Homebuilders are switching tactics and confronting head-on one of their biggest nemeses: foreclosed houses that not only lure buyers away with deeply discounted prices but simultaneously depress the appraisal values of newly built homes.
At a packed session at the recent International Builders’ Show expo here, consultants and builders said that with gluts of foreclosures in major markets around the country — and more forecast to arrive in the next two years — the time has come to stop being passive and to begin aggressively educating buyers about the often hidden costs of buying foreclosures.
In Phoenix, one large builder, Fulton Homes, has put together the equivalent of an online truth squad — an interactive “foreclosure cost calculator” that allows shoppers to estimate the expenses they’re likely to encounter if they opt for a foreclosure
The calculator uses what the company’s vice president, Dennis Webb, said are commercially available expense averages for acquiring, repairing and outfitting foreclosed houses of varying sizes, conditions and price levels in the area.
Say you’re shopping for a home to live in, rather than to rent out as an investment. You locate a number of foreclosures at low listing prices.
You’re also aware of newly constructed homes that appear to carry higher prices for similar lot sizes and square footage.
Compare the cost of a foreclosure to a new home! CLICK HERE
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