Passing by an abandoned home, you might sense an opportunity. Behind its weathered walls and ramshackle exterior lies both mystery and, just maybe, a potential investment opportunity. But before looking to buy such a property, it might be worthwhile to determine whether it is truly abandoned or just vacant for an extended period. Let’s look at what it means for a property to be abandoned and some potentially worthwhile considerations for buying abandoned property.
What is abandoned property?
In legal terms, abandoned property refers to a property intentionally left behind by an owner with no plans to return or maintain it. Abandoned properties can easily be mistaken for a vacant property, but it’s worth understanding the difference as a property’s ownership status can impact its availability and the purchase process.
Abandoned vs. vacant properties
An abandoned property is one where the owner has forfeited all legal rights and claims to the property. This can occur for various reasons, such as foreclosure, natural disasters or the owner’s financial difficulties. Oftentimes, ownership of an abandoned property may have already reverted to the state or a financial institution.
On the other hand, a vacant property is similarly unoccupied but still under the control of the original owner. Vacant properties can arise in numerous ways, such as the homeowner moving away without selling the property or a landlord failing to maintain rental property to the point it becomes uninhabitable.
Both abandoned and vacant properties can fall into disrepair over time, with vacant properties appearing to be abandoned and vice versa. But the legal distinction between the two can dictate how you navigate the home buying process.
Can you buy an abandoned house?
Yes, you may be able to buy an abandoned house, though the process can be more complicated than purchasing a traditional property. Some abandoned properties may indeed present a worthwhile financial opportunity, but they may also pose potential risks and challenges. Understanding the pros and cons before you buy an abandoned house can help you make an informed decision about your purchase.
Finding abandoned property
The first step in buying abandoned houses is to locate potential properties of interest. You can do this by scouting different neighborhoods on your own, looking to identify potentially abandoned homes by eye. There are also online listings and auction sites for properties classified as abandoned or in foreclosure. Additionally, local government agencies such as the county recorder’s office may have information on tax-delinquent properties that could be worth looking at.
Conducting an inspection
Before committing to buying an abandoned property, however, it’s often recommended to conduct a thorough inspection so you can assess the property’s condition and identify any potential issues.
