What comes to mind when you hear “condemned house”? 

Maybe you’re picturing a creepy, abandoned home from a horror movie… or perhaps you’re thinking of a rundown, eerie house tucked away somewhere in the middle of the woods?

Sure, those might be condemned houses, but chances are your situation isn’t nearly that dramatic. Even though it might feel like you’ve hit rock bottom, here’s some good news: you can still sell a condemned house and walk away with money in your pocket.

Let’s look at what a condemned house really means, why it happens, what the process entails, how to avoid it, and your real options for selling. 

What Is a Condemned House?

A house is legally condemned when local authorities determine it has safety problems, structural issues, or health concerns that make it unsafe for anyone to live in and pose life-threatening dangers. 

Once your house is condemned, you will receive a condemnation order that confirms that no one is legally allowed to live there until you make all the necessary repairs and it passes a fresh inspection. 

Types of Condemned Buildings

While this guide focuses on houses, condemnation can apply to different types of structures:

• Single-family homes are often condemned due to neglect, disaster damage, or unsafe living conditions.
• Multi-family buildings are usually condemned when major systems fail or health hazards affect multiple units.
• Commercial properties can be closed due to safety code violations, structural issues, or contamination.
• Industrial facilities can be condemned and shut down because of environmental dangers or unsafe equipment.
• Public buildings are sometimes closed and condemned due to structural deterioration or health concerns.

Each type has its own repair requirements and legal considerations, but the underlying processes for all are similar and involve inspection, a violation notice, and then a condemnation order.

Can You Sell a Condemned House?

The short answer is, yes. You do have fewer buyer options than with a typical home sale. Traditional buyers, who rely on mortgage financing, typically don’t buy condemned houses. 

This leaves you with options like cash buyers, auctions, and others, which we’ll explore. 

Reasons a House Gets Condemned

Authorities typically issue condemnation orders for houses (or other types of properties) that create dangerous situations, violate building regulations, or pose a threat to anyone living inside the property. 

Structural damage can refer to problems such as foundation failure, roof collapse, or unstable walls. Even the presence of mold, asbestos, lead paint, and extreme pest infestations can all lead to property condemnation. 

Additionally, natural disasters, including fires, floods, earthquakes, and hurricanes, can also cause significant damage to homes, leaving them unsafe to live in. Other reasons include building code violations, severe construction defects, and non-compliance with building regulations. 

These are the most common reasons houses get condemned. 

If you catch these problems early and address them in time, you could potentially prevent your home from being condemned.

Preventing Condemnation

To avoid condemnation, homeowners should prioritize routine maintenance and address any safety concerns immediately. 

You can protect your home’s value by ensuring that you manage structural issues, repair leaks, update electrical systems, and resolve pest problems. Making small changes to your home over time can also help you avoid spending thousands of dollars at once to fix everything. 

If you receive a code violation notice from authorities, respond fast and work with local authorities to resolve the issue before it escalates to condemnation.

Early Warning Signs of Condemnation

In most cases, condemnation doesn’t happen without warning. There are often red flags that your home is at risk long before an official notice arrives.

These red flags can include: 

• Receiving repeated code violation notices from local authorities.
• Noticing visible cracks in walls, ceilings, or the foundation.
• Any sagging of the floors or roofs.
• Persistent water leaks or electrical problems that can’t seem to be fixed properly. 
• Any long-term pest infestations. 

How the Condemnation Process Works

The exact steps are different depending on the city or state the property is in, but most follow a similar process.

First, an inspection is carried out by a building official. They are usually alerted by a complaint from a neighbor, a report from a utility company, or it could just be a routine safety check.

If the inspector finds any serious violations, they will issue a violation notice detailing the problems, required repairs, and the specific code sections that have been violated.

It’s important to know that this notice includes a repair deadline, which can be as short as a few days for urgent issues or as long as several months for more complex repairs. Don’t miss this deadline! 

If the repairs are not completed by the deadline or if the work is inadequate, the city will issue an official condemnation order. This order is legally binding, and the property becomes uninhabitable until all issues have been addressed and it passes a reinspection.

What Happens After a House Is Condemned?

Once a home receives a condemnation order, it’s officially deemed unsafe for habitation, and both the owner and any occupants must follow strict legal requirements. When a home is condemned, the consequences can be significant.

