Buying Unfinished Homes
Unfinished homes present a great way to save a lot of money and get yourself a new home in the process. If you buy an unfinished home, you can keep your monthly mortgage payment low and also lower your initial investment. You may also be able to buy a larger foundation size, which you can easily add on to and save money in the process.
Normally, unfinished starter homes leave the upstairs area unfinished. The question here is just how much equity you want to put into an unfinished area. Sometimes, though, an unfinished home may leave the roofing, framing, plumbing, or electrical aspects unfinished. Before you make a purchase, you should always decide how much money you have to finish what needs to be finished.
If the home you are looking at has plans for a garage, you can save thousands if you decide not to go with the garage. On the other hand, if there is another attached room that is planned to go into 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 homes may have other planned additions as well, on which you can save a lot of money just by leaving them out.
This is something you should always keep in mind. When builders acquire a piece of property that they plan to build a home on, they will do everything they can to make as much money as possible on their homes. You might be able to get them to agree to some of these ideas, although they probably won’t agree to all of them. Building homes can be a very 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 look at 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. What this means is that there will need to be a living room, a bedroom, and other rooms finished. Most banks will not give you a mortgage if the house is substantially unfinished.
Most banks are also known to turn down unfinished home mortgages that they feel you will have trouble selling in the event that you default. Normally, the entire downstairs area would need to be finished, along with most of the landscaping. You might be able to do some of it yourself and save money, although in most cases, the home builder will need to do the 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.
As most of us already know, buying an unfinished home is an excellent way to get into the housing market and get your very own home. Unfinished homes also give potential buyers the chance to grow into their home along with their families. 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 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.
