Abandoned homes are real estate properties that the original owner no longer holds possession of. These are usually bank-owned, and since the bank wants to recover their dues, they are often sold at discounted rates. This means that buying an abandoned home can help one save a lot of money. That said, it’s not easy to find abandoned properties for sale, as they are not widely advertised, unless one knows how to look for them.
Look around in the neighborhood
When looking for abandoned properties for sale, where do you start? Ideally, you must begin searching in the nearest place: your neighborhood. Go around looking for properties that seemingly look abandoned. It’s a straightforward strategy, but, at times, it may be hard to understand the difference between an empty home and an abandoned one. Look for structural problems, absence of automobiles in the driveway, faded or chipped paint, and unruly weeds or grass. These are prevalent signs of abandonment.
Ask people familiar with the place
Ask the delivery person or the postmaster if they have come across any abandoned properties for sale on their routes. They will most likely have an idea because most of them pass through one or more abandoned properties every day as they move from one place to another. Inquire with them and request them to be observant of properties that look abandoned or deserted in their next round of deliveries or mail.
Visit the county clerk’s office
The government maintains a record of property ownership. So, you can easily find abandoned or bank-owned properties by visiting the county clerk’s office. They may also have documents about the legal owner and their contact details, which can help.
Keep an eye on property auctions
The government seizes multiple real estate properties because of federal law violations. Usually, these homes are sold at local property auctions. So, if you’re looking for abandoned properties for sale, keep an eye on these auctions on the internet or other sources.
Inquire with banks for homes under foreclosure
Homeowners who face foreclosure or bankruptcy tend to abandon their homes, and legal processes take years. So, visit banks and ask about the bank-owned properties in the process of repossession or foreclosure.
Consult local real estate professionals
You can also find abandoned properties for sale via local realtors or real estate agents. They usually know of unoccupied and abandoned properties in the vicinity because many don’t prefer investing in a house adjacent to them. Real estate agents can also give you a house tour and advise you regarding legal matters.
Track the owner to see if they want to sell
When a property owner defaults on the mortgage, the house is repossessed by the mortgage lender or goes into foreclosure. So, once you find a property you’re interested in, question the owner about the rights and ask if they’re willing to sell.
Review your finances
If you want to buy abandoned or bank-owned properties, ascertain the amount you can realistically afford and get your finances in order. Apply for a pre-approved loan if you don’t have the money. But don’t forget to account for the cost of obtaining the loan and other expected expenses. Like a traditional home loan, you’ll have to set aside a sum for the closing costs and the down payment when you shop for abandoned properties for sale. Having a pre-approved loan gives you the power to move in quickly after finding the property you wish to purchase.
Factor in the cost of renovations
Beyond the property’s purchase price, also consider the cost of renovations or repairs to make the space livable. Abandoned properties usually have damaged floors, plumbing issues, and other structural problems, making them hard to move into immediately. The repair costs can vary from one property to the other depending on the extent of the damage. So, leave some wiggle space in your budget for contingent expenses associated with the home acquisition.
Inspect the home thoroughly
Abandoned homes typically face some degree of disrepair. So, before buying the property, assess it. Note that inspecting a home isn’t easy, and you may need the services of a professional inspector. Also, most people who sell abandoned homes don’t let you perform a full inspection, wherein you learn about concealed shortcomings or defects. So, there’s a good possibility that you’re buying a lot of unknowns.
Buying an abandoned property is an excellent way to get a home in your choice of location for less money. The more you do your homework, the less likely you run into problems. But remember that there’s no guarantee of the property being issue-free, regardless of how much money you put into it. Contacting tax authorities, neighbors, and previous owners and conducting a full inspection can prove helpful. In the end, have a risk appetite, and be cautious.
