Buying an Unfinished Home
Unfinished homes present a great way to save lots of money and get yourself a new home in the process. If you purchase an unfinished home, you can keep your monthly mortgage payment low and also lower your initial investment. You may also be able to purchase a bigger foundation size as well, which you can easily add on to and save money in the process.
Normally, unfinished starter homes leave the upstairs area incomplete. The question here, is just how much equity you want to put into an unfinished area. Sometimes though, an incomplete home may leave the roofing, framing, plumbing, or electrical components unfinished. Before you make a purchase, you should always decide how much money you have to accomplish what needs to be finished.
If the home you are searching at has plans for a garage, you can save thousands if you figure not to go with the garage. On the other hand, if there is another attached room that is planned to go onto the house, you can conserve just as much if you choose to forgo it. There are always ways that you can save money just by looking at the plans. Unfinished homes may have other planned on additions as well, in which you can save a lot of money merely by leaving them out.
The is something that you should always keep in mind. When builders obtain a piece of property that they plan to construct a home on, they will do all they can to make as much money as possible on their homes. You might be able to convince them to agree to some of these plans, although they likely won’t agree to all of them. Building homes can be a very profitable business - which is why most companies like to construct their homes exactly as the designs call for.
When looking at unfinished homes, you also need to look at what banks are willing to accept. If you are planning to obtain a mortgage, most banks will need to make sure that the home is up to modern codes and satisfactory in living condition. What this means, is that there will need to be a living room, bedroom, and other rooms that are completely finished. If the home is missing quite a bit in terms of being unfinished, most banks won’t give you a mortgage.
Most banks are also known to turn down unfinished home mortgages that they feel will have difficulty selling in the event that you default. Normally, the whole downstairs area will need to be finished, along with most of the landscaping. You may be able to do some of it yourself and conserve money, although in many cases the home builder will need to do a lot of the topsoil and grass just to satisfy the bank. Banks have stern prerequisites when it comes to unfinished homes, which is why you should always check with your bank before you invest in an unfinished home.
As most of us already know, buying an unfinished home supplies an outstanding way to get into the housing market and obtain your very own home. Unfinished homes also allow potential buyers the opportunity to grow into their home along with their family. If you are interested in saving money, you should be sure to talk to the builder. This way, you can go over the plans and figure what doesn’t need to be there. In most cases you can conserve loads of money and still get a home that will offer years and years of memories for yourself and your entire family.
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