Foreclosures, Then Short Sales, and Now Half Built Houses!

It is tough to be a buyer in this market.  The Washington Post and the New York Times say repeatedly that there are bargains to be had.  Poor buyers keep chasing the bargains, which seem to be on a track. always a few steps ahead of them.  But now,
there is a new phenomenon to capture buyers' dreams and expectations of profit -  half-finished homes for sale: bare-stud, bare-yard houses abandoned by their builders.

Purchasing a partially-built home is nothing new; lots of buyers do it as they sign new-home contracts before even a slab had been poured. However, now, the builder may no longer be around to finish the job. - A different story than going to Pulte or Ryan homes to buy a home under construction in a larger development!

Nationally, the percentage of incomplete houses among new homes listed for sale rose this year from 39% in January to 43% as of October, according to the U.S. census. Though those numbers included homes under contract and still under construction, they also included unfinished homes abandoned by builders and placed on the market by banks.

Prospective home buyers should take some precautions when considering the purchase of a half-built home.  The new buyer should definately have an inspection to understand the nature of the renovations which must be completed. In addition, the incompleted construction might have unanticipated effects on the property - such as mold because of the incompleted roofing or lack of windows.  Buyers who haven't had a house built for them before may be leery of such an undertaking, and out-of-town buyers may conclude they don't have the right kind of local contacts to get the work finished correctly.  As usual, a simple story and a simple (sort of) answer - Please rely on your local realtor to help you avoid big issues and bigger disasters. Finding a good deal can be very difficult and you definately need help!

If you are looking for a home in the DC metro area, I can definately help you with your search! Just give me at call at 240-401-5577 or email me at lise@lisehowe.com