So, now that you’ve found abandoned homes for sale (cheap or extremely discounted), what’s next? There are a few steps that stand in the way of becoming the proud owner of an abandoned property, the most important one being that you make sure the property is, in fact, abandoned.
After finding abandoned property for sale, it’s time to initiate the sale process. Depending on the home, the process could be as easy as finding the owner and expressing your interest in purchasing it. Or, it can be as tricky as navigating the foreclosure process.
Before you offer to buy abandoned property, there are a few things you can do to protect yourself and your wallet. Since these houses have been abandoned, you must ensure they are safe and secure. The owner or investor selling the property typically requires a thorough inspection and appraisal process.
In addition to these required inspections, you can order certain inspections of your own to make sure the investment is worth your while. As with nearly all abandoned homes for sale, you can expect to make certain necessary repairs. But there could be underlying issues that pose serious financial threats.
First, order a maintenance inspection to determine the kinds of repairs that you will need to make. Some repairs are obvious, like cosmetic fixes and upgrades. However, a maintenance inspection will highlight hidden problems, like foundation issues or roof problems. These repairs could add thousands of dollars to the overall cost of the home.
It may also be a good idea to order a pest inspection to determine if the home may have any infestations. Cockroaches, termites and other pests could wreak havoc on the structure of the home.
Once you have done all the inspections on the abandoned property for sale, it’s time to get preapproved by a mortgage lender. This is required in nearly all cases except if you plan to purchase the home outright in cash. The preapproval process will help you find out if you can afford the home by financing it with a loan.
Depending on the home, you may need to contact a real estate agent to make an offer on the abandoned property. This is a common requirement of homes that are up for auction. Many foreclosed homes are listed on auction websites that are only accessible to licensed brokers or real estate agents. In cases like these, contacting an agent is your only way to continue with the sale process.