Quality Homes Vs Low Price Homes

By shaye • June 10th, 2010

No matter what you

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buy, you get what you pay for! Cars, food, office supplies and homes – no difference. Even though price doesn’t necessarily equal quality, there is a lot to be said for quality for vs. Price when it comes to real estate pricing. Here are some tips on how to compare quality homes vs low price homes.

In today’s economy, almost house in the U. S. Homes have been hit with a large devaluation. It doesn’t matter if the homeowner is upside down on his mortgage or not. All homes are worth about 25% less than two years ago.

And these are homes that are being maintained, lived in and paid for. What happens to homes that are foreclosed on and

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abandoned? These homes usually sell low for a number of reasons, and the biggest one is that the homes have been broken into and vandalized. Frequently, the damage was done by the previous owner before being evicted.

This type of senseless vandalism brings the value down to a point where, on paper at least, many prospective buyers see this type of home as affordable and tend to focus on finding these properties to bid on.

However, even though these low priced properties might even be found in what is still considered desirable neighborhoods and developments, and the homes themselves may have originally been built with plenty of above average detailing and quality, they no longer in that classification. They are ruined.

These previously quality built homes are now going for some almost unrealistically low prices simply because they have been stripped of whatever worth they had by owners or even vandals who gained entrance to the homes while they stood vacant waiting to be sold again.

If buying a home in this condition isn’t something that interests you, then you do need to focus on only homes that have retained their quality through the sales process. Normally, these homes will be found through private sales and perhaps short sales. Since these homes are usually still being lived in by the present owners you have a better chance of buying quality and getting a decent price based on today’s market (and what lenders now view as the true value of the home).

Keep in mind that low priced homes might seem more affordable, but with all the damage you can expect to find, you should plan on spending thousands and thousands of dollars to get the property into a move in condition. This money needs to come from your

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own funds, not the bank. Some years ago you could put this amount into the mortgage under the guise of a home equity loan or line of credit. These loans are generally hard to find any longer.

Rather than spending all your money to rehab a home where rehab work might be impossible to determine up front, it would actually be in your best interest to buy a quality home where there are few or no immediate repairs that need to be done.

If a luxury patio home, in a gated, golf couse community with low maintence is what you are looking for… go to http://www.FairwaysBuildersCO.com

 

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