So..What is an abandoned house?
You don’t have to travel far to find an abandoned home, houses can be abandoned for several different reasons including foreclosure, probate or code violations. When houses get caught in limbo and cannot be sold or rented out they can quickly go into disrepair causing further difficulties when it comes time to sell.
Things to know about abandoned homes
Before buying an abandoned house you should be aware of some of the risks associated with it. While abandoned houses can be purchased for cash and at a great value they typically act as a magnet of illegal activities such as drug use with more robberies happening near them according to Association of Community Organization for Reform Now (ACORN).
Along with this, you will need to deal with potential squatters and depending on your local laws may have to deal with going through an eviction process if the squatters have rights.
Buying an abandoned home, everything to know
Buying an abandoned home is not as easy as going through a realtor or going to Zillow. You will need to do a little more leg work or use a wholesale house company such as Gold Leaf Home Buyers if you want to find an abandoned home.
1. How to find an abandoned property
Finding a great abandoned investment property is one of the most challenging aspects of this whole process. Following some of the steps below are good options for your search..
Drive around and look in person. Arguably the most straight forward method but sometimes the best way to find a hidden gem is to get out there and look for yourself. Look for unkempt yards, boarded windows and distressed paint.
Ask your county clerk’s office. Your county clerk is a valuable resource and has records on property ownership that can help you find abandoned houses.
Call Realtors & HOAs to inquire. While it’s rare that a realtor would be selling an abandoned home it’s likely that they know of abandoned property as they typically have an adverse effect on neighborhood values. It is in the best interest of Realtors and HOA’s to have investors purchase abandoned homes in order to raise neighborhood values.
Check Local auctions. Often homes that have been seized by the city or government will be auctioned off. This will typically happen due to code violations or tax liens.
2. Ensure The Property Is Abandoned
Often times a house that may look abandoned is actually just vacant, meaning the owner does not live there and likely has not for a while but still owns the property. This will typically happen due to the owner being out of state or country and not wanting to repair the house or keep up with maintenance in order to sell. In order to verify this, you can ask neighbors or talk to the county clarks office.
3. Identify And Contact The Owner
The next step is to figure out who owns the property and get in contact with them, this can be done by checking your county’s tax assessor website. Typically a fee is involved in pulling these records.
4.Inspect The Home And Make An Offer
Once you get in contact with the owner setup a time to inspect the property. Look for things such as foundation issues, mold, potential code violations. When making an offer you need to factor in repairs, recent sales in the neighborhood and time it will take to sell the property. After you have an idea for how much you are willing to pay make your offer on the property.
Top 6 Cities for abandoned homes.
Below are the top 6 cities for abandoned homes according to a report by RealtyTrac .
Flint, Michigan – 7.5% vacancy
Detroit, Michigan – 5.3% vacancy
Youngstown, Ohio – 4.4% vacancy
Beaumont – Port Arthur, Texas – 3.8% vacancy
Atlantic City, New Jersey – 3.7% vacancy
Indianapolis, Indiana – 3% vacancy
Buy from a home wholesaler
If you do not want to both with all the leg work and negotiating of buying an abandoned home you can skip all of that and buy a distressed property through a home wholesaler. Gold Leaf Home Buyers offers wholesale services, we have several homes available in the Tampa area available for home investors and flippers, contact us today.