Builders nationwide have complained they can't compete with sales of distressed homes. But a Tempe, Ariz., outfit is using the drawbacks associated with buying foreclosed homes to fight back.
Adopting a play on the Nike motto, "Just Do It," Fulton Homes, one of the state's largest privately held home building companies, is telling buyers, "Just Don't Do It."
On billboards and in its television and radio advertisements, the company is highlighting the pitfalls of buying real estate owned, warning bargain hunters that while the deals may seem enticing, they'll have to deal with a lack of inspections, the arduous approval process and "the frustrating waiting game."
According to RealtyTrac, a research and analytical firm focusing on foreclosures, Arizona had the second highest foreclosure rate for the fifth consecutive quarter. One in every 55 homes in the state is in the foreclosure process, placing it second only to Nevada, which tops the list with one in every 29 homes in the foreclosure process.
In the face of one of the worst housing recessions ever, Fulton is soldiering on. To compete with the huge number of foreclosures and short sales, it offers an online tool, www.ForeclosureCostCalculator.com, that gives would-be buyers the "true cost" of buying distressed property. The calculator can be customized to fit the parameters of any property, and analyzes such factors as exterior paint, cabinets and termites.
