Buying Quality Instead of Low Price - By: Rob Harding

You get what you pay for, no matter what you buy! Whether its cars, food, office supplies and homes - it makes no difference. Even though price doesn't necessarily mean quality, there is a lot to be said for quality verses low price when it comes to purchasing real estate. Here are some ideas on how to shop 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 have declined in value and 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 abandoned? These homes usually sell for pennies on the dollar for a number of reasons, and the most important one is that the homes have been 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. Generally, these type of 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 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 essentially do not exist 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.

About the Author

The Fairways at Buffalo Run has new homes for sale! We are the homebuilders for New Patio Homes in the Colorado real estate and Denver real estate market. Those looking for quality finishes and luxurious appointments don't have to look any further. All in a gated community on the Buffalo Run Golf Course. Just lock the door and go! http://www.FairwaysBuildersCO.com

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