Why search for a hoard house?
1- They scare away many buyers as the house itself often looks in worse shape than it actually is.
2- The owners very likely have lived there a long time and there is a chance of high equity in the house making owners more likely to sell.
3- The owner will not be able to make it presentable to put it on the market and there is a better chance of getting it off market.
4- You have a better chance of getting it for under market value.
5- You will most likely only end up competing with other investors and not end users.
The neighbors will appreciate what you do to the house!
1- Many of the neighbors will be supportive of what you do as they are happy to see the hoard disappear!
2- The city will be happy as there are likely violations given by the city and the house could be a neighborhood eyesore. You may even get some special considerations from the local jurisdiction as they want it to be cleaned up.
3- Your remodel will be a dramatic change to the neighborhood.
How do you find a hoard house?
1- Search for homes that have been owned 20 plus years.
2- Search for absentee owners.
3- Probates can be a good source.
4- Pre-foreclosures or short sales can be hoards.
5- Drive neighborhoods looking for distressed homes that appear to be hoards.
Our Hoard Story:
In the late summer of 2014, we went into contract on a short sale property in Berkeley that was a deep 20 plus year hoard situation. The seller was about to be foreclosed on the property and the short sale was his opportunity to get out with cash for keys. He was hoping to move out of state so we provided a shipping container as part of the terms of the transaction. It took over three months for the deal to close, but we were patient as the house was priced under market value because of the extreme condition.
The yard was massively overgrown covering tons of construction debris and scrap metal. The inside of the house was packed full of construction materials, tools and personal items. It was difficult to even walk throughout the house. Although extremely dirty, we could see the potential buried beneath so much stuff. The house was actually a beautiful old craftsman that was very structurally sound.
All said, we took out over 42 tons of scrap metal, construction materials, tools, equipment, and garbage from the house! It left a tall ceiling large basement that could be remodeled into a walk out master suite, family room, media room, laundry, storage and another bathroom all of which added almost 1600 square feet to the existing house without changing the footprint. The upstairs was completely remodeled too that accentuated the original craftsman features of the house.
The two open houses drew a crowd of over 300 people, many of which were curious and excited neighbors that couldn’t wait to view the transformation in person. The crowds at the open house created a palpable buzz of excitement!
In the end, all the patience, hard work, and dedication paid off. At the time of sale, the house reset the market and earned our company it’s largest profit to date.
If you want to hear more about our story or see more samples of our home renovations, go to https://www.facebook.com/GoldenRoadRealty/
