Buying A House From A Hoarder

Published on August 26th, 2022

A hoarder house is one in which someone has amassed an excessive number of objects and materials. It is a property that has been overrun with personal belongings by the owner or tenant

This frequently indicates that the hoarder's home and/or property have become disorganized as a result of an abundance of unstructured personal belongings, decreasing property value.

Many of these personal items have no monetary value, causing extreme clutter in the living space, leaving almost no trail, so a hoarder house is essentially a house that has been clutter.

A hoarder means someone who collects an excessive amount of goods and stores them in their home, causing health hazards for the residents.

Compulsive hoarding is an obsessive compulsive disorder or mental illness that is a never-ending battle in which hoarders fight to let go of their possessions. They have a strong emotional attachment to these items and feel extreme stress parting with them.

Things To Consider Before Buying A Hoarder House

Hoarder house buyers should consider these points before investing in a hoarder house.

It's not for everyone

Hoarder properties, like foreclosures, are typically purchased by small real estate investors.

It's a difficult experience because hoarder houses are typically packed from floor to ceiling, and the junk can pose as a real challenge.

You are not purchasing a home, but rather an investment in a project. Prospective buyers should always set aside a significant repairs budget for plumbing fixtures.

There's a significant difference between a cluttered house and a hoarder house

Most homes have clutter, but in hoarder houses, there are areas, and sometimes entire rooms, that the resident cannot access for years.

In severe hoarding situations you may be dealing with mold, bacteria, and rodents in places that haven't been touched in years.

Obtaining a mortgage for a hoarder house may be difficult

Hoarder houses not only require extensive makeovers, but they can be difficult to finance.

Obtaining a mortgage from a mortgage company can be difficult. Banks may be hesitant to provide financing if it is difficult to calculate the future fair market value after repairs and hoarder house cleaning.

However, you could secure a good deal

According to real estate agents, the condition of real estate obviously influences the price. In estate sales, if a hoarder house is not in showing condition, it may sit on the market for a longer period of time and appear less desirable.

This could be advantageous because you will have less competition when buying a hoarder house.

You might never suspect a house is a "hoarder house"

When it comes to buying a hoarder house, keep in mind that real estate professionals rarely list hoarder homes as such; however, certain key terms in a listing can give you a heads up. Look for a property that will be sold "as is."

You won't be able to detect potential issues

The most difficult challenge most traditional buyers or house flippers face when buying a hoarder house "as is" is spotting problems when the property hasn't been cleared out before going on the market.

There may be some hints about the house's condition, such as the floor condition or leaks behind packed cabinets. However, there could be years of neglect hidden beneath the surface that cannot be repaired with new paint. Structure issues may also come into play.

There may be move-in delays

A thorough property inspection is required, and it is beneficial to work with a trusted real estate agent to guide you through the process and bargain with the seller, especially if the issues affect the livability of the entire house.

When buying hoarder houses, real estate agents should warn clients that there could be delays due to getting all the stuff out of the house and thorough hoarder house cleaning. Getting a good price because of the condition of the hoarder home and the extra work required can still be worthwhile.