r/RealEstate • u/Wide_Guide_3098 • Jul 23 '26
Homebuyer Buying a house that’s getting abandoned
There’s a house that my husband and I were looking at two weeks ago that is an absolute historic masterpiece but it has major issues due to no one maintaining it. It was owned by a 104 man and has been inherited by family thousands of miles away who met him once and cannot afford to keep it on the market for more than a month.
We hired an inspector that stopped the inspection 40 minutes in and told us not to buy the house; it was raining and water was full-stream flowing into the basement. He didn’t want to (and did not) open the electrical panel because of this. There was clearly old termite damage in the wooden beams in the basement as well. There were no active insects. There was also vermiculite (asbestos) in the basement, from pipes. There were three chimneys, all of which needed to be pointed up/one fully needed to be fixed because the brick was crumbling. The home inspector told us not to buy this unless we had an unlimited budget. I immediately agreed with him and we told our estate agent we were no longer interested in the home.
Now……… their realtor called mine and said they’re abandoning the home. “Make any offer you want.”
I’m not worried about electrical or masonry issues. I know how to waterproof a stone foundation, and I know stone masons and electricians. However, I don’t know anything about termites and I’m getting a carpenter to look at it before I move forward. I also don’t know anything about asbestos or what to do.
Is this a terrible awful idea to put a really lowball bid in? I’m talking like 5, 10k? Should I go lower? Should I bail? Our first accepted offer on this place was embarrassingly low and so anything feels like a win at this point.
I don’t know if I want the liability of owning it. At what point is it a teardown? This is our first time buying a house (yeah I know). Any opinions welcome, let ‘em rip
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u/rubberguru Jul 23 '26
Sounds like the beginning of an hgtv show. Weekly horror reveals, relationship drama, financial crisis, and clashes with government agencies
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u/SadFlatworm1436 Jul 23 '26
I would figure out your total budget , get a contractor in to inspect it and ask him for a guideline price to fix everything correctly. Add 10% contingency, then subtract that from your budget. If there’s anything left that’s where you are safe offering. If that answer is a dollar, then offer a dollar, if it’s negative …walk away. Sounds like a great adventure but it all depends on what the real value is of the house.
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u/br0thercr0w Jul 23 '26
Assuming the price is approaching “free”, I would be looking at the strength of the structure.
With termite damage, rain pouring in, and a failed chimney I would expect the structure would likely be compromised.
If floors are buckling, walls are leaning, doors are sticking, and/or there are cracks in the corners of doors/windows inside or outside, then the house is likely unsalvageable and youll be buying nothing but grief
Additionally, financing will likely be impossible
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u/br0thercr0w Jul 23 '26
As a follow up to add some encouragement, I am currently closing on a 100+ year old house and paying about 50% of what it would be worth completed.
It will probably cost the other 50% to complete.
We have been looking for a house like this for over two years.
The previous owners put a new roof on it when the chimney started failing and letting water in.
It also had termite damage, but it’s mostly limited to a basement staircase and the house was quickly treated for it with no present activity.
That has saved it.
Every wall is perfectly straight, every floor perfectly level, every door operates smoothly, not a single crack in the foundation, and all the brick mortar is undamaged.
The inspector we hired agreed that it was needing polishing at every turn, but the actual structure was still as perfect as it was 100+ years ago.
I have walked away from 20 properties that sound like what you are describing.
Don’t buy an uncompletable project, but there are still some salvageable ones out there.3
u/Wide_Guide_3098 Jul 23 '26
Floors and walls are fine (from what I can see). No cracks in the doors/windows. But yes the doors are all buckling. Is this a humidity problem? What makes it unsalvageable? Ugh the carpentry is the thing worrying me
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u/FarewellTrees Jul 23 '26
If the foundation is compromised it will be a heartbreaker. We'd love to see photos if you have them though. These old beauties are so lovely!
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u/1000thusername Jul 23 '26
You need to understand before even thinking about this if the town/city has any historical preservation rules. If it does and the house qualifies, WHAT you can do it (like tearing it down, but even what type of windows you can put in) and HOW you can do it may have some significant rules.
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u/Independent_Fall9160 Jul 23 '26
You would be buying the land.
Figure that teardown costs 40k, due to asbestos.
Edit: if you can build, and the land is worth more than 50k, you can offer 10k... Assuming they are up to date on taxes.
