Around the country, in most states, each county government has a  Health Department. Typically, someone from the Health Department is contacted by a county property appraiser or a neighbor of a property that appears to have been abandoned or the current occupants have allowed the property to deteriorate to the point that it may be unsafe to continue using the property as a residence. Then the Health Department sends out an inspector to make a detailed assessment of the property in terms of suitability for continued use as a residence. Each county will have its own specifics, but all focus on health safety and habitability issues in reaching a determination. If warranted, the Health Department will then issue a finding with a specific list of repairs that will be required to be completed either by a specified date if the house is occupied or repairs that will need to be completed before someone can move in.

At some point in the process, if the owner fails to complete the required repairs, the Health Department will “condemn” the property as being unsuitable for occupancy, place a certificate/sign on the property stating that it has been condemned and, anyone choosing to occupy the property in its current condition is subject to arrest. There are many shades of habitability and reasons the Health Department can restrict access to a property and, you’ll need to check with yours for the list. It could be something as simple as several windows being busted, allowing all elements of weather in, to a failed roof or a failed plumbing system.

In any event, the “condemned” property address makes onto a list maintained by the Health Department who, in almost all instances, will make it available to you for a fee. In different jurisdictions, I have seen fees range from $25 to $125 for a copy of the list. The list will typically have the owner’s name, but not necessarily his current mailing address. Depending on how long the owner has been absent from the property, the county list or the tax record on your MLS may have the owner’s current address.

In the past, I have periodically sent mailings (125 to 200) to owners I thought I had good addresses for. Before I sent the mailings, I lined up several “spot” builders (General Contractors or Builders who regularly put up single family homes on lots where an entire subdivision of lots was not available), before I sent the letters. I mailed the letters first class postage (with Address Correction Requested) and, essentially, told them that I had several builders who may be interested in their property located at “X” address. Now, as you might suspect, I had no idea when I sent the letters out if any of the builders would be interested, because no one had all the details of what was wrong at the site, what type of neighborhood it was for long-term potential and what price the owner may try to insist on receiving, if he is willing to sell. 

I can tell you from personal experience, this works. If you are willing to put a decent prospecting letter and approach together, you will get listings. Sometimes, I am asked to list their current home as well. About five years ago, one condemned property listing resulted in three transactions in four months and about $38,000 in commissions. Yes, it’s work. Yes, I visited a fair number of properties that I never listed, but my income for this effort more than compensated for the marketing and preview activities

Has anyone else worked this kind of list? Similar or different results? What approach(es) did you try and what worked best? Can you recommend other niches that agents typically don’t go after that maybe we should?