sell an unfinished house pennsylvania

Millions of people purchase real estate every year with the hopes of improving it through renovations and then selling it back to a new owner at a higher price. These are called house flippers. However, many investors who choose to take this kind of project on are often surprised by the amount of work, speed of progress and level of overall physical and financial effort. It’s glamorous to watch on television but an entirely different thing to take on for yourself. So what happens when someone stops in the middle of a “flip” and decides they need to get out of it? This is when they contemplate selling an unfinished house.
Selling an unfinished house is not only problematic for the seller, but also the new buyer. Who really wants to step into a half-finished project after all? People want “move-in” ready homes…and so do banks and lenders. In fact, many large mortgage companies will not lend out money for homes that are not totally liveable and complete. Unfinished and unfinanceable is a nightmare for any seller.


  • Homes that are unfinished could mean hundreds of different things. How do you find out the real reason and why should it matter to you, the new buyer?
  • There are always pockets of unfinished properties listed for sale. Some sit on the market for years while others go quickly. Find out what makes the difference.
  • Selling an unfinished house is quite different than selling a finished one. With just a little bit more diligence and preparation, you can successfully offload a flip that is only partially finished.

Table of Contents

What Is An Unfinished House?

An unfinished house is a real estate property that is still in the process of construction or has been abandoned before the construction was completed. Such properties may range from a small unfinished tiny house to a larger unfinished building or mansion, depending on the intended purpose of the property. Uncompleted house construction can occur due to various reasons, including financial difficulties, design errors, and unforeseen events.

how to sell unfinished house pennsylvania

An unfinished house can present an opportunity for those interested in purchasing real estate at a lower price than what they would pay for a completed property. However, buying an unfinished building comes with its own set of challenges and risks. It is important to carefully assess the property before making a decision to purchase.

Any unfinished property that is abandoned or under construction can also present a hazard to the surrounding community. These properties pose security risks, not to mention unsafe structures such as a roof or walls. In some cases, an uncompleted house may require permits or inspections to ensure that it meets local building codes before construction can restart. In some locations, even before it can be sold!

The architecture of an unfinished house can vary widely depending on the intended purpose of the property. Some unfinished homes may be constructed using traditional materials such as concrete blocks, while others may incorporate more modern designs and materials. The design and architecture of an unfinished house can be a major factor in determining its value and appeal to potential buyers.

Why Do Houses Go Unfinished?

Have you ever driven by a construction site and wondered why a house looks like it’s been left unfinished? An unfinished house is a property that has not been fully constructed or completed, either because the building process was interrupted or because the property was abandoned before completion. It can range from a small unfinished basement to a larger unfinished structure, and can present both opportunities and challenges for buyers and sellers alike.

Reason #1: Financials

There are several reasons why a house may be left unfinished. One common reason is financial constraints. Building a house requires a significant amount of money, and sometimes unexpected expenses arise that can make it difficult for builders or homeowners to complete the project. If they don’t have enough money to continue the construction, the building process can come to a halt.

Reason #2: Design

Another reason for an unfinished house is due to design errors. Sometimes builders or architects make mistakes in the design process that can result in delays or errors during construction. If these errors are not caught early enough, they can result in significant delays in the building process, or in some cases, may even require a complete redesign.

Reason #3: Unpredictable Events

Unforeseen events can also cause an unfinished house. For example, if the builder or homeowner becomes ill or experiences a personal crisis, the building process may have to be put on hold. Although less common, natural disasters such as hurricanes, floods, or wildfires can also disrupt the construction process, damaging the property and delaying the completion of the project.

Reason #4: Modular Units

Modular or prefabricated homes can also be unfinished. These homes are constructed off-site in a factory and then transported to the building site, where they are assembled. Sometimes, the final touches are left unfinished, such as the installation of flooring or the completion of the plumbing and electrical systems.

With proper planning and oversight, an unfinished house can be transformed into a beautiful and functional home…but it will take some work and patience!

Why Sell An Unfinished House?

Is It Hard To Sell An Unfinished House?

Selling an unfinished house can be challenging. Prospective buyers may be hesitant to purchase a property that is not yet complete, especially if they are looking for a move-in ready home. However, there are options available to sellers looking to offload their unfinished building, and using a cash buyer may be one of the best options.

One of the biggest challenges with selling an unfinished house is finding a buyer who is willing to take on the project. This is especially true if the property is larger and more complex, like a mansion or a million-dollar home. After all, who would spend that much money on something that isn’t finished? It’s hard to justify! That’s why many buyers may be turned off by the idea of finishing the construction themselves, as it can be a time-consuming and expensive process.