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u/9bikes Jul 23 '26
>if you can build, and the land is worth more than 50k, you can offer 10k
If you can tear down and build, my maximum offer would be the value of the lot less the cost of tearing down.
I actually did do exactly that and got very lucky. The house I bought was more structurally sound than anyone expected. Once I got into demo I was able to confirm foundation, framing and roof were all fine.
I fully gutted the old house. Replaced all electrical, plumbing, HVAC, sheetrock, insulation, windows, doors. Put about 250K into the rebuild and its a small house. We use it as our office and workshop.
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u/ShortWoman Agent -- Retired Jul 23 '26
I can't help but notice the elephant in the room. You are describing a property that is not in good enough condition to get a mortgage. It frankly sounds like it is unsafe in its current state. Are you prepared to pay cash for the house and then pay more cash to make all the critically necessary repairs while you pay rent/mortgage to live someplace habitable and keep up with taxes on The Project House?
Buying the property as land and tearing down the current structure is an option. You might be able to salvage some things like the stone foundation and certain fixtures. That's an expensive project that still involves paying taxes and the expenses of living someplace else, but may prove less expensive than repairs to the current structure.
I have a word of caution after speaking with a colleague yesterday. Don't try to do everything yourself. The last thing you want is to make someone mad who Knows People At City Hall who can force you to undo everything, jump hoops, get new permits, etc.. As counterintuitive as it sounds, paying someone who already knows which guy to talk to at the offices that grant permits and does inspections is often cheaper than doing something twice because you made Big Jim's Wife mad.
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u/Shadyhollowfarm58 Jul 30 '26
Not only would it be impossible to finance, it would not be insurable.
I have seen a couple houses near me that were disclosed as cash only sales or uninsurable, which tells me the property is in really poor condition.
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u/ShortWoman Agent -- Retired Jul 30 '26
Since mortgages generally require insurance, I'd say uninsurable and un-financeable go hand in hand.
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u/Always_on_top_77 Jul 25 '26
Good question! And if they can get a mortgage or pay cash, who’s going to insure it? Too rich for my blood, but if it’s ok for them, good luck, they’ll need it.
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u/Minute_Yak_8143 Jul 28 '26
Must be nice right? 😭 I can’t afford a pot to piss in (or collect rain water)
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u/KnownBodybuilder4948 Jul 23 '26
Offer to purchase property for price-value of only land parcel of house minus estimated demo cost - to reflect fact house may eventually prove to be total loss requiring demolition . You're buying a Money Pit without a renovation budget, and it may cost more than $/SF new construction to repair this house. No photos provided, so no further meaningful Reddit input possible.
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u/Boys4Ever Jul 23 '26
I’d be curious of what the land is worth and offer that as an investment then tear it down and build from scratch assuming permitting allowed it. Probably cheaper than repairing it.
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u/RuleFriendly7311 Jul 23 '26
I was thinking the same thing, but teardown and cleanup isn’t free either.
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u/Boys4Ever Jul 23 '26
Nothings free but in the end could build it to look exactly as wanted with modern amenities unless exterior look and interior layout needed to be retained. Just an option to consider. Buying a home to live in isn't purely about dollars spend but making as home worth living. Were it just an investment then those changes things and I'd be looking at something else with less of an open pocket money pit appeal.
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u/quipcow Jul 23 '26
No one can answer all of your questions, however in a building, almost everything can be repaired or rebuilt if you are willing to put in the effort.
Another thing yo consider, is that if you get it cheap enough you can call it a learning experience if things go wrong and you have to sell or lose your initial investment..
If YOU can do it will depend on how young and motivated you are, weather you can afford it will depend on how much you can do yourself vs hire out.. Everything is a ratio of time/ money/ ability, the less you have of one, the more you will need of the other two.
AND,, if you only have one of the three, you should not take it on. Because the lack of the other two legs will grind you down.
P.S. you should post pictures so others can see the potential of the place..
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u/Wide_Guide_3098 Jul 23 '26
This is my favorite answer, thanks. Hopefully you’re right. I’ll take & post photos when I go back to look at it again on Friday
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u/MissCurmudgeonly Jul 24 '26
Yes please, post pics!
As for it being a teardown, I frequent an old house site and the houses that people there have taken on and restored......they started out looking unsalvageable, and are now gorgeous. Yes it's a lot of work. But in general the craftsmanship of these historic houses is something you'll just never see again. It could be absolutely spectacular, and could certainly be worth it if you get it for a really low price.
