Do you own a condemned home in Minneapolis that you’re considering selling? However, once you start to do your research, you may soon discover that selling a condemned house may be more challenging than you think. As it is, selling a home in Minneapolis is an expensive and lengthy process, add trying to sell a property that has boarded- windows and warning signs posted on the door, well you have your work cut out for you. The good news is that even in this dilapidated condition, you can sell your condemned house, you’ll just need to find out how. Thankfully you came to the right place to learn more about how to sell a condemned house, your options, the many types of condemned houses you can sell, and who buys houses in this condition in Minnesota. So let’s begin!
How To Sell a Condemned House
What is a Condemned House in Minneapolis?
To clarify, let’s take a look at what a condemned house is defined as. A home is considered to be condemned when the local government deems it to be unfit to live in. No one is allowed to live in or use the residence because it is a safety hazard. If anyone is living in the property at the time it has been deemed condemned, they are to move out and not return unless necessary repairs are made to the property to address the reasons it was condemned. If the homeowners were to make all the necessary renovations, the home could be deemed livable again.
Although condemned is different from abandoned, if you’re not maintaining your property and allowing the elements and nature to invade the home, it easily can fall into condemned status. So if you currently own an abandoned house in Minneapolis or one in poor condition, try to maintain it as best you can or consider selling it right away so that the home doesn’t lose its value and gets condemned by the government.
Can You Sell a Condemned House in Minneapolis?
Yes, you can sell a condemned house, however, it cannot be sold as a liveable structure. The property can still be sold for the land, although the value will be reduced due to the expenses the buyer will incur tearing down the condemned house and for removal. Ultimately, this makes it difficult to find a traditional buyer because it will be hard for them to get bank financing.
However, if you’re able to find a real estate investor who pays in cash, it should be easier to sell. This would be your best option by far because you can sell the property quickly before the structure officially is condemned and you lose control of the property. Mill City Home Buyers purchase homes in any condition, including dilapidated, and can make you a cash offer with-in 24-hours without ever needing to make costly repairs.
Types of Condemned Houses You Can Sell
There are several different types of condemned houses, but the one thing they have in common is that they have repeated housing code violations questioning the safety of the building. Even an abandoned house can turn into a condemned residence over time if it poses a safety risk. However, not all homes become condemned because they were left vacant. Sometimes the homeowner has decided to renovate an ugly property, and an inspector later finds one or more severe code violations that cause the building to be unsafe. If permits are missing or not displayed correctly, this can cause issues. And if work isn’t up to code, an inspector may deem the conditions unsafe, leaving construction unfinished sometimes.
Another type of condemned house you can sell is one with a lack of sanitary living conditions. This could happen if the plumbing isn’t working properly, causing it to accumulate and lead to infestations. Properties can also be condemned due to the presence of black mold or if the home has undergone significant structural damage like a major foundation problem, storm, or fire damage.
A property could be condemned for other reasons too. For example, suppose the city of Minneapolis wants to expand a street or improve a public facility. In that case, your house could actually be seized by the government even with no violations. This type of “condemned house” you actually wouldn’t be able to sell. The technical term for this is eminent domain, and in these instances, the owner is compensated for the property at its current market value.
What Tends to Happen with Condemned Houses in Minneapolis?
If you own a condemned property, your possession is seized by the government. Homeowners and other occupants are forced to leave immediately, and warning signs are placed on the home stating it is unfit for anyone to live in or enter.
The city may order you to either make necessary repairs to bring the home into compliance or if you were to refuse, they may force you to have the house demolished at your expense.
The longer a condemned house sits, it often attracts trespassers, vandalism, and squatters. As a homeowner, avoiding this all together would be ideal, you wouldn’t have to deal with unwelcome visitors and more destruction to the property.
Condemned House Selling Options in Minneapolis
Honestly, selling a condemned house won’t be easy. Remember, you really can’t market the housing structure but rather the land it sits on. You may get lucky and find a buyer willing to take on the repairs and code violations, but more than like, the price will need to make sense for them. Expecting top dollar may be wishful thinking. You can try to sell the condemned house a few different ways, but some may cost more than others.
Sell with a Realtor
Working with a real estate agent may be helpful, they might know someone looking for a tear-down, who wants to build on the lot. However, if you were to use them as your listing agent, you will owe agent commissions upon the sale of your condemned property. The commission will be less since the sale price will be less but still a significant amount. For example, if you sold your condemned home for $20,000, you may owe up to $1,200 in realtor commissions, split between the buyer and seller’s agents. That doesn’t include taxes or closing costs.
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Sell By Owner
Another way to sell your condemned house in Minneapolis is to sell by owner (also known as FSBO). Completely different from working with an agent, selling by owner is entirely hands-on. You will handle all aspects of the selling process. This may prove difficult if you don’t have a real estate background or extra time to dedicate to selling the property. The reason to consider selling by owner is to save on listing agents commissions, however, you still may need to help pay the buyer’s agents commissions. For many people, it’s hard to justify the possibility of only saving 2.5-3% on commissions when they are still doing a majority of the work.
Sell to a Cash Home Buyer
When you’re dealing with selling a condemned house in Minneapolis, time is of the essence. You’ll either need to make an effort to make repairs or be ordered to demolish the house at your own expense. If you were to start working on the home, you’d have to hire a contractor and have money readily available to pay for renovations. You will also need to make sure the home is secure so that building materials aren’t stolen while the home is under construction.
If you were to consider the alternative and demolish the house, you may lose out on equity and come out of pocket for the work.
In these cases, working with a home buyer like Mill City Home Buyers would be perfect. You would be able to sell your condemned property to a local investor that can make you a cash offer within 24-hours and close within 7 days. You wouldn’t have to deal with the hassle or cost of repairs because you can sell as-is.
Mill City Home Buyers can work directly with you, so hiring an agent isn’t necessary. And since agents aren’t involved in the sale, there aren’t costly commissions or service fees. They will even help pay closing costs. That’s money you can keep in your pocket to put towards your next home.
Mill City Home Buyers has an easy home buying process and successfully helped several homeowners sell their condemned house in Minneapolis and could definitely try to help you too!
If you need to sell your Minneapolis home but are dealing with a unique situation like preforeclosure, bankruptcy, divorce, probate, code violations, unfinished construction, inherited property, or major repairs, Mill City Home Buyers can help!
Feel free to contact them or visit their website for more information about Mill City Home Buyers.