The housing market is a dead market these days. Buying a new home is almost unheard of with the amount of resales and foreclosures that are on the market. The savings that are staring people in the face are just too good to pass up. But the real question is if these foreclosed homes are worth buying. Now, there is no way to speak for every house on the market, and many of these bank owned properties are a great value, but there are some things you should think about before you enter into the foreclosed market and ditch the idea of a new home.
The biggest problem with a foreclosed home is property rot. Think of a used car lot. There might be a 5 year old car that seems like a really great buy. It’s the make and model you want but the problem is that it’s been sitting on the parking lot for years, just rusting. The same can apply to a house. You don’t want a house that hasn’t been occupied in years. This can cause problems in the pipes, or the electrical system could need some work. This is not the way you want to go into your new home. It could be a hidden cost that you weren’t expecting.
The other problem has to do with the warranty. When you get the business cards of banks trying to sell you property, that doesn’t mean they come with a guarantee. This is a risky proposition. The issue is that if something were to go wrong with the roof or the foundation, for instance, you wouldn’t be protected. These things can be very costly and set you back for years. You want to think about these things the next time you are looking at foreclosed property.