Are you mining for diamonds in the rough in today’s piping hot housing market? If you’re digging for buried treasure, purchasing a hoarder home can be a great way to score a killer deal on a property if the location and price are right. However, be warned that flipping a hoarder home is no small undertaking. 

In most cases, investors will need to duck and cover in the face of hoarder home risks like clutter-concealed structural damage, insect infestations, and allergy-triggering mold. However, for those investors who make it out of the hoarder home renovation process unscathed, a significant chunk of change awaits you.

Ready to cash in your hoarder home investment? Here are six things investors should know before investing in a ticking time bomb. 

Realize you can’t confront clutter alone

By definition, hoarding is a compulsive behavior. Some hoarders accumulate possessions, containers, and even pets for years. With this decade’s worth of knick-knacks in mind, getting rid of the clutter by yourself isn’t a realistic strategy.

Luckily, companies like ECS Crime & Trauma Scene Cleanup specialize in homes plagued by excessive hoarding. After a quick phone call, a team of OSHA-certified professionals will come in, clean up the clutter, remove unwanted items, and deal with potentially hazardous waste resulting from hoarding situations. From there, an investor can confront cosmetic defects head-on and transform a worst-case scenario (ridden with water damage and electrical repairs aplenty) into a dream-worthy home. 

You might miss some problems

It can be difficult to spot signs of damage and other issues when a hoarder has covered every inch of their home with clutter. Even a professional home inspector can overlook these damages in certain situations. So be ready for the unexpected and set aside more money than you think you’ll need for repairs.

Don’t expect a well-maintained home

Hoarding can render some areas of a home impossible to access. With a mountain of trinkets and collected bubblegum wrappers blocking walkways, routine vacuuming and mopping may have fallen to the bottom of the homeowner’s priority list. In some cases, previous owners might have failed to keep up with home maintenance for several years. 

With this level of neglect in mind, it’s essential to budget for a complete remodel when purchasing a hoarder home. To give you an idea of prices, remodeling a kitchen should cost around $150 per square foot, while a bedroom should cost a little under $8,000 to remodel.

Financing could be hard to get

The good news is that the initial appraisal of the home will be lower because of the hoarding issue, which means you can purchase the property at an unbeatable price.

However, securing a mortgage might be difficult because the lending institution might not see the property as valuable or have difficulty calculating how much the home will be worth once post-cleanup. In some cases, you might also want to look into financing options for remodeling the house, introducing another hurdle to clear. 

Don’t expect to move in fast

Purchasing a hoarder home usually means you are paying a lower price. Although these additional savings will put an investor in good spirits, a hoarder home buyer shouldn’t expect rainbows and butterflies for the duration of the renovation process. 

Think of hoarder homes as fixer-uppers. These projects aren’t for everyone, but you can get a great deal if you’re willing to put some time, effort, and money into your newest property. 

Review your purchase and sale contract carefully

Your Purchase and Sale Contract is a document that outlines what the seller and buyer are responsible for. Go over this document with a fine-tooth comb, as it will state who is responsible for cleaning up the property.

You can usually land a better price if you agree to take over the clean-up process. Still, you should try negotiating with the seller to see if they can remove some bulky items (i.e., a neglected wardrobe, towers of waste, etc.) blocking entry points or walkways. 

Wrap Up

Buying a hoarder home can be appealing because of the low ask price. However, it’s crucial to familiarize yourself with the nature of the beast before committing to the clean-up and remodeling labor involved. Whatever you do, don’t step into this property investment blinded by blind optimism.