Yes, you can sell a condemned house, but you should not expect to get top dollar unless the land is worth a lot of money. Since a condemned house cannot be lived in, the buyer will have to either invest a lot of money in making repairs to the home, or tear it down entirely. So why not repair it yourself and live there?
For the most part, repairing a condemned house can be more trouble than it’s worth if you plan on living there. And if you choose to live on the condemned property after rehabbing it, be prepared financially as the continuing cost of having to repair a condemned home never truly goes away. That is why it is almost always better to tear down and rebuild, or to sell a condemned house rather than own it.
Selling a condemned property can be a great way to walk away from an unwanted inheritance, or a bad investment that you no longer want to develop into a home for yourself.
In fact, there are situations where the land may be worth enough to entice a real estate investor to purchase your property for a profit. For example, land located in a highly desirable location or with access to a ton of amenities, including road and water access, may fetch a fair price on the market or as an off-market listing.
But before you make a decision to sell your condemned house or keep it, lets look at common questions about condemned houses so you can compare them to your current situation.
How Does a House Get Condemned?
Houses get condemned by your local government once the government determines that the home is no longer safe to live in. This typically occurs if a building fails to pass local safety codes at inspection.
Some common reasons a house may be condemned include:
- Outdated or hazardous electrical system
- Broken plumbing system
- Structural damage caused by extreme weather
- Termite damage
- Black mold
Most condemned homes do not occur due to one single thing either, and can include a compounded mix of different hazards that have popped up over the years. Since many older homes are subject to these hazards, it’s not as uncommon as you think for a once ordinary home to become a condemned house.
If your local government agency has condemned your house, you will either be forced to repair the home back to living condition or sell your house.
Either way, you still have two options to choose from. Keep it and eat the costs, or sell your condemned house and have some money in your pocket to move on. Let’s look at the second option.
Who Buys Condemned Houses?
People that buy condemned houses include:
- Real estate investment companies (we buy houses companies)
- Real estate investors (house flippers)
- Wholesalers
- Developers looking to buy multiple plots for a larger building
- Business owners that need a tax write-off at the end of the year and expect the land to increase in value
The reason a regular home shopper may not be in your list of buyers is that most mortgage lenders will not give out mortgages for condemned properties. That leaves you with cash buyers like the people and businesses above.
While you may not get the full value of your property, the land may be valuable enough to get you a good portion of what your property is worth back to you. And that leads us to the next question, why would someone want a condemned property?
Why Buy a Condemned Home?
Buying a condemned house can offer great returns if the property is located in an up-and-coming area. Real estate investors plan on fixing the property up whether it happens this year or in five when the market is booming, and because they aren’t living in the home they’ll sell it for a profit. Alternatively, investors may tear down the condemned house and hold onto the land to sell it once prices go up in the area. Additionally, they can flip the land and the property to another investor if they know there is lots of demand brewing in the area.
Regular home buyers may also see the neighborhood is one that will become a place they want to live, and if they buy your condemned house now, they can get a good deal on the property and fix it up over time for when they’re ready to move in. Then when they’re ready to move to their next home, they can sell it for an even higher amount, if they property and neighborhood does in fact go up in value.
Now the big question, should you sell?
Should I Sell My Condemned House?
Yes, you should sell your condemned house if the cost of repairs is too great for you to handle or the price will be more than you can afford once the house is no longer condemned. There will be the cost of repairs, paying for a hotel or rental place while the fixes are being made, money for upkeep and potentially rising property values. If you can afford this, then keep the house. If this is going to be too much, sell it.
Yes, you can sell a condemned house, and it is likely a good idea if you want to walk away from a bad situation. If you have the resources to fix the property up and keep up with the neighborhood, you may want to hang onto it and sell in the future when its worth more. And if you’re looking to sell your condemned house for cash, we want to talk to you. Call us at [acf field=”global_phone_number” post_id=”options”] for a fair-cash and hassle-free offer.