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foreclosed properties vs new affordable house and lot for sale in the philippines


New Home vs Foreclosure: Which Should You Choose?

March 9th, 2021 | Share via:

Many secondhand goods could make you exclaim, “that’s such a steal!” If the item is in great condition yet sold at a low price, what can you even complain about? If you’re after an affordable house and lot for sale, however, get rid of your bias in favor of preowned offers—foreclosures in particular.

For a homebuyer, the cost and condition of the property are two main buying considerations. Cost-wise, foreclosed homes are great choices. In terms of conditions though, newly built ones stand out. So, which one should you choose: new house or foreclosure?


One good thing about buying either foreclosure or new house is that you’re not starting from scratch when it comes to visualizing what your home is like. Foreclosures are already built after all. The same goes for newly constructed properties. However, there may be offers for new housing that are still under construction. Regardless, the developer provides 3D models of the homes which you can check out.

But between the two choices, new homes tend to beat the other in terms of design. Preowned houses, especially those made decades ago, are likely out of style. Elaborate features are some things that make them look and feel out of place.

In contrast, most of the newly constructed houses have contemporary design. Such design is best known for its preference for simplicity. It bids goodbye to multi-peak roofs for instance. Nowadays, the simpler the roof, the better. This mainly makes them easier to inspect and fix.

Contemporary design emphasizes maximizing space as well. Instead of dedicating one room for reading or for food storage, you might have them in one room. You can have your reading nook in your living room or bedroom. You can also set it up beside your window. Bring a bench with storage space to further make the most out the said space.

Spacious or not, one cozy seat can make a difference in a room.
Spacious or not, one cozy seat can make a difference in a room.


In the future if you need repairs, looking for replacement parts is easier if your home is brand-new. Comparatively, it’s difficult to get replacements for tiles and other parts of a foreclosed house that’s already decades old. The manufacturer may have stopped operating a long time ago or the production of the similar material may have been ceased. This is a major drawback if you’re very picky about details.

If you want to renovate, you might not be able to contact the actual contractor behind an old property as well. This leaves you with no option but to reach out to another contractor who may not be familiar with the antiquated style of the house.


A clean home is comforting.
A clean home is comforting.


If you’ve stayed in an old house before, you may have an idea about how noisy the pipes could get. Isn’t that bothersome? This is also embarrassing or distracting if you’re living with others or if you have guests. If not noisy, the pipes could be leaky.

As new homes have cleaner pipes and better fixtures, they’re more comfortable to live in. You don’t have to stress over clogs anytime soon.

Moreover, you don’t have to worry about neglected yards which many foreclosed houses come with. A brand-new yet affordable house and lot in the Philippines may only have an empty lawn but is likely mowed.

To be fair, not all foreclosed homes are uncomfortable to live in. Those that are constructed just a few years ago may not have plumbing noise and all other irritating issues. However, it may be hard for you to consider them as homey when you remember that there were previous dwellers before you.

What’s worse is that the former owners may not have bothered cleaning up and collecting their things. You have to stress over the cleanup before you transfer. The disposal is another potential worry.

Should you throw them all away, sell, or use some of the things left? If you tend to worry about these things, you can ask the broker or former owner to be sure.

In case you don’t want to go through such hassles, disregard foreclosures. Focus more on brand-new housing options which are usually empty. You can fill them with items that you actually bought and loved. As you’re the first owner, you’ll be comfier as there are no traces of previous dwellers in the house.

Safety and Security

Compared to a foreclosed one, a brand-new house is safer and more secured in many ways. One edge of a new house over a foreclosure is that the former is made up of construction materials that are just months or a few years old. The same can’t be said about the materials used in the latter.

You can expect that many of the structural parts of a new house is still under warranty period. So, for example there’s a damage in the door or roof, you can refer to your agent or the developer In addition to providing the similar or most suitable parts, the warranty prompts the developer to send a technician who has the know-how.

That saves you from the hassle of locating a repairman yourself. Also, the workmanship may be under warranty. If another problem arises, you know who to contact.

You don’t have to go the DIY route either. This may be cost-cutting at first, but over time, the poorly done repair can worsen the problem. With a skilled technician, you can feel confident that his work will prevents frequent and severe recurrences.

How well do you know about the construction of your house?
How well do you know about the construction of your house?


In another point of view, the foreclosed house may have antique parts that are now expensive. As mentioned before, replacement may be hard but it may be worthwhile if you want to raise the property value of such home. However, maintaining an old home could turn out stressful if you do it all by yourself.

In fact, it’s not just the maintenance; you have to think about upgrades before you move in. Otherwise, you’re bound to encounter safety and security problems as many foreclosed houses are neglected before their sale.

