How to Find a Unfinished Home to Buy

By Mark J. Donovan

Question: I am trying to do some research on how to go about purchasing an unfinished home. I am a potential first time home buyer and would like to save some money. I guess the purpose of my question is to ask how does a person go about finding an unfinished home for sale?

I would think that a general contractor might be put off by just going to the site and asking. However is this how to go about doing it? Also would real estate agents have this information? Its hard to find any information about this and any tips you could offer would be appreciated.

Answer: Talk to a builder who is building either a development or custom homes. I bought two homes this way. In one case I had the custom home built specifically requesting the upstairs be unfinished. In the second case the builder was only planning to finish the downstairs.

Typically unfinished homes are considered "starter homes" so look for the builders who are building "affordable housing" vs the McMansions.

Also keep in mind that in order to build an unfinished home you, or your builder, will have to meet miniumum code requirements. So, for example, the downstairs will need a bedroom with a door and a closet even though this room may eventually be used as a dining room or den, which may not normally have a closet in it. Also, you will typically need to have a full bathroom on the first floor, along with the kitchen.

During housing booms, most builders want to finish the whole house to maximize their ROI on the land purchase, however during housing busts, you are more likely to find builders that are willing to work with you.

You can also contact a real estate agents. They will know the builders in your local area that are flexible with buyers and/or that may be in the process of building a housing development.

Don't be shy with talking with building contractors. You are their potential customer, and in a down housing market they should be more than happy to have a potential buyer contacting them.