Complicated experience
On one hand, you’re grieving the loss of a loved one, and on the other, you’re faced with navigating a maze of legal, financial, and tax concerns. If the inheritance includes a home, the situation becomes even more complex. You may feel thankful for the asset, but also overwhelmed by the task of sorting through decades of accumulated belongings. The challenge only intensifies if the home is a hoarder’s property.
Even a hoarder house located in a desirable neighborhood can sometimes spark a bidding war. However, if the property has suffered extensive damage, the cost of repairs could exceed the potential selling price. So, what’s the best approach when you inherit a hoarder’s home? Here’s some expert advice on how to tackle the process, from cleaning out the clutter to assessing the home’s value.
Assess the Mess
Hoarding comes in many forms. Some hoarders may have collections—whether it’s designer clothing with tags still on, rare baseball memorabilia, or vintage movie toys—that could be valuable. In these cases, it might be worthwhile calling in an auction professional to help appraise the collection.
Another common type of hoarding involves piles of old paperwork, magazines, and random household items. If these are simply cluttering the space but not blocking doors or creating unsafe conditions, the solution might be as simple as hiring a junk removal service or a mobile shredding unit to handle the cleanup. But if you suspect any of the items could have significant value—such as first edition books—consider reaching out to an auctioneer first.
Clean it Out
When it comes to cleaning out a hoarder’s home, most experts recommend bringing in professional help. Dealing with inherited hoarder homes presents unique challenges, and professional cleaning services can ease both the physical and emotional burdens of the task. However, be prepared to spend a substantial amount, as professional services can cost thousands of dollars.
The cost of professional services may seem steep, there are significant safety and environmental considerations that make hiring experts the best option. For example, cleaning a home with hazardous materials or biohazards requires specialized equipment and knowledge.
Signs that you may need professional help include:
- Garbage or food containers scattered throughout the house
- Obstructed pathways making it difficult to move through the home
- Animal waste or live animals in the property
- Structural defects or hazardous conditions in the house
A professional service will have the proper tools, including biohazard gear, to handle these kinds of situations safely and efficiently.
Determine Market Value
Before deciding what to do with an inherited hoarder home, it’s important to determine its value. While a typical home sale involves waiting for a buyer’s appraisal, with a hoarder property, it’s wise to get an initial valuation sooner rather than later. A professional appraiser can provide an objective estimate of the home’s worth in its current condition, as well as its potential value after repairs are made. A home inspection is also recommended to identify any structural issues that may need attention. Your local Realtor can provide a wealth of information as well. In Lincoln NE, Bill Budler, Seniors Real Estate Specialist with BancWise Realty, has considerable experience and expertise in this area. (402)641-0060 Bill@BancWise.com
Rehab the House
Most hoarder homes suffer from deferred maintenance, meaning they’ve likely been neglected for years. Clutter can block vital systems, like HVAC units or plumbing, and can prevent homeowners from noticing or addressing problems. Depending on the severity of the issues, some repairs may be minor, while others may require major remediation, such as water damage restoration or mold removal. If the issues are minor, it might be worthwhile fixing them before listing the property to maximize its selling price.
However, if the home has extensive damage, the cost of repairs could quickly escalate into the thousands, making full renovation a less viable option.
Know When to Sell “As Is”
If your home has severe damage and the cost of repairs exceeds the expected increase in value, selling “as is” might be your best bet. However, this comes with its own challenges. Selling a hoarder home in its current condition will likely limit the pool of potential buyers. The home might sit on the market for a long time, leading to carrying costs and the possibility of price reductions. Potential buyers may view it as a risky investment and offer lower bids.
It’s a good idea to only accept offers from buyers who have physically inspected the property to avoid unpleasant surprises or price renegotiations later in the process. This ensures that they have a realistic understanding of the property’s condition. A professional real estate agent can properly represent you in the transaction and provide a great deal of guidance.
Know When to Sell to an Investor
If you prefer not to deal with the hassle of repairs or an extended market listing, consider selling the property to an investor who specializes in distressed homes. These buyers are often more willing to purchase homes “as is,” even if they require significant cleanup and repairs.
The downside is that you won’t get top dollar for the property. Real estate investors typically make their profit by buying homes at a discount, renovating them, and selling for a higher price. However, the advantage is that you’ll be able to sell quickly, without the headache and expense of rehabbing the property yourself and receiving payment in cash right away.
In the end, dealing with an inherited hoarder home can be a challenging and time-consuming process, but with the right approach and professional help, you can navigate the cleanup, repairs, and sale to achieve the best outcome.
