Phowells, Home Seller in Atlantic Beach, FL

What are the chances of selling a property that is not completed? New Construction in Atlantic Beach

Asked by Phowells, Atlantic Beach, FL Tue Apr 20, 2010

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Christopher…, Agent, Methuen, MA
Tue Apr 20, 2010
There is always a chance of selling any real estate in any condition, but it all depends on the asking price. If you price it right, a builder would probably want to buy the property and complete it. Location is also a big factor, but again that should also be reflected in the asking price. You could ask a local real estate pro that knows the area and local market to give you some guidance on an asking price and then list it and see what happens.
Web Reference:  http://teamlefebvre.net
1 vote
Jonathan Bla…, , East Atlanta, Atlanta, GA
Wed Feb 9, 2011
With any property you greatly increase your chances of selling if you have a desirable vehicle for financing.

How completed is the home? 50% 75% 85%?? Less than 75% and you'll need a construction loan at 20-25% down payment or a cash-buyer. More than 75% complete and renovation financing at 5-10% down becomes an option. However, the most common path for renovation financing, the FHA 203K, isn't applicable to unfinished new construction. You'll need a Fannie Mae HomeSTYLE (not to be confused with HomePATH) instead.

If you want to ensure that you close then the home should be marketed with financing assistance. Figure out your options and find an expert in that loan product to include with the listing as a way to pre-approve potential buyers and avoid time-wasters and tire-kickers.
0 votes
Kmbrennan, , Florida
Wed Apr 28, 2010
Phowells,
There are some difficulties but it is not impossible. The most promanent problem will be the financing. Many lenders do not like to take over financing builds that are 1/2 done. The buyer will need to have extensive inspections and contractor opinion letters in file for the UW to issue an approval for the new construction loan. I had one of these last year and learned the ropes on the go - but was able to get the financing in place and the loan closed to complete the construction.
The key to the closing was the new contractor writing a notarized opinion letter indicating that the previous construction was done correctly and lisiting all items that need to be replaced due to inactivity / exposure for the 6months that the project was on hold. I backed this up with a 3rd party inspector who said the same thing and had a good underwriter on the file.
Feel free to contact me with questions
kevenbrennan1@comcast.net

Keven
0 votes
Blaine Rabe, Agent, Jacksonville, FL
Wed Apr 21, 2010
Hi,

It is what it is. Just a lot harder to sell as it will probably go to an investor or some sort, with cash! If you can work with someone to determine present value, completed value, then you have a chance. That person will probably be a builder, but maybe not.

Regards,
Blaine Rabe
REMAX Specialists
904-874-0814
0 votes
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