Another challenge is that interest rates on mortgages may be higher for unfinished homes. Lenders may view an unfinished home as a higher risk than a completed one, and may charge higher interest rates as a result. This can make it more difficult for buyers to secure financing for the purchase.

Using a real estate agent to sell an unfinished home can also be difficult. Agents typically specialize in selling completed homes, and may not have the expertise or connections needed to find a buyer for an incomplete house. Additionally, real estate agents may charge a commission that can eat into the profits of the sale.

One option for sellers looking to sell an unfinished house is to use a cash buyer. Cash buyers are investors who have the funds available to purchase properties outright, without the need for a mortgage. This can make the process of selling an unfinished house much faster and easier, as there is no need to wait for financing to be approved.

Using a cash buyer can also be beneficial for sellers who are looking to offload their unfinished property quickly. Cash buyers are often willing to purchase properties as-is, meaning that sellers don’t have to worry about making any repairs or finishing the construction before selling. This can save sellers time and money, and allow them to move on from the project without any additional stress.

Sell Your House Fast For Cash In Pennsylvania

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Can I Get A Loan On An Unfinished House?

If you are in the process of building a home or buying an uncompleted house, you may be wondering if you can get a loan to help finance the project. The good news is that there are options available to help you finance an uncompleted home, but you’ll need to be aware of the potential challenges and limitations.

First and foremost, it’s important to understand that traditional lenders may be hesitant to provide a loan for an uncompleted house. Lenders are typically looking for properties that are move-in ready and have a proven track record of value. An uncompleted house may not fit that criteria, making it harder to secure financing. Be prepared for additional fees and higher scrutiny when closing on a loan for an unfinished property. Sellers, be prepared for your buyer to face all of these challenges if their offer is financed!

However, there are lenders who specialize in providing loans for uncompleted homes. These lenders understand the unique challenges of financing a project that is still in progress and may be more willing to work with you. They may also offer more flexible loan terms, such as interest-only payments or a construction-to-permanent loan that can be converted into a traditional mortgage once the construction is complete.

It’s important to note that interest rates on loans for uncompleted homes may be higher than for traditional mortgages. Lenders view these loans as a higher risk, and the interest rates reflect that. Additionally, you may be required to make a larger down payment to secure the loan, as lenders want to ensure that you have a financial stake in the project.

The Risk Of Buying An Under-Construction Property

Investing in under-construction property can be a tempting option, especially if you are a first-time homebuyer looking to save some money. However, it’s important to understand the risks involved before you make the final decision.

One of the main risks associated with buying under-construction property is the uncertainty of the final cost. Builders often estimate the construction cost at the beginning of the project, but the final cost can be significantly higher due to unexpected expenses such as delays, material cost fluctuations, and changes in design plans. This can result in a significant financial burden on the homebuyer, who may not have anticipated the added expenses.

Another major risk is the timeline for completion. Delays are common in construction, and there’s always a chance that your property may not be ready on the promised date. This can be especially challenging if you’ve already sold your current home or are on a tight timeline to move. The longer the delay, the more money you may have to spend on rent or temporary accommodations, which can be a major financial strain. Worse yet, the more interest payments on your construction loan or mortgage that need to be paid out.

When buying under-construction property, you also have to be aware of the risks of dealing with builders. While most builders are honest and reputable, there have been cases where builders have gone bankrupt, leaving the homebuyers in the lurch. Have you asked the seller of the unfinished property if their reason for selling was a flakey or disappearing builder?

In such cases, the homebuyer may have to bear the financial burden of completing the construction or may even lose their entire investment.

Another potential risk is the lack of control over the construction process. While you can provide input on the design and layout, you may not have control over the materials used or the construction quality. This can be especially concerning if you are investing a significant amount of money into your new build and want to ensure that it’s up to your standards. And when you buy a house already under construction, you simply cannot control what has already been completed.

In conclusion, buying under-construction property can be a smart investment if done with caution and careful consideration of the risks involved.

How Do You Value An Unfinished House?

If you’re interested in purchasing an unfinished house, it’s important to understand how to properly value it before making an offer. Unlike completed homes, unfinished homes require a different set of factors to be taken into consideration. Here’s a step-by-step process to help you value an unfinished house:

Assess the current state of construction: First and foremost, you need to evaluate the current state of construction. Is the house a shell or are the interior and exterior walls, plumbing, and electrical work already in place? Is the roof installed or are there still unfinished parts? This information will help you determine the amount of work and materials needed to complete the home.

Get an appraisal: It’s important to get an appraisal from a certified appraiser to determine the fair market value of the home. This is especially important if you’re planning to obtain financing. A professional appraiser will take into account the current state of construction, the cost of materials, and the potential resale value of the home.