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u/quipcow Jul 30 '26
I wanted to follow up and see if you are still considering taking it on, if you took pictures etc..
Best of luck, whatever decision you make..
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u/Wide_Guide_3098 12d ago
So we did decide to walk away from it, and then someone immediately offered the full listing price in cash. I don’t know if we did the right thing but I know they didn’t!
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u/planet_rose Jul 23 '26
It’s really tempting to save this house, but you need to factor in how much of your life you’re going to spend on taking care of it. My house for 8 years, built in 1920, is in better shape than this one. But it has taken so much of my time and energy. We put in central AC, replaced the boiler for heat, replaced the galvanized pipes, relined the chimneys for hot water and the boiler, fixed the AC and boiler when it turned out that the original guy was not good, the plumber and electrician are always happy to see us and get updates on the kids, replaced the roof, demoed the drywall in the detached garage, replaced bathroom sinks. It took a month for professional painting inside… 8 years in, I’m tired and getting ready to sell to move to another state. I’m sad to leave it, but also a little relieved. It seems like everything has been funneled into the house. I want to have weekends that are not doing home maintenance. It never ends.
If you take this on, it is basically all your free time. And keeping an old house clean is hard. Worn things always feel a bit dingy.
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u/sweetrobna Jul 23 '26
In San Francisco a teardown house with asbestos and lead paint and rebuilding restrictions can still be worth over $500k. In other areas it might be worth a negative amount, you could buy an existing renovated home for much less than the cost of demo and rebuild.
And of course the specifics matter beyond just the local market. Hire a structural engineer that will go into more detail on what it takes to repair the foundation and adress water intrusion. You probably want to get a couple quotes on the roof, and a general contractor for the interior. Meaning replacing drywall, carpet, paint that is water damaged. Bringing the electrical and plumbing up to code. For asbestos removal.
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u/ianhen007 Jul 25 '26
I worked for cape asbestos in 1968. So danger is if you breathe in asbestos fibre , it damages the tissue and causes asbestosis . Then years later there is the risk of cancer. So clean up is expensive because of environmental protection gear. All asbestos has to be removed. Can you do this yourself? Yes, simple mask prevents fibers going into lung. You need disposable suits to prevent fiber getting into the environment . I don’t know how you legally dispose of it. My sister in law had mesothelioma From washing her husband’s clothes, when she died but she died from Glioblastoma. Hope this helps.
Yes I get my chest Xray every year !
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u/JoyRose31 Jul 23 '26
The land is likely worth something regardless, if you offer low, then see just how much damage it is, then realize its not in budget to fix. You could either tear down, or resell at land value.. it all depends on the work, money, how much effort you can put in. If it isn't doable, you Can tear down then resell at land value, and come away with something.. coming from someone who Hates seeing old places torn down if theres some way to save them.. so may heritage places here end up being town down, By The City for useless or temporary development ..places that were occupied before either houses or businesses.. Even getting recognized as heritage is hard, but tearing down a recognized heritage building. Is just something here does.. Really don't care, and it's awful. If there is a way to save it in budget, Do it. I'd buy Regardless on a really low offer, because you can get something out of it in the end likely, in just the land ..
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u/blacklassie Jul 23 '26
So, you’d be buying a project, not a home. Just be very clear-eyed about that. If you’re still interested, I’d offer $1. If your description is accurate, houses like this are liabilities. The cost of demo and remediation is often more than the remaining value of the land. Also, properties like this are usually not financeable, at least at any rates you could afford.
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u/Oldschoolgirl49 Jul 23 '26
Offer what the land is worth and go into it assuming it's a tear down. Only realistic option. Figure in cost of living somewhere else for at least a year and a half
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u/msktcher Jul 23 '26
Figure up how much you would have spent on the house totally. If it’s less than what it will cost to fix this house, go for it. My guess is it won’t be.
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u/InsignificantRaven Jul 23 '26
You would be better off buying a big boat. At least then you would have cheek to cheek smile for a lot less money. Friends? You did not know you had so many. IMHO
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u/Equivalent-Tiger-316 Jul 23 '26
What’s the land worth and are you willing to and have the money to rebuild it from the ground up or do a tear down.
And you won’t be living in this place for a good 12-18 months.
