A condemned house is a real estate term that has been used in the industry for decades. It can be difficult to understand if you’re not familiar with real estate terminology, so we’ll define it here. A condemned house is one that is no longer habitable and needs to be demolished or repaired before it can be occupied again. Sellers should know how to identify these houses and what they need to do if they find themselves in this situation.
What makes a house condemned?
A home is declared condemned if the municipal government determines it untenable for living in. When a property is condemned, occupants are forced to relocate, rehabilitate, or give up their house to a third party. The government may also take control of a home and pay market value for it as part of its right to seize property.
Because there are so many variables to consider, a home might be condemned for any number of reasons. Here are some of them:
- Using low-quality materials
- Structural damage caused by extensive termite damage
- Mold and mildew are common hygiene concerns, as are other issues such as dampness.
- The utilities (water, heat, electricity, and plumbing) have been turned off.
- A house is no longer safe or structurally sound due to weather damage or infestation.
- After two months, most homes on the market are either abandoned or boarded up. Local government typically condemns these properties after two months.
- Inspectors label a property as dilapidated after local authorities rule it unsanitary, which implies there are no obvious dangers.
When a property is condemned, it becomes the responsibility of the owner to either repair it, relocate out, or sell. Because you want to sell a condemned property, keep in mind that there’s a catch. Condemned houses can only be marketed as land rather than as an entire house for sale on the market.
Is it possible to restore a condemned home?
Yes. While condemned properties are the last chance for occupancy, a homeowner may restore a condemned property and make it liveable once again. Before taking any further action, owners should consider if the value of the repairs is greater than the home’s worth. To figure out what comes next, work with an expert contractor and appraiser.
How can I get my home declared condemned?
To get a home “uncondemned”
- Narrow down your options by consulting with your local building authority and securing a rehabilitation or repair agreement.
- Repairs should be completed.
- Have the local government authority check your home for health and safety violations, verify that repairs have been completed, and reverse the home’s status if it has been rehabbed.
How much can I get for selling a condemned property?
You may still receive fair compensation for a condemned house if it sits on a desirable lot or location, or has the potential to appreciate, no matter who the buyer is. A condemned property is generally considered less valuable than vacant land because it entails either repairing or razing the structure. Before remodeling a condemned property, think about whether the cost of repair.
If I can’t sell my condemned property, how can I get compensation for it?
By way of a pro-tanto award. If your house is labeled condemned and you can’t sell it, the local housing authority may take it. When this happens, the government would give you a pro-tanto payment based on the property’s market value. Otherwise, you have no other alternatives than to fix up or abandon the property.
If you have a condemned property on your hands, don’t lose hope. There are options out there that can help get rid of this real estate dilemma and get you some cash in return. One way to do so is by reaching out to an expert realtor who understands how it all works.
Is it possible for a buyer to obtain a mortgage to acquire a condemned property?
A buyer cannot obtain a mortgage on a condemned property; instead, they can only borrow money from “hard money lenders,” who are not subject to the Securities and Exchange Commission and are only answerable to the Federal Reserve Board. To purchase a condemned property, the buyer must deal directly with you, the owner. Unfortunately, purchasers have just one option.
If you own a condemned property and want to sell it fast for cash, please contact us. We’ll provide you with an offer and relieve you of the burden of dealing with it.