Has your home been condemned? Or is your house in such disrepair that you’re worried condemnation is inevitable? If so, you’ll need to take fast action to ensure you don’t lose your property or the monetary investment you’ve put into it.
In this blog, the experts at We Buy Houses Colorado Springs discuss what it means when a house gets condemned, whether or not you can reverse the designation, and what your options are for offloading the property. Let’s get started.
What Does It Mean When Property Is Designated as Condemned?
A house is condemned when the government determines that the building is no longer fit for occupancy. This designation is typically applied when a building is in a state of severe disrepair that may put inhabitants at risk for health issues or physical injury.
No person can live in or use a condemned house until the property owner performs the necessary repairs and renovations to bring the building back up to code. All cited code violations must be fixed before anyone can occupy the space.
Once a House Is Condemned, Can the Designation Be Reversed?
It’s possible to fix a condemned house, but typically, it requires a great deal of work. First, you’ll need to contact your local building authority to communicate that you plan to fix the existing code issues that resulted in the condemnation.
Since the government already deemed the house unsafe for entry or occupancy, you must get permission to re-enter the house, even if you currently own it. You must also get permission to perform the necessary repairs and renovations from your local building authority.
Once you have the appropriate permits to perform repairs on the property, it’s best to hire professional contractors to ensure all necessary renovations are up to code. After the work is complete, the house will need to undergo an inspection to ensure it is no longer a hazard to occupant health or safety.
In the vast majority of cases, condemned houses are demolished because it’s easier to knock down the building and start over from scratch. In some cases, though, a home may be condemned due to a health issue such as mold growth. In these situations, the designation is much easier to reverse since the problem can be solved with mold remediation rather than extensive structural repairs.
Is It Possible to Sell a Condemned House?
Since performing major structural repairs can be very expensive, most people who own a condemned house opt to cut their losses and offload the property. If you own a condemned home and are considering offloading it, you should know that you cannot sell the house itself. That said, you can sell the property it sits on.
But selling the property a condemned house sits on usually isn’t easy, at least not when you attempt to sell through traditional realty avenues.
Most traditional mortgage lenders aren’t keen on letting prospective borrowers purchase land that houses a condemned structure. Furthermore, when a condemned house is on the property, the land cannot be designated as vacant. Because of this, land with a condemned house is considered even less valuable than a barren piece of property.
If you decide to sell your property through a traditional realtor, you’ll end up settling for a ridiculously low sale price as long as the condemned building still exists. If you want to command a higher asking price, you’ll need to hire a team to demolish the structure and haul away the debris.
Condemned Houses and Foreclosure
When a condemned house is under an active mortgage, the owner is required to take reasonable care of the property. If he or she fails to do so, the lender may put the property in foreclosure or recall the home loan. Since both situations put the owner’s credit and finances at risk, a condemned house must be fixed or offloaded as promptly as possible.
Opting for a short sale can be an easy way for the property owner to avoid foreclosure, but finding an interested buyer through traditional realty avenues can be a challenge.
Fortunately, cash home buyers can purchase houses regardless of their condition. Since these types of buyers are typically real estate investors, they have extensive resources from which to draw. And because they have plenty of working capital, they can pay cash for the property rather than working with a lender to secure financing.
The buyer may then elect to perform any necessary repairs, demolish the structure, or sell the property to another cash real estate investor. If you own a condemned property or a house that’s on the verge of condemnation, opting to sell your house to a cash home buyer is typically your best (and most lucrative!) course of action.
Need to Sell Your House Fast In Colorado Springs?
If you need to sell your house fast, whether it’s condemned or in perfect condition, get in touch with our team at We Buy Houses Colorado Springs. We’re cash home buyers, we buy houses in any condition, and we’re ready to extend a fair cash offer to purchase your property. To discover how much your Colorado Springs house is worth, contact us today to get started! Reach us online or call us at 719-602-8769.