Do you have an unsightly property in your neighborhood? It’s never mowed, looks like it’s falling apart at the seams, and you never see anyone there? It might be an abandoned property.
Instead of selling a house in Rhode Island, some people will leave it to rot and quit paying money on it, such as a mortgage or property tax. Unfortunately, these abandoned homes are not just eyesores, but they attract squatters and other unsavory characters right into your neighborhood.
If you’re the owner of an abandoned property or house and you’re in financial hardship, the best thing you can do is to sell your home. Yes, damaged houses sell for less, but at least it won’t be incurring more expenses and fees for you.
Read further to learn all you need to know on how to sell an abandoned property in Rhode Island, including the real estate market in Rhode Island, Rhode Island property laws, and how to turn a profit by selling abandoned property.
Rhode Island Property Laws
Rhode Island property laws can be confusing and full of legal jargon, but there’s no need to bang your head against your desk in frustration. So what is the Rhode Island property law regarding abandoned homes?
What Is an Abandoned Home?
An abandoned home is a property where the owner has allowed it to fall into disrepair. The damage is so severe that it’s a hazard for anyone living there and the neighborhood surrounding it.
A Summary of Rhode Island Property Law For Abandoned Real Estate
If you own an abandoned property, know that others can take you to court for not keeping the house up to code. For example, a neighbor of the property, a non-profit organization, or an interested person who wants to improve the property can put in a motion to the courts. This motion is that the property has severe violations against it to the point where it’s a hazard to anyone living on the property or to the neighborhood it’s in.
A judge decides on whether it’s violated the state’s code. If the property has, then the judge will rule that the health hazard, or menace, must be fixed in a reasonable time frame.
If the issue isn’t fixed, then the court can have someone else come and fix it for them, called a receiver. Before the order arrives, banks, organizations, or other interested parties can put forth their name to repair the property.
They’ll need to have a financial plan and the estimated cost of labor and materials, what the property will cost after its repairs, and demolition costs, should repairing it not be feasible.
After it’s repaired, the receiver can petition the court to sell it. It will be up to you, the homeowner, to prove that it would benefit the courts not to sell the property. If the court decides in favor of the receiver, then the receiver will sell the property. Any profits will go towards debts the property has.
RI Property Market
It’s always best to stay up-to-date on the latest property market trends as they can change quite rapidly. It’s best to make sure you’re researching the real estate market when you want to buy a house, rather than several months in advance, to avoid sticker shock.
Rhode Island Property Market Trends
The Rhode Island real estate market is booming with over 400,000 houses and apartments. Across the board, the value of homes in Rhode Island is increasing and is higher than in many other places in America.
By population, 41.6% of adults living in Rhode Island rent, with their average rent being $1,556 per month. Adults that are living in Rhode Island that own homes are sitting at 58.4%. About 49,250 residences are vacant, which is very low, so people scramble to find places to live. It’s the best time if you want to sell your house.
The average price for a single-family home is $385,000, up 5.5% since May 2021. The overall average house price in Rhode Island is $307,000.
With 30% of homes built before the 1940s, it’s no wonder that house repairs are necessary. The average house repair in Rhode Island is around $14,000, while the average renovation price in Rhode Island is almost $34,000. Keeping your home up-to-date with regular maintenance is the best way to avoid the cost of repairs.
If you do a traditional listing with a full-service realtor, you could be spending upwards of 10% of your actual list price when selling your home. So, the average costs when selling a house in Rhode Island is over $30,000. This includes prepping your home, realtor commission fees, buyer incentives, closing costs, and relocation expenses.
- Average house price in Rhode Island: $307,000
- Average house repair in Rhode Island: $14,000
- Average renovation price in Rhode Island: $34,000
- Costs when selling a house in Rhode Island: $30,000
If you’re looking to cut the costs, you can find companies that buy houses in Lincoln and surrounding areas and skip the realtor. For example, we buy houses in Rhode Island and don’t require most of the costs mentioned above.
Can You Sell an Abandoned House in RI?
Selling an abandoned property in Rhode Island is complicated, but you can definitely sel an abandoned house. If you are the owner and no longer wish to own the home or are looking to sell a damaged house, you can sell your house as-is and try to get enough money to pay for all the debts the house has incurred.
If you aren’t the property owner, but the courts hire you to fix an abandoned property, you can petition the courts to approve selling a house in Rhode Island. Once they agree and put forward stipulations, you’re good to go. Here’s how you go about selling abandoned property in Rhode Island.
How To Sell an Abandoned House in RI
Abandoned houses and property have a list of adverse effects against a neighborhood, including being crime magnets, public health concerns, deteriorating conditions, and the ongoing cost of maintaining an abandoned property.
These factors make it vital for you to know how to sell an abandoned house in Rhode Island. Don’t expect to get market value for it if it has significant damage, but you’ll get it out of your hair and won’t have to worry about it anymore.
1. Assess the Market
To make sure this goes as quickly as possible, you need to assess the market. Were there other homes in your area that sold as-is? What was the list price in the beginning, and what did they sell for in the end? What problems did they have? How long did they sit on the market before selling?
These are all factors to take into consideration when selling abandoned property in Rhode Island. Of course, you want the best price you can get, but not at the cost of a house sitting on the market for several months.
2. Determine Property Condition
Take the time to look at your property and assess the condition. Or have a home inspector do it for you, so you know exactly where you stand. Doing this will also help with determining the asking price.
If you go for the home inspector route, you’ll have a comprehensive list of everything that needs fixing in your home, which will be important later.
3. Fix Minor Cosmetic Issues
If you can, fix some of the minor cosmetic issues before selling your house in Rhode Island. Doing this can improve your curb appeal, usually doesn’t take much time or money to do, and can increase what you get for the home.
4. Listing Your Abandoned Property As-Is
Now that you know where you stand, you can go and list your house. Now, all that’s left to do is:
- Set an asking price
- Put information in the listing
- Wait for buyers to come to take a look at your house
Make sure your asking price is reasonable so you’ll get your abandoned property sold as quickly as possible, but don’t be a pushover. It’s okay to want to get the most out of your property.
Also, provide all information in the listing. Let people know what they’re getting into and what it’ll take to fix it up. You don’t want to be taken to court because you weren’t honest with them.
Also, learn about the different types of buyers and appeal to them. For example, do you want to go for an agency that wants to flip an abandoned house and sell it for profit? Or are you selling your home to a young couple looking for a fixer-upper to turn into their forever home?
If you’re not getting any traction, it might be time to go with a cash buyer as this cuts down on closing costs, realtor fees, and the transaction closes faster.
It is an opportune time to sell an abandoned property in the booming Rhode Island property market. Yes, it might be slightly more complicated to sell your home if damaged, but it is certainly not impossible. Now that you know more about property laws, the Rhode Island real estate market, and how to sell your abandoned house, it’s time to go out and get it done. Sell my house fast in Warwick!