Monday, December 27, 2010

BANKS ARE HOME BUILDER'S BIGGEST COMPETITORS

It just isn't right but it's happening all over the country.  Foreclosed homes owned by banks are hitting the market in record numbers and they are selling them about 35% less than the home buyer can buy a new home.


There is a little ray of sunshine here though.  Most of these homes are under-priced because they will need work to bring them back to their former glory.  Homeowners that couldn't make their mortgage payments simply weren't keeping up with needed repairs before they were forced to move out and the banks weren't going to put any money into fixing them up.  Plumbing, electrical and structural repairs that typically are fixed by the homeowners were neglected.  So how is this a ray of sunshine for home builders?

A lot of these new homeowners will need professional help to fix and repair their newly purchased homes.  Who will they turn to?  Certainly not the big box builder. 

They will look to small home repair companies and small home builders that have started to do repairs and additions in order to stay in business.

No comments: