Do you have an abandoned house? Have you considered selling it?
The housing market in the US is going through an interesting phase. Cities are plagued by abandoned properties. Across the nation, nearly one out of every 63 residential properties is vacant. For example, while 2015 saw the building of several hundred thousand new homes, it also saw over a million residences left vacant.
People are neglecting already existing structures. About 1.6% of all US homes are sitting vacant.
If you’re abandoned house isn’t sitting vacant and not monitoring, now may be the right time to move on it from. Selling is a great option.
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Reasons To Sell An Abandoned House
Maintaining or owning an abandoned house is risky and comes with very real dangers.
Crime Magnets – Illegal activity happening in vacant lots and buildings make up a large share of overall crime. In Chicago, over 2,600 crimes were reported in abandoned lots and buildings in 2006, an increase of 48% compared to 2005, even when crime rates were falling elsewhere.
According to the National Vacant Properties Campaign, compared to blocks without abandoned properties, those with vacant unsecured buildings saw 3.2 times as many drug-related police calls, 1.8 times as many calls related to theft, and double those of violent calls. Crime rates were twice as high on abandoned blocks. Neglected houses are also risk human trafficking and similar concerns.
Health Effects – Many factors affect public health. This includes neighborhood safety and the conditions of where people live. Substandard housing and abandoned properties all contribute to several health problems.
According to one study, there is a correlation between living near abandoned buildings, vacant lots or buildings with public health problems such as mental health, higher rates of chronic illness, and homicide.
Squatters Problem – Squatters can actually secure a right to legally occupy an abandoned property if they establish themselves and take care of it. This is legally gaining property rights through what is known as adverse possession. As the property owner, you could end up losing the property altogether.
Property Condition Deterioration – Houses without proper maintenance suffer property defects on a week to week basis. This even more true in the case of abandoned houses as nobody is monitoring the property. Even if you keep delaying a sale without rectifying the vacancy issue, you stand to lose money in the long run.
On-Going Costs – Holding any property has costs. On-going utilities payments (if turned on). Government taxes. For abandoned property, there is a high likelihood of city violations issued as a result of unsafe structure, illegal use, high grass, among many other issues. These fines and taxes grow and grow if not paid. Keeping the abandoned house drives up your monthly bills, and ultimately if the taxes/violations are not paid, the government will re-possess the property altogether.
How To Sell An Abandoned House
You want an abandoned house to sell fast . . . here’s how:
Step 1: Assess Property Condition
Take time to investigate factors why certain properties failed to sell in your area. Is there a common pattern to their prices? To get a realistic feel of how prices changed over time, make a comparison of the starting price and what the property actually sold for. If your property is not attracting buyers or is receiving negative feedback, consider revising your sale price.
Assessing your property is similar to a home inspection by an inspection expert. When selling (or even buying) a house, there are lots of facets to consider and check which makes it important to engage a professional home inspector.
Step 2: Set Asking Price
Setting the asking price may be the most important factor when selling your abandoned home. A real estate professional may be able to provide guidance on an appropriate asking price. This can include an investor, real estate agent, or appraiser. Access to data gathering systems is the key.
Be realistic and remember that abandoned houses come with a host of problems … someone hasto get rid of the squatters or make some important repairs, so don’t expect “top dollar.”
Step 3: Decide How To Sell?
Selling your abandoned house to real estate investor has numerous advantages.
First, it is a fast transaction as they offer cash. Secondly, it is usually “as is” basis and you incur no realtor commission. As the seller, you do nothing more regarding the property. By selling directly to a real estate investor, you save time and money. The flipside is that you less leeway if you are asking “top dollar” or above market price.
House Heroes LLC is a professional cash buyer in Florida. We buy property, in among other places, Miami, Fort Lauderdale, and Palm Beach. Give us a call at (954) 676-1846 for a fair cash offer on squatter property.
The advantage of selling on the MLS listed with an agent is that your property benefits from maximum buyer visibility. The real estate agent will be working and doing everything for you. The visibility you get from the MLS listing, however, comes at a cost as you will have to pay the agent commission fee.
What To Do About Squatters?
As noted above, one of the biggest problems with abandoned houses is when squatters move in. So long as they are in compliance with specific legal requirements, many US states like California, do legally allow squatters to gain possession of the property. They could end up gaining access to the entire property or a right-of-way.
Here are your options when dealing with squatters . . .
One of your best options is to “Sell As-Is” as it comes with obvious advantages. Best of all is that you will not have to worry about anything regarding the squatters as you leave everything to the buyer.
To completely avoid the squatter situation on your abandoned or vacant property, ensure it remains secure. You can have a reliable property management company regularly checking the place. If they are already making themselves at home on your vacant or abandoned property, you could try calling the authorities, hiring someone to throw them out, or file an unlawful detainer lawsuit.
Explore the available legal options once a squatter has left especially in case they left any property behind. Find out what the law allows you to do and not to do with such property because you need to adhere to the local laws. Remember that in some places, there are squatter legal rights in place.
Evictions, whether of normal tenants or squatters, can be time-consuming and costly, so pray that you never need to do one. The best way of protecting yourself is by carefully screening the tenants before they move in and by altogether stopping squatters from ever moving in.
Regardless of your squatter situation, before you begin the eviction process, remember the following eviction tips:
- Master the eviction laws
- Have a valid eviction reason
- Try reasoning with the squatters
- Give formal eviction notice
- File eviction notice
- Prepare for & attend the hearing.
Finally, whenever you are selling an abandoned house, remember that price flexibility is paramount during the sale process. Keep things in their right perspective and always remember the reasons why you want to sell your abandoned house.
We Buy Houses!
Just Fill Out This Form For Your FAIR Cash Offer.
2 responses to “Selling A House That Has Been Abandoned”
Do you only buy homes in Fla? I have one in PA
Hi John – we do primarily focus our real estate investments in Florida. However, if the situation makes sense for us in the seller, we also consider property anywhere in the U.S. Generally, the further out from Florida, the more we would be looking for rental property (fix-and-flips can be difficult from a distance). Feel free to give us a call at 954-676-1846 if you’d like to go over it. Thanks!