• Occupants must immediately leave the property for safety reasons. In some cases, may qualify for relocation assistance.
• The property owner often faces fines or liens to cover enforcement costs.
• Traditional selling becomes difficult since mortgage lenders won’t finance a condemned property.
• In severe cases, the city may order demolition if repairs are not possible.

Restoring a Condemned House

Restoring a condemned house is possible, but it’s often very expensive and time-consuming.

To lift a condemnation order, you must first apply for the necessary permits, hire licensed contractors, and complete all required repairs to meet current safety codes. Once you’re done with all of that, the property must pass a final inspection by the local building authority.

If your condemned home has significant structural damage or general health hazards, the repair costs can quickly add up and outweigh the property’s market value. In these cases, selling the home as-is for cash may be a good alternative, saving you money, time, and stress.

Selling Options for Condemned Properties

If your home has been condemned, it’s important to find the right way for you to sell it. 

Not all buyers will purchase a condemned property, and traditional financing is usually not an option. 

But don’t give up! 

There are still practical ways to sell your house. Some are faster and easier than others, depending on your timeline, financial situation, and willingness to make repairs.

Option 1: Cash Buyer: 

The fastest and simplest option, with no repairs required and closing within a few days.

Option 2: Investor/Rehabber: 

These individuals may pay more if they see potential for renovation, but it can take longer to close the sale than with a cash buyer.

Option 3: Auction: 

This is a quick answer, but it typically results in the lowest sale price.

If you’re a homeowner facing fines, deadlines, or high costs on your property, selling to a cash buyer is often the most practical and stress-free solution.

Selling a Condemned Property for Cash

A traditional home sale comes with potential complications, endless paperwork, and months of showings and negotiations. If you opt to sell your house for cash, it eliminates all these delays. 

The cash buying process is very simple. 

First, it involves a quick phone call and a virtual walk-through to give the buyer an idea of the property’s value. After this, they will send you an as-is cash offer (with us, you’ll receive your no-obligation offer within 15 minutes).  If you accept the cash offer, you’ll be able to choose the closing date. Sellers often close in as fast as a week or less.

At We Buy Houses Cash, there are no hidden fees, no repair requirements, and no surprises. Our goal is to help owners with problem properties move on as easily and quickly as possible. 

What If You Still Have a Mortgage?

Having a mortgage on a condemned property can make things more difficult, but all is not lost. 

As the owner, you are still responsible for payments, even if you can’t live in or rent out the home. Lenders can also begin foreclosure proceedings to protect their investment. If you sell your home for cash, you could settle or reduce your mortgage balance quickly, which could help you avoid foreclosure. 

Many cash buyers will work directly with your lender to ensure a smooth transaction.

Why Investors Buy Condemned Properties

While condemnation is stressful for owners, investors, and developers can see it as a unique opportunity. 

Condemned houses are often priced well below market value. This creates potential to make a significant profit if you invest money in renovating and selling, redeveloping, or reusing the land.

Investors typically choose the following options. 

• Fully renovate and resell. They buy the property at a discounted price, complete the necessary repairs, and resell the house at a higher value for profit.
• Convert it into rental housing. Some investors will upgrade the property to code and lease it to tenants, creating a passive stream of rental income.
• Demolish and rebuild. Some buyers might choose to tear down the entire unsafe structure and construct a new home or multi-unit building. This often happens in high-demand neighborhoods.

You can see how cash sales often lead to a win-win situation for both the owner of the condemned home and the buyer. 

Safety and Legal Concerns

Entering a condemned house without permission can be both illegal and dangerous. To mention only a few, risks may include structures collapsing, exposed wiring, or toxic substances such as mold or asbestos. 

Always ensure that you follow local regulations and take proper safety measures when entering a condemned house. 

You Have Options

A condemned house may feel like a dark cloud is hanging over your head or that it’s the end of the road, but it doesn’t have to be. Whether you choose to restore the property or sell it, you have options. 

Many homeowners choose to sell their condemned properties for cash, simply because it’s the fastest way to resolve the situation, avoid further costs, and move forward.

If you’re looking for a way to get rid of your condemned home, contact us today, and we’ll give you a no-obligation, honest cash offer.