Profile picture for doralgate

What are your thoughts on New Construction/Builders foreclosures?

Could you please give some advice on Builders forclosures; issues and concerns to be aware of. Seems like there is some properties around that were technically built in 2007 that have never been occupied or lived in possibly not even finished till recently. Just wonder if those are more of a can of worms, or a bargain to be had. Seems like the bank took over the property and had it finally finished out....just wonder what the integrity quality in cases like this would be....would the bank try to cut corners?
  • March 04 2010 - Fort Worth
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (5)

Profile picture for real estate mike
The first step is to go to the tarrant county courthouse if you find one you like and see how far they got with the permits. If they never got water/sewer hookup it will cost you thousands. I've seen $4-$5k. Second if the home had code violations that work will have to be repaired. The worst case is if they ignored inspections and built it disregarding code. You could be set back several steps in the building process. This is what I would do. Have a custom home builder look at the property and records with you and get estimate on what it will take to finish it out how you want. It's like any other realty transaction, it depends on how much you have to pay to get in it. But these deals can be much more complicated than most. Here's an example: somebody ran out of money or it would have gotten finished or sold so there are very likely liens against these properties. If you have any more questions I'd be glad to help as I can. best of luck
  • March 04 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

When you see the year built on builder's homes, that's when the year the permit was issued, so it fit they issued the permit in Oct. or Nov. the construction could have started in the following year.

Usually banks don't get involved in the construction.  Someone else must have purchased them and completed them or they may still not have a CO.

You will not get any warranties so you have do due diligence and research the builder and get thourough inspections done.
  • March 04 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

You need to confirm how the lender took title - via foreclosure or deed in lieu. Some contractor liens may not have been extinguished. You also consider any tax liens of the prior owner. 
  • March 04 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

If the listing agent is cooperative, he/she may give you some more insight. There are some around here that are excellent deals and the houses were virtually finished except for carpet, appliances, HVAC, and water heater. So a good inspection would be needed and well worth it.
  • March 04 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

You are right....some of them sat with studs exposed for 2 years or more.   Unfortunately it is really difficult to tell what is good and what is bad as everything at this point has been covered up.   I haven't seen any priced low enough to make me think they were interesting enough to sell to any of my customers.
  • March 04 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.