How to sell unfinished house.


How to sell unfinished house.


Selling unfinished house is most difficult kind of transaction in real estate. Statistics data shows that unfinished houses are sold significantly below market price and selling duration could easily take years. If you face situation when you need to sell unfinished house than this article is good starting point for you.

In the beginning lets review main challenges which potential buyer faces if he decide to purchase unfinished house.

  • First question which usually potential buyer asks is about reasons why unfinished house is on sale. As a seller you need to be honest and provide real reasons. If buyer will have any doubts then he will consider house as problematic as seller is hiding something e.g. something went wrong during construction
  • Second problem is that in most cases unfinished houses do not have necessary papers and approvals. Without proper documents banks refuse to provide loans for buyers. For seller it means that almost no potential buyers as more than 90% of house purchases are done with bank loans.
  • Third important challenge is that it is very difficult for the buyer to estimate needed investment to complete the house. Sellers often drastically underestimate needed costs to finish the house. Here we recommend to contact profesional construction expert to get detailed calculation.
  • Fourth and most important risk is to purchase the house which was build with significant deviations from original project. Often it is not possible to obtain kasutusluba

At the same time unfinished house provides clear benefits for the buyer:

  • Possibility to make interior finishing according own needs and taste.
  • Completed house would be brand new
  • Significant money saving as price of  unfinished house plus expected finishing costs are below market price of brand new ready make house.

So if you need to sell unfinished house you should start with getting all needed papers and approvals:

  • Construction approval and project documentation
  • Estimated costs to complete the house.
  • Detailed description of materials used to build the house
  • Learn how you heating system works
  • Find all utilities agreements

As selling of unfinished house is very challenging task we recommend you to use real estate agent help where main benefits are:

  • Support to obtain all needed documentation
  • Calculation of realistic costs to complete the house
  • definition of right price strategy
  • Being partner for the buyers in this long process

Finding of a great real estate agent is the biggest positive influence to sell unfinished house