[quote=FormerOwner]
One thing I’ve been noticing though is that the new home builders (the few that are still building) are charging approximately $100,000 more than the banks for the same types of houses. I don’t think the builder’s warranty and the $10,000 tax incentive is worth $100,000! What a rip. Plus, when you buy new, you’ve got to put in the yard, the pool (if you want one), the window treatments, etc. Buying a foreclosure or short sale is definitely the way I’m going to go. You just have to get a good inspector and check the place out during the inspection period.
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Based on the prices I’ve seen in Temecula, I think the REO’s are selling well below what construction costs on them would run (even in a depressed construction market with labor and materials at relatively low cost). It’s basically impossible for the builders to compete there right now (probably why a lot of builders have simply mothballed their projects there).
