Wholesaling Condemned Houses in Virginia

The short answer

Can you wholesale a condemned house in Virginia?

Yes. A condemned house can be put under contract and assigned, provided you disclose its status truthfully and respect any licensing limits. Get the exact order from the local building official before signing anything.

A condemnation order typically records that the building official judged the structure unfit to occupy. It might bar anyone from living inside, demand repairs or order the building torn down. Start with the condemned house guide, and see the certificate of occupancy guide for what comes after repairs.

Condemnation can speed up a tax sale: 58.1-3965 points to the first anniversary of delinquency, so owners may have less time than they assume. On a separate track, being paid for two or more contract assignments in one year can satisfy the broker definition in 54.1-2100. The license guide covers that, and the statutes should be rechecked before you act.

The opportunity

Why condemned houses appear in Virginia Beach

Tourists see the oceanfront, but Virginia Beach also contains aging subdivisions, low-lying lots and houses worn down by storms or neglect. Salt air, tidal flooding and frequent deployments can saddle owners with repairs they cannot pay for. Some owners inherited from relatives living elsewhere, while others are landlords who quit. Because most buyers shy away from condemned property, you will meet little competition. Use our ARV guide to estimate what a repaired or rebuilt home might sell for.

Lead sources

Where to find condemned houses in Virginia Beach

• City notices. Public building and code records can show open orders. Ask what Virginia Beach publishes.
• Driving for dollars. Look for posted notices and boarded doors. Use the driving for dollars guide.
• Tax delinquent lists. Unpaid taxes can add pressure. See tax delinquent lists.
• Fire and storm losses. Damage often leads to condemnation. See the fire-damaged house guide.
• Probate cases. Heirs may inherit a condemned house. Try probate leads.

Your exit

Who buys condemned houses in Virginia

Seasoned rehabbers, small builders and landlords tend to be the ones who buy. A few want to fix the structure with permits; others would clear it and start over. A builder may care more about the land than the shell, so pass along lot dimensions and zoning. The buy box guide shows how to find the right ones.

Hand every prospective buyer the order and whatever permits exist, and let them talk to the building office first. Build an inspection window into your contract, following the due diligence guide, so a nasty surprise cannot cost you the deposit.

Step by step

How to start wholesaling condemned houses in Virginia

1. Get the order. Ask for the condemnation notice and any repair or demolition deadlines.
2. Call the city. Confirm what is required to lift the order or clear the lot.
3. Search the title. Check for liens. See how to do a title search.
4. Run the numbers. Use the ARV calculator and MAO calculator, with demolition or repair costs.
5. Sign and disclose. Use a contract based on writing a wholesale offer and say you may assign.
6. Find the buyer. Send the order, photos and lot details to builders and rehabbers.
7. Close safely. Use an investor-friendly title company or a Virginia attorney.

A Virginia Beach heir inherited a bungalow near the Bay after a storm left the roof and walls unsafe. The city had condemned the house, and the family lived hours away. Property taxes were behind, and the heir feared losing the lot.

After reading the order and phoning the building office, you priced both demolition and a rebuild. A new home would be worth about $310,000 and the work would run near $55,000, so you offered $68,000 and stated in the contract that you could assign it. Roughly $7,400 in back taxes and fines would be paid out of proceeds.

A neighborhood builder accepted the assignment and paid you $12,000. The heir closed with an attorney and walked away with cash. You added this deal to your running 12-month count.

Virginia rules to know

Condemnation, taxes and licensing

Under Va. Code 58.1-3965, once the first anniversary of delinquency passes, a structure that the building official condemned can be sold to collect unpaid taxes, and parcels assessed at $100,000 or less may be offered at public auction. Paying everything owed before the sale date lets the owner redeem. Section 55.1-706 deals with pending building or zoning violations. Confirm the details with the treasurer and the building office.

Section 55.1-703 sets out a disclosure statement that works as a buyer-beware disclaimer, yet that is no reason to conceal known defects such as an unsafe-structure order. On the licensing side, a second paid assignment inside a year may satisfy the broker definition in 54.1-2100, and the owner exemption in 54.1-2103 may not stretch far. Our attorney guide can help you find counsel.

Learn it with a mentor

Judge the risk before you sign

These deals raise hard questions. People in our mentorship program send over the condemnation orders and their figures, and we weigh with them whether the numbers justify the risk.

FAQ

Condemned Houses in Virginia: common questions

Keep going

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