How To Get A House Condemned

A condemned building has been deemed unsafe to live in by the local government. Any occupants of the property will need to leave the premises within a set amount of time — typically within 30 days. The issues within a condemned building will need to be fixed before the local governing bodies will allow people to move back in.

If you are a potential homebuyer, you may come across condemned buildings in your search. Learn about the different factors that cause a building to be condemned and what it takes to buy such a property.

What can cause a house to be condemned?

There are multiple reasons why a house can be condemned. These are caused by the upkeep of the house, natural disasters, and the overall structure. A home can receive a condemned label because of one issue or multiple, depending on its current state. A few reasons for condemnation include:

Infrastructure failure
Structural damage from weather catastrophes
Unsanitary living conditions
Black mold
Termite damage
Unsafe building materials
Fire and water damage

For example, a single house in a nice neighborhood could be condemned because it has termite damage and unsanitary living conditions from the people living there. Conversely, multiple houses on one street could be deemed unsafe because of local sinkholes that could swallow up their properties.

Houses are also condemned if they have been abandoned and boarded up for a long period. They can also be condemned if they lack utilities like water and electricity. These are essential for residents to practice basic hygiene and to stay safe in extremely hot and cold months.

Can you sell a condemned building?

If you are the owner of a condemned property, you may want to sell your house. However, this isn't always easy. Some local governments won't allow you to sell a condemned property, even if you know someone who would make the necessary repairs. If the property is condemned, you might only have a short time to make any repairs or sell it before you need to evacuate the premises or the home is seized by the government.

If you do live in an area where you can sell a condemned property, be transparent about its condition. Bring in investors who specializing in rebuilding or razing condemned homes. These will likely be cash buyers who don't need to secure financing and who can buy your property quickly.

Your other option is to make the repairs yourself. This is easier said than done in most cases. While you can remediate termite damage or remove black mold, some structural issues unfixable. The house will have to be completely destroyed.

Sometimes, you may be better off bulldozing the property and selling the unit as a parcel of land. This could be more appealing to developers who can start from scratch and don't have to worry about the condemned house.

Talk with a real estate consultant to form a plan of action and sell your condemned property. They might have specific advice for whether you can make repairs or whether you should hand the property over to someone else.

Can you buy a condemned house?

It is possible to buy a condemned house—and they often come at steep discounts — but there are also drawbacks to investing in this type of property.

First, there will be more regulations to overcome in the buying process. You will need to check for any liens on the property that the previous owner never paid, like property taxes and other bills. You will need to work with the lenders who issued those liens to clear them so you don't inherit the debt.

Lenders might not be willing to finance the purchase of the property. Even if you plan to rebuild the house from the ground up, some lenders won't take the risk. You will need to either finance the purchase with cash or work with a private lender who understands your goals.

Finally, you will likely need to clear the purchase with the city. You may need to prove how you plan to remediate the condemned house to make it safe again.

However, once these barriers are cleared, you should be able to purchase the property and start improving it.

Pros and Cons of Buying a Condemned Building

Just because you can buy a condemned building doesn't mean this is the best option for your home buying experience. Along with the lengthy process to get approved for the sale, there are some drawbacks to invested in condemned units.

The main issue is that you will need to cover the costs to repair the home, so it is livable again. Sometimes, the house may need to be completely destroyed and built from the ground up. Even if you walk through the property and identify potential issues, you may discover new problems as you start remodeling that can drive up your costs and push you over budget. These new repairs can also be time-consuming.

While you are remodeling your home, you will need somewhere else to live. This could mean renting an apartment in the short-run or paying two mortgages until the renovation is complete.

That being said, there are multiple opportunities for buyers who want to invest in condemned buildings. First, you can get a deal on the property. Lenders want to recoup any lost funds they can while local officials don't want dilapidated houses in their cities. You could get a nice piece of land in a good area by looking at condemned properties.

Furthermore, if you have the ability, you buy a condemned building as a second home. Oftentimes, buyers take on these properties as pet projects to either restore a historic landmark or to practice home-flipping as a hobby. This takes the pressure off of you to renovate quickly so you can move in.

Buying a condemned building can be a great financial opportunity. However, you still need to be aware of the risks and have back-up plans to protect your investment.

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Find an UpNest Agent with condemned building experience.

Find a Realtor With Condemned Building Experience

If you are considering buying a condemned home, work with a Realtor who understands the bureaucracy that comes with it. The right real estate agent can help you work with local officials and might even recommend contractors who you can hire for your repairs. They can make the process smooth so you can focus on restoring the building.

At UpNest, we strive to pair each buyer with the best Realtor with their needs. With your criteria, we can sort through thousands of agents to find the best one for you. Don't work with someone who is unreliable or inexperienced when buying a property. Find a Realtor who can be your partner throughout the whole process.