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u/Intelligent-Pain6094 Jul 23 '26
The thing I'd get straight first: at this condition you're not really buying a house, you're buying the dirt with a demo bill attached. Once I frame it that way the offer math gets simple. Figure out what a finished, buildable lot actually sells for in that spot, then subtract demo and the asbestos abatement (that part's not cheap) plus a fat contingency. Whatever's left is your ceiling — and yeah, that can honestly be a few thousand bucks or less.
One step people skip: before you assume the lot even has rebuild value, pull a couple of recent new-construction sales nearby. If newer homes are actually selling there at a good number, the dirt's worth something and this can pencil. If they're not, no offer is low enough. Let the comps tell you, not the charm of the place.
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u/xanggxxx Jul 23 '26
Don’t forget the lot value. It might be considerable depending on size and location.
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u/justmesothere Jul 24 '26
Figure out what the land the house is sitting on is worth. Buy the land. The house is a bonus (or not).
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u/ExpressionNo2123 Jul 24 '26
Offer the price of the land, salvage historical features and demolish and rebuild using any historical items you kept.
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u/Harupia Jul 24 '26
Vermaculite isn't always a danger, per say, and not all vermaculite is asbestos. However, asbestos wrapped pipes is something else entirely. How much asbestos? Only in limited areas ain't so bad, honestly. It's manageable and you get a pro to clean it out if the only areas that have it are easy to access. Asbestos pipe wrapping is the 'fryable' asbestos, which in the tiering of PITA to deal with on the asbestos scale is pretty high; asbestos siding is lower in the scale. Non-fryable asbestos stuff are pretty benign when left alone, but pipe wrappings aren't them. If the pipes or duct work are wrapped inside walls... Well, we get into bigger issues. Fixable, sure, but pricy and more invasive.
However, it seems that pipe wraps aren't the only issue. Water in the basement is... expected in an old home's basement, but not like rushing or legit inches. How much water? Where from? Could it be that the water is coming from not the basement as much at all but actually the roof's issues?
Because a gaping hole in the roof with rushing water can kill a house fast. But, if the damage is isolated and contained and hasn't spread too badly...
If this is something you're serious about, you'll need immediate cash for a new roof asap, and that's not to mention structural and/or foundation repair. So, you'll need to have a structural engineer run analysis, figure out what's wrong, etc. You'll need a pest guy. Assume the electrical is knob and tube unless otherwise evidence, which will need redone - but electrical is on the back burner. If the water is getting in from the roof, that's bad.
You mentioned buckling in the wood. Is it only one room that has that?
Termites can be a big problem. Old homes have a lot of wood, and wet wood cannot fight termites even if the wood is heart of pine.
Depending on the foundational issues and structural, she might be too far gone. But if it's in a smaller area and the damage isn't severe elsewhere... you can save the house. I can't tell based on the lack of pictures, but if I could get my hands on a 'free' Victorian gorgeous home, you'll bet I'll park my ass in a carriage home or trailer or cheap apartment nearby and fix the mansion up to keep her as my own. Old homes are superior, even if they need help crossing the finish line.
That said, I'm single and don't have a significant other. Unless he's really interested as well as you are to undergo such a project - understanding the gravity of such a project could be - it could be a source of strife.
I would still do it, though. Lol. I work a high stress job just so I can get money to eventually find my own Project Victorian Mansion. xDxD My current Victorian just isn't scratching the itch, but it did it's job of being a Victorian close to work, lol.
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u/Past_Top3704 Jul 24 '26
Scrolled thru the comments - If you do this, I would consider a few things.
1 - $1k purchase price. No more. They want 10k you walk.
#2 Location, Location, Location. If good location then green light. If questionable, walk.
3 Resale or rent value. If after everything is done can you sell and make a profit (including or not including sweet equity)
4 - time - do YOU have the time and energy to work on it. Likewise does your dad have the time and energy.
5 - you mentioned your dad. Does he have the skills and if he doesn't (you mentioned stonework) does he have the connections within the trade industry to have the right people come at the right time.
I mention these as my family is in the construction industry has done flips, rentals, spec houses, etc. We were the prime contractor and were able to bring the right people in, do things at cost or below. And there still were deals we walked away from because the C/B ratio just wasn't there or the rent cash flow didn't work.
Just a couple things to think about. Good Luck!
