Is it worth buying a condemned house?
- May 6, 2021
- No Comment
If you buy condemned properties the right way, you can have a good real estate investment which will generate positive cash flow. However, the greatest risk of buying condemned property for sale is that the cost of making repairs could end up being much higher than the property’s value.
The biggest risk in buying a condemned home is that the cost of restoring it could be much higher than the value of the house itself. “If it was due to severe structural or repair issues, you might end up losing a lot of the value in the cost of rehabbing the property itself,” Edgar says. For more information, Please Click Here
Why Property is Condemned
Having multiple code violations is the primary reason a house will be condemned. A local government agency will seal the house and post a sign that forbids anyone from living there. There are a few other reasons a property may be condemned.
- Water, electricity and gas have been turned off.
- The home has been unoccupied for 60 days or longer.
- The home is extremely dilapidated or damaged.
- There are safety hazards in or near the home. The property has been seized by the government under eminent domain. This is a law that allows local, state and federal government agencies to buy private property for fair market value in the name of the public good.
Many local governments allow owners to retain the title for their property when it’s condemned for code violations. The owner is given the opportunity to clean up and repair the property and then appeal to have the property inspected and declared fit for occupancy. If the repairs are not made within a specific period, the local government will seize the property.
Fix the Condemned House and then Sell
Can a Condemned House Be Fixed?
Can you fix a condemned house? Maybe you can — it will depend on the level of repairs needed and the time and money that you have.
A house can be condemned for only one or two items if they haven’t been corrected. If the condition and the needed repairs are manageable, then you should be better off making repairs.
Are you allowed to fix the house once it’s condemned? You can probably work that out. The local authorities would prefer that the house be fixed and inhabited. This is good for the community and the local economy.
But, as we’ve said before, the reality is that by the time the process has gotten all the way to condemnation, you have already been given a lot of time to arrange to make repairs. If you’re making progress, then the local authority will probably give you more time. If you’re not getting anywhere, then they probably won’t.
If you haven’t done anything at all by the time your house is condemned, you probably don’t have the money to make the repairs and you no longer have the time.
This is why most people faced with this situation don’t or can’t repair a condemned property.
Can You Sell a Condemned House?
Typically, a condemned property cannot be sold as a structure. The property can usually still be sold as land, though the value is actually reduced due to the buyer expense of tearing down the condemned house and hauling it away, making it difficult for a buyer to get a mortgage loan. In some circumstances, you may also be able to find a buyer with a hard money lender to back them up.
But by far, your best option is to sell the property quickly, before the structure becomes officially condemned and you lose control of what happens to it. VIP Keyz buys houses in any condition and offers you a same-day cash offer without ever needing to make repairs. Move out and move on before your home is officially condemned.
Leave a comment