Buying new construction vs Bank Owned Foreclosure Property

There's been some debate lately as to whether you should buy New construction property versus a Bank owned foreclosure home in Orlando. I say either can be a great deal just depends what you are looking for and current housing needs.

Here are my top reasons you should purchase a New Construction Home in Central Florida:

1. It's brand new - never lived in, most the time you get to pick the fixtures and have outstanding warranties from 1-2 year interior to 10 year structural
2. If the community is new there are no bad loans in the community meaning no short sales or foreclosures in your community to bring down the value or the aesthetics of the neighborhood.
3. Unlike most bank owned properties the seller will pay all your closing costs not just 3 or 4%
4. They will throw in stuff like appliances and blinds

1. Below market value - most homes are discounted 10-20% below market value
2. Sweat Equity - Willing to do a little work or can get a 203k rehab loan take advantage of the deep discounted price and turn that eyesore back into the sparkling gem
3. Closing cost assistance and Special financing Deals - Most banks will pay 3% of the buyers closing costs and often times offer special financing deals like no PMI!

The downfall to purchasing bank owned property - most homes have not been loved and need some work, plus there can be some hidden defects the longer it has sat vacant so make sure to invest in that home inspection. Plus there is more competition for these homes often times there are multiple offers and people willing to pay more then asking, make sure to bring your patience when looking at these homes.