Unfinished houses present a great way to save some money and get yourself a new home in the process.  If you buy an unfinished house, you can keep your monthly payment low and also lower your initial investment.  You may also be able to buy a larger foundation size as well, which you can easily add on to and save money in the process.

Normally, unfinished  homes leave the upstairs area unfinished.  The question is, just how much equity you want to put into an unfinished area?  Sometimes the builder may leave the roofing, framing, plumbing, or electrical aspects unfinished.  Before you make a purchase, you need to know how much money you have for finishing what needs to be finished.

If the home you are looking at has plans for a garage, you can save thousands by not going with the garage.  On the other hand, if there is another attached room that is planned to go onto the house, you can save just as much if you decide to forgo it.  There are always ways that you can save money just by looking at the plans.  Unfinished houses may have other planned additions as well, in which you can save money just by leaving them out.

Something you should keep in mind is when builders acquire a piece of property that they plan to build on, they will do everything they can do make as much money as possible on their homes.  Thye may agree to some of these ideas, although they probably won’t agree to all of them.  Building homes can be a profitable business - which is why most companies like to build their homes exactly as the plans call for.

When looking at unfinished homes, you also need to find out what banks are willing to accept.  If you are planning to get a mortgage, most banks will need to ensure that the home is up to local codes and in living condition.  This means that there will need to be a living room, bedroom, and other rooms finished.  If the majority of the home is unfinished, most banks won’t give you a mortgage.

Banks are also known to turn down unfinished home mortgages on homes they feel they will have trouble selling in the event that you default.  Normally, the entire downstairs area will need to be finished, along with most of the landscaping.  In most cases the home builder will need to do a majority of the topsoil and grass just to satisfy the bank.  Banks have strict requirements when it comes to unfinished homes, which is why you should always check with your bank before you invest in an unfinished home.

Buying an unfinished home provides an excellent way to get into the housing market and get your very own home.  Unfinished homes also allow potential buyers the chance to grow into their home along with their family.  If you are interested in saving money, you should talk to the builder.  This way, you can go over the plans and decide what doesn’t need to be there.  In most cases you can save a lot of money and still get a home that will provide years and years of memories for yourself and your entire family.

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This entry was posted on Monday, May 19th, 2008 at 4:22 pm and is filed under flipping, home equity, mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.