The building boom in Las Vegas seemed on target just a couple years ago, when 6,000 new residents a month streamed into the area.  Now that the economy has slowed down, the number of new residents is down, and a steady supply of foreclosed and bank-owned property food the market, some of the new homes and condos remain unfinished. Often, the original builder went bankrupt.

The unfinished properties pose a challenge to both the new owners and to the communities where they stand.  The Upfront Condominiums in North Las Vegas sold only eight out of 75 units before the builder went into foreclosure.  Some of the buildings are partially complete, while the pool and clubhouse have never been opened.  This is particular project may be bought by another developer and renamed.  The risk is that the longer the buildings remain in a half competed state, the more risk there is of vandalism, dumping, squatting, and theft.

For potential homeowners, unfinished homes appear to be a great way to acquire a new home for less.  Should you bet on one?  This special situation in home buying poses special risks and requires special care.  Some concerns are obvious, but some not.  Finding a good real estate agent to help you through the process of finding the home, deciding if you want to buy an unfinished home vs. the many other homes available, and completing the transaction is essential.

First, you don't want to buy a new home that requires costly repairs from the get go.  If the builder was in trouble when he started the home, he may have cut corners or done shoddy work that could lead to later problems.  In addition, the home may appear to have survived the time between its start and the present time, but depending on how much exposure it had to the elements and the stage at which building was interrupted, it may have damage that will only be uncovered by an inspector or a building forensics engineer.  If the foundation or the plywood or other wood products used throughout was subjected to the elements because construction was stopped early in the process, the home could be subject to leaks, deterioration, and mold - not an ideal housewarming present.

Finding financing can be challenging as an unfinished home is not eligible for a mortgage; a construction loan is necessary first.  Unless you are competent (which usually means licensed) to do the work, hiring a contractor is a necessary step to convince the bank to finance the project.

Your contractor should take care of ascertaining that work is done in accordance with current building codes and obtain any additional permits.  If things have changed since permits were first issued, some finished work may need to be redone.

You will also need liability and property insurance on the project, as well as title insurance.  Given that you are considering buying property with a history there may be liability claims against the property if someone broke their leg when they tripped over unguarded construction materials, tax liens, or mechanic's liens if a previous subcontractor did not pay for materials.

A good real estate agent should be able to make the process of purchasing an unfinished home a smooth one for you.  A local agent can check on the history of the place for you and help you through the many parts of the homebuying process you don't have to think about when you buy a finished home.

We are experts in the Las Vegas area.  For the best in Las Vegas housing and the news on short sale and bank owned home opportunities, contact:

 N & Y Team

Nebi Adhanom Direct: (702) 277-9922

Yonas Woldu Direct: (702) 236-8997

Fax: 702-898-9738

www.VegasRealProperty.com

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