My buyer clients fell in love with the builder's dream home. How could you not? Every corner was upgraded, literally with crown molding that dropped to an inverted peak in each corner of the den, for example. The ceilings upstairs were 10 feet high. Each bedroom had it's own bathroom tiled in ceramic. Wainscoting detailed the upstairs hall and each room on the first floor. The first floor had elevated ceilings, an impressive entry and a gorgeous breakfast nook with 3 skylights on an angled ceiling. The Kitchen.... granite countertops, of course, hardwood floors and french country cabinets. The backyard deck was built out of concrete blocks with a grill set right into it. This description is so great, it's almost boring right?
The point is, how do you choose the right house? The home they were torn by (originally) was a foreclosure of great value also and about the same price (low 300K). It had everything they asked for, including the 5th bedroom with the finished walk-out basement, extra square footage, set in a quiet family friendly subdivision. This home did not have the fantastic upgrades though. In fact, the knobs were missing from the cabinets in all the rooms; the hardwood floors slightly marred; the painting needed to be redone; the backyard needed a deck. Cosmetic work.
Is this a no-brainer? Not really. Not from the Realtor's standpoint. When a buyer starts to waver between two very similar homes, I present the facts and take a step out of the conversation. Let the emotion color their decision and suggest they sleep on it. Who is going to live in it after all?
Listing homes to sell within a 4 to 6 month time frame based upon a comparative market analysis and thorough knowledge of local markets. Service areas: Plymouth, Canton, Northville, Novi, South Lyon
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Angela, to break the tie, how about location? Sometimes new construction is not in built out neighborhoods which may take years to fill out. Your investment will always be competing with the new build jobs. Is either house closer to work or in a better school district? Surely despite the cosmetic flaws in the pre-owned house, it may be a good deal as well.
Gary, thank you for the comment. The two homes are in different subdivisions, about 1/2 mile from each other, same school district, and same distance from work. The foreclosure is in the complete subdivision - and as you suggested, the dream home is still under development. I personally prefer the foreclosure for investment but with adding upgrades, would the value in the long term come out the same as to the dream home?
You are so right Angela. You must give them all the facts and let them make the decision.