Discovering that your property has been condemned can feel overwhelming. You might wonder if you’re stuck with an unsellable property. The good news: You absolutely can sell a condemned house. While the process differs from a traditional home sale, you have several viable options.
Why would a house be condemned?
A condemned house is a property that local government authorities have officially declared unsafe or uninhabitable. This designation means the home violates local housing codes or presents safety hazards that prevent people from legally living there. Understanding why your property was condemned is the first step toward deciding how to sell it.
Common reasons for condemnation
Structural issues:
Natural disaster damage
Aging or poor construction
Compromised building safety
Health hazards:
Black mold
Lead paint
Serious pest infestations
Utility problems:
Disconnected water, electricity, or heat
Non-functional essential services
Vacancy and neglect:
Extended vacancy (typically 60+ days)
Accumulated code violations
Property abandonment
Illegal activities:
Drug manufacturing
Criminal operations
Eminent domain:
Eminent domain is a specific type of condemnation that is not related to the condition of the home. Occasionally the government will purchase private property for a public purpose. In these situations, the government will pay the property owner in exchange for the property.
Government needs land for public projects
Properties condemned for highways, parks, or infrastructure
Owners entitled to compensation
Owner rights after condemnation
As the property owner, you retain certain rights even after condemnation. The government’s role is to ensure safety standards are met and provide guidelines and timelines for necessary repairs.
Property owners retain certain rights:
Appeal the condemnation decision
Request extensions for repairs
Work to bring the property back to code
Negotiate with authorities
Can you legally sell a condemned house?
The short answer: yes
Selling a condemned house is legal in most areas. The process resembles selling a habitable home with several important considerations:
The buyer pool challenge
Traditional homebuyers cannot typically secure financing for condemned properties. Unfortunately, most lenders view uninhabitable homes as poor collateral.
Your potential buyers include:
Disclosure requirements are critical
Almost every state legally requires sellers to disclose condemned status and known defects.
What you must disclose:
Condemned property status
Specific violations
Structural issues
Safety hazards
Consequences of non-disclosure:
Lawsuits for fraud
Breach of contract claims
Financial penalties
Sale reversal
State law variations
Some areas have specific rules about what must be disclosed and how condemned property sales are handled. In certain situations, selling before official condemnation occurs can help you avoid some complications, though you still must disclose any known structural or safety issues.
Your options when you own a condemned house
Option 1: Sell as-is to cash buyers
Process:
Sell property in current condition
No repairs required
Quick transaction
Best for:
Homeowners needing fast sales
Those unable to afford repairs
People wanting to avoid renovation stress
Trade-off: Lower sale price for convenience and speed
Option 2: Auction sales
Process:
Property sold at public or private auction
Quick resolution
Competitive bidding possible
Reaches investor audience
Best for:
Homeowners needing fast sales
Those unable to afford repairs
People wanting to avoid renovation stress
Option 3: Fix up the property first
Required steps:
Address all code violations
Obtain necessary permits
Complete repairs
Schedule re-inspection
Pass inspection
List property for sale
Best for:
Homeowners with financial resources
Those with time to invest overseeing repairs
Situations where repairs maximize value
Trade-off: Higher upfront investment for potentially higher sale price
Option 4: Eminent domain compensation
Applies when:
Government condemned property for public use
Property cannot be sold on open market
Process:
Negotiate compensation with government
Work with real estate attorney
Ensure fair market value payment
How to sell a condemned house as-is
Why do investors buy condemned properties?
They can purchase property at a significantly lower price
Properties have the potential to create profit after rehabilitation
Investors have established contractor relationships
Most investors have experience with regulations and codes
Plan to sell to cash buyers
Cash buyer advantages:
Quick closings (days or weeks)
No financing contingencies
Purchase properties in any condition
Handle complex paperwork
Getting a fair value for your condemned property
Steps to ensure fair pricing:
Get home appraisal to establish baseline value of property in current condition
Use the appraisal in negotiations with the buyer
Compare multiple offers if possible
Benefits of selling as-is
Financial benefits:
No repair costs
No renovation expenses
Avoid contractor management
Time benefits:
Quick sale process
Fast closing
Immediate resolution
Stress benefits:
No renovation management
No permit applications
No inspection scheduling
Specialized companies purchase condemned properties regularly. They streamline the process and handle complications.
