Can You Sell A Condemned House In California?

Selling a Condemned House California

There’s too much to learn about condemned houses, from why they are tagged as such and how you go about selling them. If you’re intrigued to know more, stay with us until the end!

What is a Condemned House California?

For all their appearance, condemned homes aren’t a lost cause. The grounds why the house was first declared uninhabitable may still apply in order to remove it from condemned status.

What are Grounds For House Condemnation In California?

California homes may become condemned for a few different reasons. Although local laws differ,
condemnation often occurs when:

Keep in mind that there is more than one reason why a house is classified as condemned. They usually have numerous risks that have developed over time.

However, a home may be condemned by the local government if it is to be used for public projects like schools, airports, or highways. Eminent domain authority has the potential to cause this.

If the homeowner is subject to eminent domain, they will be paid. Owners usually experience headaches throughout this process, though.

How Long Does it Take to Condemn a House California

Depending on a number of variables, including the reason for the condemnation, local laws, court proceedings, etc., the process of condemning a house may take many weeks or months.

In most cases, the California owner would be informed that the home does not comply with a particular health and safety code. It’s possible to notify the neighborhood that the property is condemned and that the owner must make repairs.

If the owner failed to make corrections, there would be a legal hearing where the house may face condemnation.

Once a home is designated as condemned, the owner is once more granted 30 to 60 days to complete any outstanding repairs and modifications, ask the local government to come out and examine, and submit fresh permission applications.

Due to time constraints and the high expense of repairs, most homeowners wish to sell their condemned house at this point to investors and cash buyers.

Officially, the house would be declared uninhabitable if the local government’s requirements weren’t fulfilled. There’s no way I could sell it now.

What Happens When a House is Deemed Uninhabitable California?

Can You Still Live in a Condemned Home California?

Additionally, there are instances where unwanted guests like trespassers, vandals, or squatters inhabit the condemned property. Since the house is empty, it may not be possible to resist doing this even though it is prohibited by local government regulations.

If you don’t want this to happen, you must decide whether to sell your house or make repairs immediately.

Can You Sell a Condemned House California?

However, keep in mind that it can be difficult to obtain a mortgage for a California condemned home, thus it may be difficult to find a retail buyer.

Selling the house exactly as it is is your other choice when selling a condemned home. If the house is beyond repair, this is advised. The buyer technically pays for the land the property is on when you sell it as-is, not the house building because the latter is no longer valuable. 

These home buyers who buy condemned properties as-is could then demolish the house and build another.

It is an entirely different situation for properties that were condemned by eminent domain. This will prevent the homeowner from selling the house because the government will own it as public property. 

The good thing, though, is that the government will provide compensation. This is what we call a pro-tanto award. 

The government will furnish you with a written offer for the condemned property in consideration of its appraised value.

If you believe the house is worth more, you can turn down their offer, get the market value of the California property assessed, and submit the assessment to the relevant government agency. Usually, this will end up in court.

If the process of condemnation by eminent domain seems daunting, seek legal counsel.

How to Sell a Condemned House California

Address the Violations

The government’s notice about the property’s state includes a list of all the code breaches the condemned residence was penalized for.

To restore the property’s habitability, you must address each infraction. That could entail clearing out an infestation, getting rid of black mold, organizing, etc.

Hiring a contractor can solve your issue if only a few locations need repair. A Certificate of Occupancy will be granted to you when the local authorities re-inspect the property.

After this, you can get in touch with someone buying a condemned home in California.

Deal With Major Repairs

Hiring a contractor may not be enough if the condemned house requires significant modifications, such as repairing structural damage, rather than just minor repairs.

To give an example, before you can sell your condemned home, you may need to employ an architect to create the designs. This can be expensive and may not be worthwhile if, even after repairs, the home’s market value is poor.

You would also have to submit a plan to the local authorities if the remodeling included electrical systems. Obtaining permits can be costly and labor-intensive.

When the plans have been approved and you were issued the necessary permits, you can then proceed to find people who can do the work. 

The local California authorities will conduct inspections during the renovation process to ensure adherence to the approved designs. Only then will you receive a Certificate of Occupancy and the green light to sell the condemned property and locate nearby buyers if they are?

Choose a Way to Sell the Condemned House

When you are ready to sell the condemned house, you can choose amongst three options on how to proceed.

For Sale by Owner (FSBO)

This is difficult because, usually, mortgage companies do not want to finance buying a condemned property.

Even if you succeeded in getting offers, you would still experience the most challenging part of selling a condemned house FSBO⁠— negotiating with homebuyers.

It is likely that buyers will submit noncompetitive offers if the California condemned property is not remodeled to the point where it resembles a regular property. In particular, if you are not familiar with real estate, it may be challenging to deal with them.

Real Estate Agents

There are real estate agents who are experts in selling condemned houses and they could make the process of selling your California property less work.

To begin with, a real estate agent can assist you in determining the fair market value of the condemned property. They are able to accomplish this while taking your renovation-related expenses into account.

They can also find the right buyers and shoulder the burden of negotiating for a fair sale price.

But keep in mind that it costs money to work with a real estate agent to sell your condemned home. A real estate agent may charge you up to 6% of the sale price on average.

This is a big amount of money, and since you still need to pay for the improvements, marketing, mortgage repayment, and closing charges, you can end up with little profit.

Cash Home Buyers/Real Estate Investors

A cash house buyer or real estate investor who can make an immediate cash payment is your best bet when selling a condemned property.

Like with traditional real estate, these cash buyers and investors will usually act quickly and make you a reasonable cash offer.

The majority of investors and cash buyers of foreclosed homes have a team they hire on a regular basis to fix homes. This implies that they will sell your house in its current state and, following repairs, will either sell it or continue to rent it out.

Should your California condemned property be too far gone to be classified as a structure, they can still buy your land with the intention of tearing down the house. Put otherwise, the land where the condemned property is located is what they are buying from you.

A cash home buyer is also ideal if you want to save on closing costs and commission fees. However, since they are your direct buyer, you don’t have to go the traditional route of marketing your condemned property.

Related Questions to Selling a Condemned House California

Final Thoughts: Can You Sell a Condemned House California?

Homes that are condemned are not hopeless. California homeowners can still receive some value from them and sell them. The owner is pressed for time when deciding whether to sell a condemned house, though. 
When repairing a condemned house makes no financial sense and the process sounds stressful, that’s when it is suggested to sell to a cash home buyer.

We at JiT Home Buyers will buy your condemned home in its current condition, saving you money on any necessary repairs or upgrades. You won’t need to bring any cash to closing because we’ll take care of the closing expenses as well.
Fill out the form below or give us a call at (510) 473-5885 to get a cash offer on your condemned house!

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