55plusresales

West Chester, Pennsylvania

Articles devoted to the growing 55+ age qualified market, How to Buy into a 55+ community and how to sell a home in a 55+ community.

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55+ Community: Check Out The Builder!

Posted at 55plusresales by Geoff Wilkinson, CFP

May. 1, 2008

Tagged with: 55 homes, 55 plus community, active adult, age qualified, age restricted

Question: What are the dangers of buying new construction in a 55+ Community?

Answer: The Financial health of the Builder or Developer! With the market shift on in the new construction market Builders and Developers are increasing unable to complete their construction projects. When a builder goes bankrupt or simply cannot finish a construction project many people are affected:

Homeowners who have purchased in the community are ultimately responsible for ALL of the rest of the work! There are many examples around the country now where builders have gone bankrupt and homeowners are left holding the bag. Not only are they responsible for the completion costs, often the remaining land/lots are worth much less than was originally projected. Legal fees can quickly overwhelm a community’s effort to get out of the problems. In some cases homeowners cannot sell their home because the builder will not or cannot clear title!

Depositors can lose their deposit on their new home. Deposits should be held in a separate account from builder finances. Many times they are not and buyers find that their deposit has been used by the builder. This can be tens of thousands of dollars if a depositor has paid for upgrades such as Granite countertops, special cabinets, decks or finished basements.

What should a home buyer do? Ask lots of questions of the builders. Ask you title agent to check on liens on the master property ownership. How have sales been holding up? Has the builder not finished any other developments? Consider buying a finished home instead of ordering one from plans. That way you know what you are getting and will take possession of a completed home.

More information and a complete search for new and existing 55+ properties is available on www.55plusreasle.com . Check it out before you buy it out!

55plusresales.com

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