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Zombie Properties: What You Need to Know Before Buying

An Abandoned San Jose House with an Overgrown LawnAre you thinking about making single-family San Jose rental properties as an investment? If that is correct, you need to be aware of the “zombie property” (also called a “zombie foreclosure”) phenomenon. A zombie property is a property that has been abandoned by the owner but has not yet completed the formal foreclosure process. This can create some extra hurdles for potential buyers. This blog post will describe a zombie property and talk about the things you need to understand before purchasing one.

What is a zombie property?

A zombie foreclosure occurs when the homeowner abandons a property before the foreclosure process is complete. If a property owner defaults on their mortgage, they may believe they need to move out immediately, even though foreclosure has just started. Or they may abandon the property for other reasons. Since the foreclosure process hasn’t been accomplished, this zombie property is still owned by the homeowner, not the bank or lender. Generally, these properties wind up vacant for long periods, falling into disrepair and causing safety and property value issues for the entire neighborhood. Moreover, the financial responsibilities of the home continue to pile up for the owner, from property taxes to Home Owners Association assessments and fines – and more.

How can I buy a zombie property?

Therefore, purchasing a zombie property can be complicated. However, this does not negate the fact that you shouldn’t consider purchasing zombie properties; you must be aware of the risks and take extra steps to protect your investment. The following are some tips you need to do if you’re interested in buying a zombie property:

  • Do your research: You must know exactly what you’re getting into before making an offer on a zombie property. This entails researching the property, the neighborhood, and the current market conditions. If you are not familiar with the area, the best ideal approach is to contact a local property management company that knows a lot about investment property transactions.
  • Get a good home inspector: A professional home inspection is even more vital if you want to get a zombie property. It is a good idea to hire a qualified inspector who can detect any and all potential flaws with the property.
  • Have realistic expectations: You need to understand that a zombie property is, by definition, a distressed property. This means that it will likely need both repairs and renovations and may not meet your usual standards. Remember to factor this into your offer price.
  • Get expert help: Acquiring a zombie property can be demanding, so it is advisable to have an experienced real estate agent, San Jose property management company, and attorney on your side. They can help you navigate the process and protect your interests.

If you’re interested in purchasing a zombie property, you need to do your research and consult with an expert first. You can turn a zombie property into a successful investment with some extra care and attention.

At Real Property Management Silicon Valley, we work with rental property investors to find and assess properties for sale. Our local market experts can help you thoroughly assess the market, set accurate rental rates, and optimize your investment. Contact us online to learn more.

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