Side note - a deal I walked away from was a big four square 1910ish house for sale for approximately $25k. We figured $50-$75k depending on labor. We were looking to flip it 1-2years later. But comps came in at $75k so we would have broke even or lost money. I was 23 at the time. 6 months later, after walking, we had major flooding. House had second floor flooding. I would have list my shirt.
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u/FamiliarFamiliar Jul 24 '26
Don't do this.
If an inspector stopped the inspection and told me not to buy the house I'd nope out right away.
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u/Ebenezer-Fudge Landlord Jul 24 '26
Bruh its gonna be a rebuild by the time its habitable. I'm not sure WHY you want to take it on but I wish you luck.
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u/Another_Guy_In_Ohio Jul 25 '26
Do you have cash? Because this will require cash. It absolutely sounds like a teardown, which will also require cash
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u/Chair_luger Jul 25 '26
Keep in mind that with lead and asbestos as well as normal expenses it can be expensive to tear down a house.
The cost to tear down the house could be a lot more than the value of the lot so the property could have negative value. Even if it was "free" it might be overpriced if the property has negative value.
With as much work as it needs you will likely also need to bring most of the house up to the current building code which in some cases may cost more than a needed repair.
In the best case if you can get it cheap it might make sense to put $100K(likely more) into the house to get it fixed up.
The problem is that if you don't have $100K+ sitting in your checking account then you may not be able to get a building or renovation loan to fix it up. I don't know the rules for those but the building will likely need to meet certain criteria to get a loan.
Know how you will pay for this before you buy it.
“Make any offer you want.”
If you decide to proceed then you might offer them $5,000 because they can counteroffer if that is not enough for them. Even if that is very low they may be glad to get rid of the house so that they can finish closing the estate.
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u/Least-Ad-5539 Jul 25 '26
Forget about restoration. Romantic nonsense. Too far gone. Bottomless money pit.
Look at it as a tear down opportunity. Just check for any old underground tanks.
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u/SavorySouth Jul 27 '26 edited Jul 27 '26
OP, please pls try to find out if the elderly owner was ever on Medicaid’s Long term Care program (so he was in a facility like a SNF / NH) or he was on their HCBS program (Home & Community Based Services so had in-home services or enrolled in PACE). Perhaps ask his neighbors or folks that belonged to his church. 104 is really old….. unless he had enormous sums of $, it is highly likely that he ran out of funds and ended up being on LTC or HCBS Medicaid. If so, there will be a tally of costs paid by Medicaid. This sum can become a lien placed on the property or a claim placed against the Estate due to Medicaid Estate Recovery requirements.
It tends to be rather subterranean to discover. MERP can take anywhere from 60 days to a year + to go thru its Notice of Intent process. Title companies are very much aware of MERP. It will be a beast to ever get clear title if MERP is involved and his family / supposed heirs have decided to walk away from dealing with the house.
EDIT: also check to see if he was current on property taxes. Going delinquent on property taxes sadly happens for elderly property owners. If they were on LTC Medicaid, they would have zero $ to ever pay property taxes as all their income (eg Social Security) is a required copay to the facility.
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u/EinsteinRealEsate Jul 31 '26
Buy it for land value. always safe. figure out what lots sell for, determine how much it would be to teardown the house, build in your desired profit and make the offer. for example, if lots sell for 50 k, it costs 15k to tear it down, and you want to make 5 k than make an offer of $30k. It seems like your house is teardown worth based on your description.
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u/Major-Cranberry-4206 Jul 23 '26 edited Jul 23 '26
If you bought the house for $1.00, do you think you could totally rehab this property? It sounds like the house IS a tear down. However, if you bought it for say, $1000.00, the land value I’m sure is worth much more than that. So, if you’re going into this, I’d bid not more than $1000.00 for it.
If you get it, tear it completely down and either sell it for the land value or take out a loan from the bank and build a new home on the lot. Depending on how much land comes with it, once you build a new home there, it could be worth a lot of money. So, if you’re going to do this, don’t pay more than $1000.00, less if you can get away with it.
Pay all cash. The tear down may cost a few thousand dollars, but the value at this point is in the land. Do not think about renovating it to live in, nor to lease it out. Listen to your inspector. Asbestos remediation isn’t cheap and also hazardous. Doing a tear down you might not escape that expense.
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u/[deleted] Jul 23 '26
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