When a person gives up their legal rights to a house due to financial difficulties, natural disasters, or other reasons, it is declared abandoned. Abandoned homes for sale are usually cheaper than new homes, helping people save. Such properties are usually sold off by the original owner or the banks that have foreclosed them. One may be able to find them easily by searching online or visiting the county clerk’s office.
Benefits of buying abandoned homes
Choosing an abandoned home over a new one has several benefits. One must learn about these benefits before buying the property.
Low cost
The biggest reason why abandoned homes are so popular is their lower cost. Such homes are usually listed well below market value, which helps people buy them, even when on a limited budget. That means one can get a bigger house for the same price. Sure, one may have to spend some money to refurbish the property, but it is still a great deal overall.
Some homes are abandoned because people can no longer repay the loan taken to buy them. In such cases, the lender or bank takes over the home and sells it to recover their money. Since banks want to sell the property as quickly as possible to recover losses, they list it for a lower price to attract buyers. One can take advantage of this to get a home at a lower rate.
Less competition
Many worry about the expenses of refurbishing abandoned homes and decide not to buy them. That means one will face less competition while purchasing these homes than other real estate options. Less competition gives one an upper hand in negotiating the terms of the agreement, which is a massive benefit. Once a person buys the property, they can then think about how to keep the renovation expenses to a minimum.
Opportunities for customization
In most cases, owners who abandon homes leave them in a run-down condition as they do not have the financial means to repair it. Home buyers can use this to their advantage. While repairing and renovating the house, one can customize it as required. For instance, they can paint the walls in their favorite colors and install the lighting fixtures they like the most. Doing so can turn the house into an ideal rental property or a home where they can stay for many years.
Ways to find abandoned homes for sale
While one’s neighborhood may have abandoned homes, finding them may take effort. Driving through one’s neighborhood and looking for cheap abandoned homes for sale nearby is a good place to start. If that does not help, one can use other methods.
Visiting the county clerk’s office
Government offices usually maintain a public record of real estate ownership. These offices can let one know whether any property is abandoned in a region. On finding an abandoned home, one can ask a local tax assessor to check whether the property taxes for the home have been paid in a while or not. If the taxes have not been paid in a while, it indicates that the house is abandoned.
Checking online real estate listings
Online real estate listings can provide a picture of a given home’s ownership status. Terms like immediate possession, vacant, short sale, or foreclosure make it clear that a given home is abandoned and up for sale. Listings that say a property belongs to the government or a bank may also mean the home is foreclosed or abandoned. So, those looking to buy homes on a budget can search online.
Speaking to real estate agents
A local real estate agent can help one learn more about abandoned properties in the region. They are usually up to date on real estate trends and can help one negotiate a better price for the property. That said, one would have to account for the agent’s fees.
Process of buying abandoned property
Although different states and cities follow different processes for buying and selling abandoned properties, the general outline remains the same.
Find an abandoned property for sale
Finding an abandoned home is the first step. One can do this by searching online, visiting real estate agents or government offices, or speaking to others in the neighborhood.
Confirm whether the home is abandoned or not
An easy way to know whether a home is abandoned is to contact city hall. The clerk in a city hall can inform people about the ownership status of a given property.
Contact the property owner
The abandoned home’s owner could be the former homeowner or the bank that has foreclosed the property. Either could inform potential buyers whether the home is up for sale.
Make a bid or offer and close on the home
Banks usually auction abandoned homes. In such auctions, buyers can bid for a home and buy it at a low cost. The paperwork can be prepared once both parties agree to the terms.