What are Abandoned & Vacant Properties
Whenever we come across the term ‘vacant property’, we often picture an empty place, bereft of any owners. It is often said that buyers usually observe vacant properties, and then arrive at their conclusions based on personal tastes and preferences. Neighbors may think of them as an eyesore, but for interested investors, they can be quite a lucrative catch if they know what to look for.
Today we will delve into what you should know about vacant properties, and how you can make the most of your deals.
About Vacant & Abandoned Properties
These are properties that have been abandoned. They have no owners and may often be found in a state of disarray, with weeds and overgrown yards, notices on the walls, even some damage to its exteriors. This is because usually, in such cases, the owner is nowhere to be found and therefore no one is looking after the place.
Now since these houses may not be as peachy to look at, why then should you, a real estate investor, consider going for it? The answer’s simple. If you put in the time to find vacant properties, you may discover that they are almost always under market value, ensuring that you get a great deal for it as a motivated seller.
And besides, vacant places can also open you up for some unorthodox financing methods, like seller financing. For real estate investors whose credit scores may not be that optimal, these properties and financing deals come as a godsend. The owners behind these properties are generally willing to part with their places since you are taking it out of their hands. This certainly gives you more latitude despite your financial history.
Do note that some investors don’t go for vacant properties because they feel that they are letting go of unique opportunities. While this is certainly true, they tend to miss the point that this is a case about adopting the right strategy. You should know how to invest in a vacant property, and this, in turn, can help you gain competitive benefits.
Things to Know When Buying Vacant Properties
Know that you might encounter some more issues than you could when going for a house on a traditional listing. Since your property is vacant, it might be suffering from damage and deterioration. You may think that these aspects could affect how many buyers you can attract, and that’s true. What’s also true is that this same argument can be used for the current owners of the property so that they are willing to part ways with their property, seeing how big of a liability it is and how much they are incurring as holding costs. The longer the owners wait to sell the property, the less value they can get in the future.
Another advantage that you, the buyer, can get here is that there’s some grey area when it comes to property insurance. Many owners believe that their insurance plans could cover the house’s upkeep costs, but that’s simply not the case. This is because insurance companies check if the property is occupied, so as to ascertain the owners’ claim to insurance. This information too can be used to convince owners that their place is nothing less than a liability for them.
Last but not least, finding vacant properties may be a varied experience for you. Sometimes you might encounter various listings of abandoned places in your area, and some days you may not. Finding vacant properties is often a misunderstood strategy in most real estate circles. But it’s far from being an impossible thing, they just take a bit more time to find that your usual leads.