How to Buy a Condemned House

For some, the allure of buying a home is more than the sum of its parts. It can be a very emotional experience, after all, it’s where you raise a family. This being said, what happens if the property in question is in a poor state? Or is it a condemned building?

What are the condemned house rules? Before we go any further let’s define what are grounds for house condemnation?

What defines a condemned home?

For a home to be considered condemned it needs to tick off a number of aspects and these can vary widely. When it is condemned, a local government agency will seal up a house to ensure no one squats on the property. But what does it mean when a house is condemned?

For a house to be condemned, it needs to be deemed unfit to be lived in by a government entity. 

This means there needs to be a sign that the building is unworthy of habitation and it is in violation of housing codes. 

One building code violation is visible signs that the property is structurally unsound. This can be caused by a number of reasons. Such as: 

• Floods

• Storms

• Fire

• Bad construction

Also, some structural damage can be considered a health hazard. 

In these homes, there are visible signs that there is black mold, which causes respiratory health issues. Long-term rodent infestation is another reason for condemnation, as well as sites where there are signs of industrial toxins, or if there is evidence that illegal drugs were produced on the property. 

Another reason is a simple fact it’s been vacant for extended periods of time. If the property has been uninhabited for 60 days it can be considered abandoned. With properties that are left unoccupied, it can be common that the utilities have been disconnected a number of times.

The last reason has nothing to do with the condition of the home. If your property is in the path of a large civil project, the government can declare your home condemned and seize it by the power of an eminent domain. In this last situation, the government will make an effort to compensate you for the condemnation of your home. But in most cases, you’ll be forced to take a lowball offer. In this situation, it is strongly advised to recruit a qualified real estate lawyer. 

As might be evident by now, in most of these cases the property can look perfectly ok on the outside. And in the case of black mold, it can be contained to just a number of rooms. 

If this were you, what happens if your house is condemned? 

The owner of the condemned home is often allowed to retain the title for the property in question and may be given the opportunity to clean up and repair it. Once these renovations are completed, the owner can appeal the condemnation, and have the building declared fit for occupancy. 

While we’ve investigated what it takes for an agency to proceed in condemning a house, can you buy one? 

Can you buy a condemned home?

The short answer is yes. And, for those wondering, “Can you sell a condemned house?”, it’s also a yes. 

Before you stride in with an offer, there are a few aspects to consider. 

Check the laws in your area

As with so many aspects in the US, each state’s laws differ. This means you will need a real estate lawyer to help you navigate the landscape. 

Also, we recommend a realtor with experience in the field. While the process is very similar to when you purchase a normal home, the biggest difference is you’re buying the property from a bank or government body. 

If the home has some tax liens on it you’ll be doing the transaction with a tax authority. Then again you could be buying the property from the U.S. Department of Housing and Urban Development (HUD), or a code enforcement entity. 

In regards to outstanding taxes, you may be liable to pay outstanding property taxes if the building is condemned to foreclosure. It’s always important to do your research on the building as condemned buildings have owners with skeletons in their closets. 

Properties can also be deemed condemned if the owner has stopped paying property taxes and hasn’t responded to threats of tax liens and other fines. 

As a rule of thumb, most local governments want to ensure that these properties find new owners as soon as possible! 

It’s always in your best interest to do research into whether there are any violations and liens attached to the property’s title. Otherwise, you could be in for a long ride. 

The next step is to secure funding. 

Funding

Financing the purchase of a condemned building is tricky for a number of reasons, namely, you need cash. 

Most lenders will base their mortgage against the value of the property, which is attained in a process set out by appraisers. In the case of a condemned building, it’s near to impossible for them to gauge the value. This means most banks will not assist you with the purchase. 

What this means is you’ll need to locate a private lender. 

Or access some large lump sum of cash. 

The majority of condemned homes will be sold via an auction. These auctions often happen off-site and require cash payment in full on the same day of the auction. 

The next step is to hire an investigator. 

Inspection

As stated, most condemned buildings will be sold via an auction process, which doesn’t allow the buyer to view the property in person. 

This is problematic for a number of reasons, namely having to take a leap of faith – do you believe there are no burst water mains beneath the floor? It’s for this reason why, if you have purchased a condemned home, that hiring an inspector is vital! 

They will be able to tell you if you’ve purchased a lemon or not. Also, it’ll give you an idea of how much work is needed to make the abode habitable. 

While buying a condemned home is risky, it has the major advantage of probably being cheaper than other homes in its league. 

But then again, what if you’ve been stuck with a condemned building and are struggling to make it habitable and marketable? 

You need a cash buyer who wants your home as-is, and that buyer is House Buyers of America! But as you may be aware, there are loads of homebuyers, or iBuying services. What sets us apart? 

Why trust House Buyers of America to buy your home? 

Since 2001, House Buyers of America has bought and sold homes in Maryland, Virginia, and Washington, DC. During this time we’ve innovated the real estate game, as well as impressed thousands of customers. 

It’s this longevity and success that sets us apart. And if you don’t trust us, you can trust our hundreds of references. Not many companies in our industry are as well respected as House Buyers of America. 

Currently, we have over 100 reviews with 5 stars with testimonies from a select few! Most of these reviews highlight that House Buyers of America will: 

• Sell houses fast

• Pay cash for homes

• Treat you with the utmost respect

House Buyers of America has also earned an A+ rating with the Better Business Bureau (BBB), which is an organization that helps United States consumers find businesses they can trust. 

When you’re selling your home, you want to be 100% sure that you can trust the company you’ve contracted to help you. And nothing will put your mind at ease more than reading our clients’ reviews of our services. 

And because our clients have spoken about us with such fondness, we’ve been asked to contribute thought leader comments to various publications. 

But how does House Buyers of America work? 

How House Buyers of America works

We’ve ensured that every step is simple, quick, and efficient. That’s why our first step is you approaching us. Simply give us a call at 855-659-3289 or use our online form to get started!

Within 10 minutes, if the call is made during office hours, we will have a fair cash offer for your property. 

Once we’ve gathered your information, we will arrange a time for us to come by the house to finalize that important paperwork. 

And once you’ve signed on the dotted line, the money will be in your bank account in a matter of days. 

It’s never been easier to sell your house fast.