used in the "new-builds" in Texas:
Just the kind of "deal" you were looking for, right?
Might as well just pull a box out of the dump and call it your "home"?
And they actually charge for that scrap lumber?
And just remember, if you buy "new", you have no way to check to soil compaction, and if things will be settling after one moves in, nor the rate of settlement, nor if slabs will crack and where.
At least if it is older, it has already had time for those types of issues to become apparent, and possibly already addressed.
Besides, a lot of the "quality materials" stopped being readily available at a reasonable price decades ago, such as heart-redwood. If you can find a house framed in rough-cut heart redwood from the 1920's, it is likely going to last much longer than many of the "newer" homes.
Besides, look at the "quality" of studs used in the "new-builds" in Texas:
Just the kind of "deal" you were looking for, right?
Might as well just pull a box out of the dump and call it your "home"?
And they actually charge for that scrap lumber?
- Tommy Johns, "Tommy Johns"
- Contributions:95
Foreclosure must be approached with caution! I showed a home that was foreclosed and the utilities had been turned off. When we opened the door to the basement, the stairwell drywall was covered in mold!
As for building, there is one HUGE benefit...everything is new, energy efficient, and carries a warranty. The prices in our area are indicitive of the "you get what you pay for".
A foreclosed home may be too much work for many buyers, if repairs need to be done. On the other hand, a foreclosure may be perfect for someone looking for a project.
I think to label building or foreclosed homes as "better" or "worse" is missing the point. The best home is the one that best fits our clients needs. Knowing the benefits of each is why our clients are hiring us as professionals.
Homebuilders running ads on the 'evils' of buying foreclosed homes.
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- 0.0/5.0
- (no reviews)
Contributions:7297Several companies have added a 'foreclosure cost calculator' to their websites.
More than 4 percent of Phoenix homes were lost to foreclosure last year, according to Arizona State University's School Of Business.
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