An abandoned home is a property that has become uninhabited due to foreclosure, bankruptcy, or other financial or legal complications. These properties are often in disrepair and require significant renovation, which is why they tend to be sold below market value. This makes them particularly appealing to investors, flippers, and wholesalers looking for a good deal.
If you’re considering investing in such properties but aren’t sure where to find abandoned homes for sale, don’t worry. We’ve got you covered!
Abandoned Property Guide
Purchasing such a house can be a beneficial deal for homebuyers. If you’re searching for such properties, where might you find them?
Seeing a sign that reads “Abandoned house for sale” isn’t common, and you might wonder about the legality of such sales. Yet, houses that have been left by their owners and remain unclaimed can be attractive opportunities for buyers due to their lower costs.
An “abandoned property” is a home that’s no longer occupied by its original owner, often left in disrepair because of financial difficulties. If local laws permit, claiming such a property could be a worthwhile venture.
On occasion, some are discovered to be well-maintained, and the owner might be considering selling to avoid foreclosure. This scenario can present a unique opportunity for the right buyer to acquire the property at a favorable price, potentially leading to significant profits from a future sale.
The increase in abandoned real estate, as reported by NBC News, is primarily attributed to the rising cost of living in the U.S., which has led to an uptick in home foreclosures. In May, foreclosure-related filings, including default notices, scheduled auctions, and bank repossessions, were up 7% from April and 14% from the previous year, totaling 35,196 properties.
The process of foreclosure was initiated on 23,245 properties in May, marking a 4% increase from the previous month and a 5% increase from the previous year. The states leading in foreclosure starts were Florida, California, and Texas, with Florida experiencing the highest number of foreclosures.
How to Find an Abandoned Property?
To acquire an abandoned house, you must first locate one, which may be done in a variety of ways. To get you started, consider the following alternatives.
Look Around the Neighborhood
You might be thinking “How do I find abandoned properties near me?” Well, the answer is in the question itself! Start looking from the nearest place, the neighborhood you live in!
Look for properties that appear to be in such a state. This is a simple strategy, but it might be difficult to tell the difference between an abandoned property and an empty home. Unruly grass and weeds, chipped or faded paint, no automobiles in the driveway, and structural problems are all typical problems of abandonment.
Ask Around the Neighborhood
If you ask a postmaster or a delivery person if they encounter any abandoned houses on their routes, they will likely say yes. Daily couriers visit your neighborhood and the nearby areas regularly. Ask them whether they’ve come across any properties that appear to be deserted or abandoned the next time they bring mail or delivery. They probably pass by one or two of them daily.
Check with Local Authorities
Make an appointment with the county clerk. You might be able to identify abandoned homes by going to the county clerk’s office because the government keeps property ownership data.
Inquire with banks to see if they have an inventory of houses under foreclosure. When a homeowner is facing bankruptcy or foreclosure, they may forsake their house entirely. The legal procedure might take a long time if this happens. So go to various banks and ask about homes that have been foreclosed on or are being repossessed.
Cities often launch programs aimed at revitalizing neighborhoods and reducing the number of abandoned properties. A prime example of such an initiative is Baltimore’s effort to sell more than 200 city-owned abandoned homes to residents for just $1 each. A full story provided by Erin Snodgrass is available on Business Insider.
To take advantage of these opportunities, keep an eye on city or municipal government announcements. These programs may have specific eligibility requirements and application processes. For instance, in Baltimore’s case, potential buyers might need to demonstrate a plan for renovating the property and possibly meet residency or investment criteria.
Consult Local Real Estate Professionals
Inquire with local realtors. Because it might harm their company, local realtors are aware of abandoned and unoccupied properties in the region. Nobody wants to buy a house adjacent to one that has been abandoned. So check with a few agents to see if they are aware of any.
Also, check some well-known agencies and media that are covering the real estate market. For example, lovePROPERTY shared an interesting list of abandoned mansions priced as low as $100,000.
Another great approach is to try with property auctions. Due to infractions of federal laws, the government seizes real estate holdings across the United States. These properties are frequently sold in local real estate auctions, so find out when and where they will be held and make plans to attend.
Make Sure It’s an Actual Abandoned house
It may well be difficult to discern the distinction between an abandoned property and one that is simply uninhabited at first look.
This is especially true if the house is in poor condition. The distinction is significant because a vacant home has someone who claims legal responsibility for it, but an abandoned home’s owner has relinquished all rights to the property.
This implies that dealing with an abandoned home may be a little easier for you, even if most unoccupied homeowners don’t reside in the same city as the home. You might ask your neighbors if they have any information on the property or its former renters or owners. Furthermore, public records should contain the owner’s address, allowing you, the neighborhood HOA, or even the local government or police department to contact the owner to try to find a resolution.
Track Down the Property Owner
To determine the ownership of an abandoned property, the easiest way is to check your county’s tax assessor website. While there may be a nominal fee, the insights you obtain are well worth it.
It can be quite a task. Your tax office is a great place to start, especially since you’re already there for property leads. The land tax records will list the most recent owner and might include contact details. You can also find out if there are any unpaid taxes on the property; if that’s the case, you could inquire about any upcoming tax sales.
If the mailing address for the property is the same as the abandoned property’s location, this approach might not yield results. The owner could still be collecting their mail or have it forwarded to a new address. Despite this, it’s important to keep trying to contact them to show your interest in the property.
Get Your Home Inspected
Always get a house inspected before making a purchase. When it comes to abandoned properties you are looking at years of neglect and have no idea how bad it can be.
You have no clue why the house was abandoned; it might be due to physical deterioration, foundational concerns, or a variety of other factors. Regardless of your plans for the property, you must get it inspected and fixed to ensure that you will still earn a profit from the purchase, you must account for the cost of any improvements.
After you’ve discovered a possible abandoned house and have been pre-approved, you’ll need to factor in the price of restoring it to its former glory. Get a thorough evaluation of the property and make a list of what needs to be repaired and how much it will cost.
An appraisal charge, pest and lead inspection fees, title insurance, closing costs, and other legal fees are all included in the cost of claiming abandoned properties.
Place an Offer
It’s time to make an offer if you’ve decided you want to buy the house. You may be working with the original owner, a bank, or even the government. In any case, you must factor in the expense of repairs before making an offer.
Before you make an offer for the property, run the figures. A real estate agent can also join you at the premises and explain any additional costs that will be incurred after the purchase. The agent can also assist you in determining how high you should offer. Look for the proper prospects, and you’ll locate a house that fits your budget well.
Final Thoughts
Although abandoned property investment may not be the ideal match for every new real estate investor, it may be extremely rewarding for the right person.
The difference between an investor who has done their homework and has a good understanding of what they’re getting into and one who goes in blind and buys properties at face value will be whether they’ve done their homework and have a decent notion of what they’re getting into.
While there are several benefits to acquiring such property, it’s important to keep in mind that flipping them is not simple. Yet, if you are successful in restoring the house, the property worth of the house, the street, and the community will all improve. Just make sure you put in some effort to do your schoolwork beforehand.
I’m Tanner Murphy, a retired real estate agent from California, now writing for propertyescape.net. I simplify California’s complex real estate laws for readers, making it easier to understand and navigate the market.