Beware of new homes selling at bargain prices

"I have been offered a tremendous deal -- a house that appraises at $364,000 that I can buy for $294,000, with 100 percent financing, and the builder will pay all my closing costs ... I can afford the payment for only six months, and it will take all my savings, but the broker says that I will be able to do a cash-out refinance in six months based on the appraisal and net about $60,000, which will cover the payment for another two years. ..."

You need a reality check. If the builder could sell the unit for $364,000, he would not be offering it to you for $294,000.

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