Buying an abandoned home could present an opportunity to snag a property at a bargain price. But before you decide to start shopping for abandoned properties, there are things you need to know.
A recent article from realtor.com outlined key things buyers need to know about buying abandoned properties, including:
- You’ll need to get pre-qualified/pre-approved for a mortgage. If you want to buy an abandoned property, you’ll need to follow the same process as buying any other type of real estate, including getting a pre-qualification or pre-approval letter for a mortgage. This will give you an idea of how much budget you have to work with, which will inform what properties might be a right fit.
- The right search terms can help you find abandoned properties. Want to explore abandoned properties in your area? When searching listings, use search terms that might indicate a property is abandoned or unclaimed, like “immediate possession,” “below market value,” “must sell,” or “under appraisal.”
- It’s important to understand the risks. Buying an abandoned home can be a risky investment; for example, an abandoned home that’s been vacant for years could have a number of maintenance issues, including wiring issues, water leaks, or gas leaks — all of which could be expensive to repair. Make sure you fully understand the risks (and potential costs) before making an offer.