What is the Impact of Hoarding on the Property Value?
There are two main impacts of hoarding on the property value.
- The first consequence is damage to the house.
- The second impact of hoarding on the property value is it will limit the pool of buyers.
What is the Impact of Hoarding on the house?
The range of clutter-hoarding on a house can be a simple clean out of the property to structural damage along with major repair issues like mold removal mitigation, pest infestation of spiders, rodents, bed bugs, fleas, cockroaches etc. Hoarding houses have a smell. Removing that smell can be a specialized cleaning to total removal of the flooring and walls. Hoarding impacts the house in many ways. Read more here about –Living with Hoarding
Who will buy a hoarder’s property?
Any buyer will want to buy hoarder property at a steep discount to the real estate market. The professional real estate investor can look a the hoarder house with a dispassionate prospective. They make it a dollar and cents problem. Therefore they will pay more for the property in the long run.
Is a Hoarded Property Sellable?
A hoarder’s home poses specific health and safety hazards that impact how sellable the house is. There are three common ways to sell a clutter-hoarding house. Here are the 3 main options to sell a hoarded house: “as is”, selling to house flippers, and selling the house after the hoarding mess is cleanedup.
The five levels of hoarding.
The five levels of hoarding established by the Institute for Challenging Disorganization convey a growing list of property degradation and damage. (for more details on the ICD levels – learn more). The five hoarding levels basically are a scale from clutter to unlivable conditions.
The 3 best ways to sell a hoarder house.
The three best ways to sell a hoarder house: 1. Cash “as is” sale to a professional real estate investor, 2. selling the property to house flippers, and 3. selling the house after the cleanup, repair and updating.
1. Selling a Hoarded Property to an “as is” home buyer can be the easiest and most profitable. The “as is” buyer can be an investor who takes the long view on property ownership. The investor buyer can take the cost of clean-up and repairs of the hoarded property and amortize it over the life of the property. Therefore they can offer more for the property.
2. The flipper who buys a clutter-hoarding property will add the cost of the clean-up and repairs up front and minus that amount from the offer price. The owners can get rid of the property but not make as much from the sale.
3. Selling the house after hoarding cleanup can be risky. The clean-up and repair company cannot give a true estimate until the true nature of the clean-up and repairs are known. The owner can get a $10,000 estimate for what is seen, but if the damage is more once the surface stuff is removed, that estimate can grow a lot. Dry rot, mold, structural damage will only be seen once the work begins. That is how a money pit house starts.
What to do with a hoarder’s house?
Everyone is going to handle a hoarding property differently. For some, getting top dollar for the property is key. For another, just moving on from the hoarding house situation is best. One thing is for sure, the impact of a hoarding house is more than money. The house maybe the easiest part of the situation to solve, people are a lot more complicated. I do wish you the best out come from your hoarding house issue.
Private Capital Real Estate Buyers has experience with clutter-hoarding properties. I have already been shocked by how bad things can get. I have seen level 5 houses. So we will be sensitive to your situation and be very professional. No judgement at all. We are property investors and will offer the best “as is” price the local real estate market allows.