What if property next door has abandoned home?
Q : There’s a dilapidated and abandoned home next to me with grass overgrown and all kinds of creatures dwelling there. Some of the rats, snakes, skunks, etc., are now migrating to my property. I found out who the owner is and tried contacting him several times, with no success, about buying the property. What would cause such neglect? Can I lay claim to the house by mowing the grass and otherwise maintaining it for a set period of time? If not, are there legal ways of obtaining it? — Josh B.
A : Your second question refers to a gray area of law called adverse possession or “squatter’s rights,” which in some circumstances allows people to gain control of land they’ve been using and maintaining for a set time period, determined by state law.
But that’s not an option for you because that period ranges from five to 30 years, with an average of around 10 years, and the squatter strategy is at best iffy. You certainly don’t want to risk waiting a decade to try to rid the neighborhood of that rotting home next door.
In the meantime, though, please do not enter that property to inspect the house, mow, remove debris, fence it in or anything else without permission because you could easily injure yourself and be accused of trespass. Is the property in violation of city code? First, check out the online municipal codes for an abandoned home in your town. There are usually specific violations affecting public safety that will trigger city action, including old pools collecting stagnant water or other mosquito-breeding areas, broken windows, kids playing on premises, and overgrown grass and weeds harboring vermin, the latter of which you’ve personally experienced.
Do report the problem. Inspectors are far more likely to respond to citizen code-enforcement complaints than seek out unreported violations. Spurring some of your conscientious neighbors to file complaints as well will shed more light on the issue, not to mention complaints to your city councilman or woman.
After you file a code complaint, if the homeowner doesn’t address the problem, which is likely, the city will hire a contractor to cut the grass and weeds and remove any dangerous junk and standing water (hopefully). The city will then place a lien on the structure to cover its costs.
What leads a lot of abandoned homes down the path to perdition? It’s usually some kind of traumatic or life-changing event experienced by the owner such as fire, divorce, serious illness, death of a spouse, bankruptcy or foreclosure brought on by risky borrowing practices such as adjustable-rate mortgages and interest-only loans.
Does a bank own the property? In fact, odds are that the mortgage lender/holder owns the place by now. Try going to the county tax assessor website and typing in the property address. If it’s indeed a bank that owns this ramshackle dwelling, contact the institution yourself or have a real estate agent do so, offer in hand.
You can just offer to pay the agent a set fee, contingent on whether he or she is successful in facilitating a sale.
If you do buy the property, realize there may be liens on the place for unpaid taxes, unpaid repair work (mechanic’s liens) or unpaid maintenance bills from the city that you’d have to retire to buy it free and clear.
An agent can help you establish a price for the land, ideally discounted to cover your demolition and (or) lien expenses, if the bank won’t pay them. If the lender, assuming one is involved, won’t hear you out, keep the follow-up complaints coming.
Many communities are enforcing vacant-property ordinances, forcing such lenders to maintain the properties they’ve seized then imposing penalties and fines if they don’t.
Q : I owe nothing on my house and would like to sell it, but it is in poor repair. I don’t have the funds to bring it up to market price. Should I sell to an investor group? How do I get the most out of a deal like that? Can I ask for time in the home after the sale? — Jolene
A : You are talking about selling a house “as-is,” and the majority of as-is purchasers are investors, but not all. Since you’re the outright owner of a valuable asset, there is no sense in throwing away money in such a sale, even if the place is a little rough around the edges.
So for starters, you should know that the assortment of “ugly home” investment companies out there will only pay you only about 60 percent on the dollar, based on comps of similar homes in excellent condition. If you call one, odds are that you’ll only reach an individual who is just birddogging opportunities for a larger investor or group that applies a strict cost model to every deal.
Selling house as is
On the other hand, individual investors typically will pay a little more and perform work themselves, in part because they don’t have to pay a middleman. In general, the “pros” of selling to investors are a faster closing, no agent commission and few, if any, closing costs.
Not that you should forgo an agent who can go after conventional buyers. When you’re selling a house as is, you might talk about a commission below the standard 6 percent, split with the buying agent if there is one, or do a fee-paid arrangement. Agents who handle short sales have the most experience with as-is homes.
Selling a house as is doesn’t excuse you from disclosing known defects. Nor does it shield you from any liability for misrepresenting the condition of the property. Your disclosures won’t obligate you to perform any repairs. You should make the fact clear from the beginning that you aren’t able to repair anything for buyers. The buyer will no doubt pay for an inspection. Realize that most mortgage lenders will insist that a home not have structural, safety or health issues before they can lend money on it.
Minimize clutter
Even if the place is a bit battered, that doesn’t mean you shouldn’t keep it as orderly and clean as possible, both outside and in. Keep the yard mowed and resolve to be ready for viewings at all times. Keep surfaces clean, beds made, dishes put away and as much clutter as possible stored and hidden.
Know what your bottom price is going to be and be ready to make a quick counteroffer. If just a thousand or two stands in the way of a deal, you always can relent and trim your price accordingly.
It’s not uncommon for the seller to stay in the house for a short time in a “post-closing possession.” But buyers don’t like these because it creates a landlord-tenant situation with a potential for abuse. Don’t expect to be given anything longer than a 30-day lease.
The bottom line? You should shoot for a price of 75 cents to 80 cents on the dollar, depending on what needs to be done at the house.
Do report the problem. Inspectors are far more likely to respond to citizen code enforcement complaints...