Pricing your condemned property correctly
First, set realistic expectations
Condemned houses sell for significantly less than comparable homes in good condition. These properties tend to have:
Limited buyer pool
Substantial repair investment required
Risk factors for buyers
Time and effort needed
Next, determine your baseline price
Step 1: Research land values
Find comparable lot prices in your area
Consider land-only value if the structure is likely to be demolished
Step 2: Calculate repair costs
Estimate rehabilitation expenses
Understand buyer’s investment needs
Factor costs into pricing
Step 3: Assess market conditions
Study local real estate trends
Review recent condemned property sales
Understand investor expectations
Pricing strategy for investors
Price competitively from the start to attract serious buyers quickly. Investors expect steep discounts because they:
Take on significant risk
Invest time and money in repairs
Navigate regulatory requirements
Deal with uncertainty
Get a team of professionals on your side
Experienced real estate agents provide:
Understanding of distressed properties
Investor networks
Marketing expertise
Transaction guidance
How they help:
Market condemned properties effectively
Highlight property potential
Connect you with qualified buyers
Facilitate negotiations
Real estate attorneys and legal protection
An experienced real estate attorney will ensure your legal protection. They provide:
Contract review
Disclosure compliance
Title examination
Lien resolution
When attorney help is essential:
Eminent domain situations
Multiple code violations
Complex legal issues
Disputed ownership
Local government agencies can also assist
Checking your property’s condemned status with local agencies provides clarity on exactly what violations need addressing. Understanding local ordinances and regulations helps you provide accurate information to potential buyers and avoid legal complications.
Resources available:
Building departments
Code enforcement offices
Zoning boards
Information they provide:
Specific violation details
Repair requirements
Timeline expectations
Regulatory guidance
Contractor consultations
Even when selling as-is, understanding repair costs will help you price your property appropriately. Hiring a contractor to consult on the repair costs will help you:
Strengthen negotiating position
Evaluate offers intelligently
Make informed decisions
Set realistic expectations
Legal and disclosure requirements
Mandatory disclosures
You must disclose:
Condemned property status
Condemnation notices
Specific violations
Correspondence with authorities
Documentation to provide:
Full disclosure benefits
Transparency provides:
Legal protection
Buyer trust
Good faith demonstration
Smoother transactions
Title and lien checks
Buyers need assurance that the title is clear and free from unexpected claims.
Essential verifications:
Outstanding liens
Unpaid property taxes
Other encumbrances
Title transferability
Legal consequences of non-disclosure
Potential outcomes:
Fraud lawsuits
Compensation demands
Sale reversal
Financial penalties
Cost comparison: Honest disclosure is far less costly than legal battles.
How to select the right option for selling your condemned house
Choosing your approach
The best option depends on:
Your timeline needs
Financial situation
Property condition
Personal circumstances
Quick sale path
Best if you need:
Fast resolution
No repair investment
Minimal stress
Solution: Sell as-is to cash buyer or investor
Maximum value path
Best if you have:
Time to invest
Financial resources
Renovation capacity
Solution: Make repairs before selling
Eminent domain path
Required approach:
Work with attorney
Negotiate compensation
Ensure fair payment
Key takeaways for selling a house that is condemned
Owning a condemned property does not mean you are stuck. Solutions exist regardless of your situation.
Remember:
Condemned houses can be sold
Multiple options are available
Professional help makes the process easier
Taking action leads to resolution
The first step toward selling opens the door to resolution and peace of mind. Whether you choose to sell as-is, make repairs, or negotiate compensation, moving forward is possible.
