Can You Sell a Condemned House?

Can You Sell a Condemned House

The government, on some occasions, may classify a house as condemned. The term means that the house is not suitable to be occupied. The house or property is considered a safety hazard.

When a house is condemned and has occupants, they must vacate the premises and can only come back if measures are taken to restore the building. When you are in Denver and occupying a condemned house, the local authorities give you 30 days to move out of the premises.

It is possible to sell a condemned house, but it is not an easy task. Some local governments do not condone the sale of condemned houses even if you know a customer ready to make the necessary repairs.

In this case, you will have a small window of opportunity to carry out necessary repairs before selling the house.

However, you can still sell your condemned house as-is to a customer who is willing and ready to carry out the repairs. The condemned house is not sold as a structure but as a piece of land. Condemned houses are sold at a huge discount.

The more dilapidated the building, the higher the chances of it being declared condemned, and when this happens, you no longer have the authority to sell it since the local authority completely takes ownership of the building.

When selling a condemned house, you need to make sure that the buyer is aware of the complete state of the house for them to make an informed decision.

Most buyers interested in condemned houses generally do not require financing, which means the transaction takes a shorter time since they already have the cash.

Lenders tend to avoid financing such purchases even if the buyer wants to renovate the building. Although a few private lenders are willing to take the risk. You need to involve a real estate expert to develop the best plan for how to dispose of the property.

In Denver, it can be expensive to own a condemned house or neglected and derelict building since one can be fined up to $1000 annually for the period in which the property remains listed as condemned.

In other instances, if the property owner fails to register remedial plans or carry out the corrective measures listed in the remedial plan, the owner will be fined $500 daily up to $15,000.

In Denver, before a building is condemned, the owner receives a notice that indicates the building’s violation or the immediate corrective action that must be undertaken on the condemned property.

The notice also contains the possible penalties that might be charged to the owner if the notice of the home’s condemned status is ignored.

Table of Contents

Why Are Houses Condemned in Denver?

Damages to the House Caused by Fire or Other Elements

City officials in Denver may condemn a building if it is seriously damaged by fire or other elements such as floods or storms. However, the most common source of structural damage is fire.

This phenomenon happens mostly when insurance companies have a reason not to help in reconstruction, leaving the owner with a house that is a safety hazard and unfit for occupation.

Hazardous Chemicals and Animal or Insect Infestations

Some homes have undergone massive damage and may contain large amounts of harmful chemicals. This can be a reason to condemn a house.

Illegal drugs or bomb assembly on the premise may condemn the house since local administration strives to ensure that the general public’s safety is maintained.

Some careless owners cannot take care of their property leading to infestation by mice or rats. This leads to the property being condemned. Termites can also interfere with the structure of the building, which makes the house unfit for occupation.

A house can also be condemned if the owner has failed to pay property taxes for at least one year. Unhygienic houses or houses with signs of hoarding can also be condemned since they are a hazard to the general population.

fire damaged house

How to Sell a Condemned House

1st Option: Selling the House As Is

After your house is condemned, you are given time to try and fix the problems on the condemned property. However, doing these repairs may not be a walk in the park for everyone.

You may decide to sell the condemned home in its current state (as is) to a cash buyer who is willing to take that risk, does not require financial assistance from any financial institution, and already has the cash.

Which Kind of Buyer Should You Choose When Selling a Home With a Condemned Status?

  • A cash buyer does not need to borrow money to make the purchase.
  • Someone knowledgeable about the process of buying and selling condemned houses.
  • Preferably a real estate investor since they are since their profession allows them to do a quick analysis of the situation and make relevant decisions.
  • It will be beneficial to get an investor with the knowledge of building codes and rules concerning house condemnation.

Benefits of Selling a Condemned Status Home As Is

  • Dealing with a professional investor allows you to sell the house quickly and get paid in cash. It is impossible to sell a condemned house to an individual who requires financial assistance to make the purchase. A condemned home is normally sold in
  • Having a condemned home means you do not have the time or finances to make the necessary repairs and corrections. Therefore getting real estate investors is a good way of disposing of the house and getting something from it – like a fair cash offer.
  • Dealing with real estate investors means the process of selling the house is speeded up because condemnation is normally the last step in enforcing building codes. It means your time is limited in case you don’t want to lose the house for absolutely nothing.
  • You get to save a lot on the closing expenses because you avoid paying the commissions charged by third parties such as brokers. You deal with the investor directly.
  • The transaction is straightforward, and you bypass the traditional home marketing techniques such as organizing showings and open houses for potential buyers.

2nd Option: Fixing the House Before Selling It

You may decide to repair and rebuild your house before putting it on the market. By doing this, you will be able to get a better price for the house. You may decide to go with the second option of fixing the house, but it is highly unlikely.

Condemnation is the last stage in the implementation of building codes, which means that you were given enough time by the local authority to make the necessary changes, but you were unable to.

Local authorities would prefer a situation whereby the house undergoes thorough rehabilitation to make it inhabitable since it is beneficial to the community and local economy.

You are guaranteed to get the best offer for your house by dealing with the right investor. Selling condemned houses is not a normal occurrence which means to get a good investor, you have to start from scratch.

You can get information about potential investors on the internet. Carry out a thorough background check and do not rely on the reviews because the reviews are bought in some cases.

What Happens After a House Is Condemned?

Rules may differ depending on location, but a standard process is followed when condemning properties.
After notification of the violation of the building codes is brought to the attention of the local authorities, the owner is made aware of these violations.

The owner is then accorded time to fix these violations. If the owner cannot meet these requirements, the process will proceed to the next phase, and the owner is notified. They will have a chance to appeal the decision or request additional time to be allocated.

If the problem persists after all these, the building is condemned, but the owner still has a chance to appeal if they have a good reason to stop the condemnation. It is illegal to occupy a condemned building. Any person residing in the residence needs to vacate immediately.

Local government can decide to repair the building themselves and go through the renovation needed, or demolish the condemned building, leaving vacant land.

The costs incurred by local government like the proper permits needed, will be attached to the property and is payable by the owner.

So, can you sell a condemned house? To summarize, selling a condemned house is difficult, but it can be done.

You will get a reduced value for your property, but it is better than getting nothing which will be the case if nothing is done on the property after it is condemned. Some real estate investors buy such houses intentionally to flip them.

The next step after a house is condemned is to hire a company to take care of the debris. Find a cash home buyer. is your solution to selling house for cash. We will buy any house in any condition so if you want a cash offer on your property simply give us a call or fill out an online form and our team of experts will get to work, quick smart, to help you get your house SOLD!

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