Look at the cost of materials and labor: Once you know the current state of construction and the fair market value of the home, it’s time to estimate the cost of materials and labor needed to complete the project. You can do this by getting quotes from contractors and building supply companies. This will help you determine how much you’ll need to invest in the home to finish it.

Consider location and market conditions: Location is a key factor in determining the value of any property, including an unfinished home. Consider the neighborhood, school district, and proximity to amenities such as shopping centers and public transportation. Also, consider the current market conditions, such as interest rates and supply and demand for homes in the area.

Factor in potential profit: Once you have a good understanding of the cost to finish the home and the fair market value of the property, it’s important to factor in potential profit. You should consider how much profit you could make if you were to finish the home and then sell it. This will help you determine if the investment is worth it.

Steps For Selling An Unfinished House

How To Sell An Unfinished House

Step 1 – Determine Market Value

The first step is to determine the market value of your unfinished house. You can do this by conducting a comparative market analysis or by hiring a professional appraiser. This step is crucial because it will help you set a realistic price for your property. As described above, valuing an unfinished house is somewhat nuanced and different than valuing a finished product.

Step 2 – Clean & Organize

Before you market your unfinished house for sale, it is essential to “clean up the job site”. This will not only make your property more attractive to buyers but also demonstrates your diligence and organization as a seller and project manager. Buyers will enjoy having a clear and clean space to envision how the unfinished property could be completed.

Step 3 – Market The Property

Marketing your property is crucial to attracting potential buyers. You can use a variety of marketing channels, including online listings, social media, and traditional advertising. It’s important to highlight the potential of the unfinished house and showcase its unique features. Be careful about using a real estate agent to list the property – they are expensive and often don’t have the building and trade knowledge to assess the condition and find the right buyer.

Step 4 – Find The Right Buyer

Once you start receiving inquiries about your property, it’s time to start showing it to potential buyers. What you will quickly find is that cash buyers are going to be the only pool of buyers who will be suitable to purchase your unfinished home. As such, focus on marketing to them and pricing for a cash deal since financed offers are not going to close.

Step 5 – Negotiate Price & Terms

Once you receive an offer on your unfinished house, it’s time to negotiate the sale. You may need to be flexible on the price, especially if the buyer is planning to complete the construction themselves. It’s important to work with an experienced real estate attorney to ensure the sale goes smoothly.

Step 6 – Close The Sale

Once you and the buyer have agreed on a price, it’s time to close the sale. This involves signing the necessary paperwork, transferring ownership, and receiving payment.

Unfinished Houses FAQs

What is an unfinished house?
An unfinished house is a property that has been built but is not yet completed. It may be missing important components like plumbing, electrical work, drywall, and flooring. It may also be in various stages of construction, from just a foundation to partially framed walls.

Can I sell my unfinished house as-is?
Yes, you can sell an unfinished house as-is, but it may be difficult to find a buyer willing to purchase it in its current state. Buyers may be hesitant to take on an unfinished project, especially if it requires significant work to complete. However, some buyers may see the opportunity to customize the property to their liking and be willing to take on the project.

What steps should I take before listing my unfinished house for sale?
Before listing your unfinished house for sale, it’s important to make sure it’s structurally sound and meets all building codes. You should also consider finishing some essential components like plumbing and electrical work to make the property more attractive to potential buyers. Additionally, you may want to hire an appraiser to determine the property’s value as-is and with estimated completion costs factored in.

How do I price my unfinished house for sale?
Pricing an unfinished house for sale can be challenging since it’s not a typical property that’s move-in ready. You should take into account the costs to complete the property, including materials, labor, and permits. You may also want to research the prices of similar properties in the area to get an idea of what buyers are willing to pay for unfinished properties.

Should I work with a real estate agent to sell my unfinished house?
Real estate agents are experts at selling finished homes. Although their approach and perspective can be practical and useful, your best resource for selling an unfinished house is going to be a local investor or cash buyer.

The findings and information in this article are focused on Pennsylvania, however, it is applicable in many locations nationwide!

Best Way To Sell My Unfinished House Pennsylvania

Signature Properties provides the easiest and simplest way to sell your house in Pennsylvania. We buy houses through fair and honest cash offers.🙂 Whether you are avoiding the bank from foreclosure, coming into an inheritance, going through divorce or any other situation – we have real estate solutions to get you the outcomes you desire when you sell your house to us. We help homeowners with costly home repairs, mounting liens, code enforcement violations and even vacant homes. Are you trying to sell your house in surrounding areas or other counties and states near Pennsylvania? We buy properties in New Jersey and Delaware as well as many other towns! In fact, we buy homes all over Pennsylvania. Come find out why selling an unfinished house is more common than you think!