Has anyone delt with an abandoned house build investment?

Question

Hello All,

I came across a lot for sale? The builder and the homeowner could not agree to terms for a house build. The owner sued the builder and was paid out leaving the property abandoned for 2 years now. The lawsuit has been finalized and the owner has made the decision to just sale the land for $170k. $204K of work was completed, but the owner is ready to dump the property and move on.

Arv is worth $800k. All inspections were good, but the home would need new permits.

My question is if the abanded property can still be salvaged or does it have to be torn down and redone after sitting in the elements for so many years?

Kelly O'Keefe · Answer

@Brandon Patrick

if Arv is 800k then it could be a great buy. It looks like there is a fair amount of concrete and brick which may be salvageable after two years, but it is worth getting someone in the know out there to do an assessment

Bruce Woodruff · Answer

Thanks @Noah Bacon

Generally, after that amount of time in the elements, a City Building Dept would not allow the wood products in particular, to be used. The heat combined with the intense sun (UV damage) would deteriorate and degenerate the wood, rendering it not at the same level that it was originally [Wood products are rated/graded, you will see this stamped on wood when you buy it and it is called out by architects and engineers]

So unfortunately no, I seriously doubt that the wood is going to be approved. However, the metal and concrete/masonry that remains in good condition should be ok. But you will need to have an Inspector from the Building Dept do a courtesy Site-Visit and tell you (get it in writing) that this is acceptable to them.

If it would help to have me look at it let me know.

Noah Bacon · Answer

@Bruce Woodruff tagging you for visibility! Any recommendations on the above with your long time GC experience?

Tim Bratz · Answer

You would need to hire a professional inspector. This is a cost of doing business.

I would first ask if the seller has had any of these inspections/reports done.

I would also contact the city to see if they have inspected the property, or issued any violations.

If everything there is square, great.

If not, I would put the property under contract-- then do the inspections. Do NOT do the inspections prior to being under contract.

Make sure you give yourself some better timelines, such as “earnest money is fully refundable until 30 days after all 3rd party inspection reports are completed."

Hope this helps!

Alan F. · Answer

Bump for OP

Has anyone delt with an abandoned house build investment?

Has anyone delt with an abandoned house build investment?

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