The real estate statisticians at Realty Trac are reporting a growing number of short sales of unfinished homes. Homes that would ordinarily hit the market in the $200,000-$300,000 range are coming in as short sales because the prospective owner has backed out of a new home build and the builder needs a short sale buyer to come in and finish the home.

For the most part, short sales had been reserved for existing homes but even home builders are turning to shorts sales as a way to preserve their outlay. Often, unfinished short sale homes enter the market in similar condition to homes that have been trashed by the former occupant, except that these homes have never been lived in.

Rather than being “damaged goods” these unfinished short sale homes represent an opportunity for the buyer who can finance the construction and finish work that remains on the home. Once construction is complete, the short sale investor can bring a brand new home to the market and reap the benefits of almost instant appreciation.

For short sale investors, unfinished new construction represents yet another opportunity in a short sale real estate market that’s already brimming with potential. The National Association of Home Builders says that its membership has approximately 10 months’ supply of completed, unoccupied construction in inventory. A short sale, unfinished construction project could allow the savvy investor to finish the project and bring a finished new home to market at a lower selling price than comparable real estate, while still allowing the investor to make a good profit.

If you’re looking for short sale real estate with excellent profit potential, unfinished short sale construction should be high on your shopping list!

Photo Credit: Great Valley Center, via Flickr