3 Ways of Dealing with a Condemned Property

Ever come across a bright orange notice slapped onto the front door of a rundown property? It’s not just an eyesore; it’s a sign of serious trouble. That’s typically a condemnation notice issued by your local city or county government. This notice means the property has been deemed unsafe or unfit for habitation, and if it’s not fixed up, the government may demolish the structure and sell the vacant lot at auction.

This process often falls under the legal provision of ‘Eminent Domain,’ which allows the government to purchase distressed properties causing a nuisance to the community. These so-called “blighted” properties pose safety hazards, and their neglect can affect the surrounding neighborhood. Property owners are typically given two choices: repair the property or sell it to the county (often at a deep discount), after which the county demolishes it.

Real-Life Example: Little Road

Recently, in my own neighborhood on Little Road, a quaint but abandoned house fell victim to this process. After years of neglect, the county stepped in, issued a condemnation notice, and ultimately demolished the home.

If you’re thinking, “This could never happen to my vacant property,” think again. Condemnation notices are issued frequently, and many out-of-state property owners are blindsided. They may not even realize their property’s condition until they receive a notice—leading to a mad scramble to prevent condemnation. The costs, time, and emotional stress can add up quickly.

But don’t worry—there are ways to handle a condemned property or one that’s at risk. Here are three practical strategies:

1. Sell It to a House Flipper

This is the easiest way to sidestep the problem. House flippers specialize in turning distressed properties into functional homes. Many have connections with county officials, which can help secure extensions on deadlines while repairs are made. A skilled flipper can often rehab a property within a few months, getting it back into shape and on the market.

However, if there’s a mortgage balance to pay off and the flipper’s offer doesn’t cover it, this option might not work. Don’t panic—there are always solutions. Check out other creative financing strategies or seek professional advice tailored to your situation.

2. Rehab the Property (DIY or Hire a Contractor)

If you have the funds, consider rehabbing the property yourself. Doing so can add significant value, allowing you to sell for a profit down the road. Contrary to what it might feel like, the county isn’t against you—they just want the property to be safe and habitable. In many cases, county officials are willing to work with you. They might grant extra time for repairs or even waive some fees if you’re cooperative.

For the handy types, taking a DIY approach can save a lot of money—as long as you’re experienced with extensive rehab projects. If you’re not confident in your skills or don’t have the time, hiring a professional contractor is the safer bet. Pros can ensure the work is done correctly and on time, preventing further complications.

3. Partner with an Investor

If you lack the funds for a full rehab, partnering with an investor can be a creative solution. Here’s how it works: the investor provides the money for repairs, you complete the rehab together, and then split the profits once the property is sold. While this means you’ll earn less than you would by rehabbing it yourself, it’s still a better outcome than selling outright—and it keeps the property out of the county’s hands.

Final Thoughts

Dealing with a condemned property can be stressful, but you’re not out of options. The right path depends on your financial situation, the property’s condition, and your long-term goals. Need guidance? Reach out to an expert who can help you weigh your options and make the best decision.

About Graystone Investment Group

Graystone Investment Group has extensive experience helping both new and seasoned investors navigate real estate challenges in the Greater Tampa Bay market. Whether you’re looking to wholesale, buy-and-hold, invest in commercial properties, or tackle a fix-and-flip, we’ve got you covered.

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