Banks are overloaded with foreclosure and soon to be foreclosed properties yet they still try to hit a home run with every deal. New construction properties are a different animal the banks want to dump them ASAP. Homes are usually incomplete, costs hundreds or thousands to close up and make secure. They are in a fast state of deterioration only a special investor buyer knowledgeable in construction is willing to look much less buy.You can be one of those buyers here are some tips to help make the process go in the right direction for you. If you are not an experienced builder or general contractor hire one to do a preliminary inspection you also should talk with a structural engineer if the home is still in the framing stage or not drywalled.
Architectural plans for an unfinished house are a must. Contact the original builder its worth a try. The local city or county building department should have a set on file whether they will let you copy them is another story. In a community with architectural review check with the HOA architectural review committee they may hold a set of plans. Subcontractors if they can be located may also have a full set.
City or County building departments. Check with the local building department and health departments determine what permits have been issued on this property and what is the status. Will they reissue the permit in your name or that of your contractor, can you continue to complete the home? Who are the permit holders for electrical, plumbing, HVAC, well and septic system these contractors may not have been paid for work completed.
Property open missing doors & windows. Banks are not real interested in spending money so the property may sit for a long period of time open to the weather. You must as soon as you take ownership close-in the home complete the roof, cover all openings windows and doors. You will be protecting your investment from the elements and from vandals.
Subdivision issues. Are the roads, curbs & sidewalks complete? Has the section you are buying in received final city/county approval? Are the common areas completed the pool, playground, tennis courts, boat slips,club house all amenities promised by the developer? If not does the city/county hold a completion bond on all this type work?
Homeowners Association issues. Your subdivision HOA can have as much control over what you can and cannot do regarding your property as the city/county building departments. Are there any outstanding complaints against the builder? Are the plans fully approved by the Architectural review committee? Is the new home being built according to the approved plans? The HOA can stop you in your tracks it's best to check with them early in the process.
You can find some great deals in new construction homes the best places to look are in the more upscale luxury home markets. Also look at a more resort type setting as in lake front, golf course and beach locations. We work in these type markets along with our off campus housing markets. Stay away from subdivisions where the builder was also the developer it will have issues you can not resolve.
And now I would like to invite you to claim your FREE access to 2 recent articles "9 Tips For You to Make Real Money in College Rental Properties " and "9 Steps to Save Big Dollars For Your Student With In-State Tuition" at https://www.collegetowneproperties.com/Free_Helpful_Articles.html
Bill "The College Rental Investment Guy" is a leading expert on College Rental Investment Properties and Off-Campus Housing.
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