Bank owned homes often sell at a discount due to many factors including condition of the home, lack of warranties, not to mention the extra hassle one might have to go through in the process. I often get clients asking to see the “Foreclosed Deals”. Recently I showed a prospective buyer the listings below. These compose of builder inventory and lender owned properties in the Verrado neighborhood.
The lender owned properties have the following per square foot pricing:
Listing #2 $136.21, listing #6 $97.9, and listing #7 $108.1
The new build inventory homes have the following per square foot prices:
#1 $96.8, #3 $104.8, #4 $129.2, #5 $116.3
So as of recently the Bank Owned homes are not coming in at a discount compared to new build inventory homes and in some cases they are coming in at even higher per square foot prices than new build inventory homes. So what would you buy the a new home with a warranty or a lender owned home “AS IS”?