Pest infestation is one sign that the old house you’re considering is poorly maintained. This alone should be a major concern before you purchase a foreclosure. Pests can cause contamination and structural problems among others. Eliminating them can be troublesome but you have to do it.

Many foreclosed homes faced varying levels of vandalism, too. This calls for further cleanup and repairs. But aside from these, there’s the danger that strangers know the houses too well. In case you like a foreclosed house, go for one that has been secured with a gate and in a peaceful community.

If you’re browsing sites for foreclosures, you may be wondering why some of them end up as such. This is a good thing to ask the seller or broker about. Or, you can also do some research online.

What if the house has been a crime scene? What if it was previously used as a laboratory for illegal drugs? If not crimes, the homes might have been the sites where deaths or accidents happened. These could be reasons as to why former owners just left them.

Nevertheless, there could still be other reasons for their foreclosures. The former owners may have migrated a long time ago. As a result, they couldn’t or no longer wanted to pay for their real estate properties. Another possible reason is that the previous owners met personal financial crises. Regardless of the reasons, the properties involved weren’t maintained at some points.

Overall Costs

Foreclosures are usually sold at lower prices compared to their newly built counterparts. It’s not surprising that you can find them topping the lists of affordable house and lot for sale in property listing sites. But there’s a catch.

Can you find beauty (and cost) in the mess?
Can you find beauty (and cost) in the mess?


Buying a foreclosed home requires upgrading. That entails additional costs. If you think you’re saving a lot by choosing foreclosure over a new house, you could be wrong.

Consider the broken windows, rusty hinges, and weakened doors that call for replacement. Think about the service fees of the handyman you need to hire. Do you know how much it costs to update plumbing and electrical systems? Instead of just the resale value, weigh on the overall costs of getting a foreclosed house.

The upfront cost of a brand-new house isn’t as low as that of a foreclosed and abandoned house. But on the bright side, developers these days provide affordable price schemes for the former. You can take advantage of promos, too. These benefits aren’t usually offered for the sale of foreclosures.

Housing loans further make your purchase more attainable. You can apply for such loan whether you’re buying a new house or foreclosure. However, you should keep in mind that lenders tend to favor borrowers who are after a newly built home.

With a brand-new home, you won’t likely pay for more fixing and cleaning costs. You won’t even need to hire an inspector to help you assess the house’s condition before your purchase. The lower risks of dealing with these costs is a factor that prompt lenders to favor borrowers for this kind of properties.

Getting a housing loan for buying a foreclosed house may take more time as there’ll be more assessments. Additionally, the amount you can apply for may not be as much as what you can take for a new house. The interest rate isn’t that favorable either.

Ownership Process

Owning a real estate property doesn’t get done in one day. However, it’s manageable especially if your agent, broker, or seller is lending a hand.

Soon, you can shake hands for closing the sale.
Soon, you can shake hands for closing the sale.


If you opt for a new house, there’s a higher chance that the developer and agent will assist you from the start. They can present more options especially for an affordable house and lot in the Philippines. Then they’ll help you narrow down your choices so you can find the most suitable housing option for you.

Aside from houses, they also advise you on the available financing options. The best part here is that they aid in securing a loan for your purchase.

It gets even better as you get nearer to closing the sale. Your broker or agent can help deal with much of the paperwork. Perhaps, the only task left for you is to plan your upcoming move.

While the seller or broker may lend a hand, you have more tasks to do if you’re after a foreclosed house. You have to do a background check about the property and seller to find out potential issues.

As for the financing, you might have to work on this on your own. When it comes to the paperwork, you might need to ask a lawyer for further assistance.

Another problem with buying a foreclosed house is that the actual developer and architect may no longer be around. As such, you may have to hire a contractor to make several inspections to the property.

Due to their favorable price, there’s an intense competition among buyers of foreclosed properties. If you don’t have enough money for the down payment, you might not stand a chance against other buyers.

And even if you can handle the down payment, think about the waiting period. Due to the needed repairs, you might not be able to move in right away. In case you still relocated despite the damages, you won’t feel that comfortable.

There’s also the risk that the previous owner will raise issues about the foreclosure. It gets even messier if there are multiple claimants to the property. If you go for a brand-new house, you can be at ease knowing that you’ll never deal with such hassles.

For new, affordable homes, take a look at what Lessandra has to offer. Relax as the available houses for you are newly constructed and have modern features. Drop a message if you like to know more about our housing options. You might even scream “that’s such a steal” with the great housing deals offered by Lessandra.

For more tips and information on how to buy house and lot in the Philippines, check our website articles.