Abandoned properties offer deep discounts for investors and DIY-minded home buyers, but don’t expect a typical home-buying experience when buying one. These deals require extra preparation: specialized financing, extensive property research and careful budgeting for repairs. You’ll need to plan ahead and do your due diligence on the property to avoid unexpected costs.
Key Takeaways
- Buying an abandoned home involves a nontraditional process, including identifying true ownership, determining legal status and budgeting for major repairs.
- An abandoned property can be purchased at a significant discount, but buyers need to do extensive research on liens and the property’s condition to avoid hidden costs.
- Despite potential risks, abandoned properties offer profitable opportunities for investors and flippers willing to renovate.
What Is An Abandoned Property?
Abandoned properties are homes where owners have walked away, typically due to financial distress like unpaid taxes or foreclosure, but sometimes due to life circumstances like death or divorce. Because they are uncared for, these vacant properties often deteriorate quickly, creating safety hazards and dragging down neighborhood values.
Often, abandoned properties are empty because the home has been foreclosed on by the lender. The exact legal definition of abandoned may vary by location. The U.S. puts a high value on personal property rights, so the government may be hesitant to seize abandoned property unless the home goes into foreclosure.
Abandoned Properties Vs. Vacant Properties
If you want to buy an abandoned house, first make sure it is actually available for purchase. Just because a house is empty doesn’t necessarily mean it’s abandoned.
A vacant property is a home or building that is not currently occupied. This differs from an abandoned property in that vacancy can be long term or temporary and doesn’t necessarily become vacant due to legal issues; it could be undergoing renovations or in transition from one tenant to the next. You cannot purchase a vacant property without the owner’s agreement, unlike an abandoned property, which, in the case of foreclosure, is owned by the bank.
Abandoned Properties Vs. Zombie Properties
A zombie property refers to a property that is in the process of being foreclosed but has not yet been seized by the lender. A homeowner of a zombie property will frequently “abandon” the property, assuming they will lose it to foreclosure, leaving it in a state of limbo – neither claimed by the lender nor occupied by the actual owner. Since the property has not actually been willingly relinquished by the homeowner, it cannot technically be considered abandoned.
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How To Buy An Abandoned Property In 5 Steps
Buying an abandoned house isn’t easy, but it’s possible if you go about it in the right way. Here are five steps you can take to find and buy a house that’s been abandoned.
1. Find An Abandoned Property For Sale
The first step is to find the right abandoned property for sale. You can look for bank-owned properties online, attend property auctions or ask your local tax collector for a list of abandoned properties in the area you want to buy in. Working with a real estate agent can be a good idea, too, as they often have an inside scoop on abandoned homes. You can also search the Multiple Listing Service and real estate apps for foreclosed homes on the auction block.
It’s worth noting that foreclosures are rising as of Q1 2025, ending a nine-month streak of declines, according to real estate analytics firm ATTOM. If you are interested in scooping up a home below market value, it is worth paying attention to the states where foreclosures are on the rise.
2. Determine Whether The House Is Abandoned
Once you have a list of potential properties, you need to determine whether they’re abandoned versus vacant or a zombie property. One of the easiest ways to find abandoned properties for little to no money down is by contacting city hall; the county clerk’s office should be able to look up the address for you. Unless the property was only recently abandoned, they should know if it’s unoccupied.
3. Contact The Property Owner
Next, you’ll need to contact the property owner of the abandoned house. This could be the former homeowner or a bank, but determining ownership can be challenging for abandoned properties. Start at the local county clerk’s office to track down this information.
4. Make A Bid Or An Offer
Once you’ve tracked down the owner, you can make an offer on the house. You can calculate the home’s after-repair value to determine how much you should offer the current owner.
Even though you’ll likely score a discount on the property, it’s still a good idea to pay for a home inspection. An inspection will give you a more accurate idea of any potential problems with the house. You should also make sure there are no liens against the home.
5. Close On The House
Assuming the owner accepts your offer and the inspection goes well, you’re ready to close on the home. Closing on a house involves signing a lot of paperwork, so make sure you take the time to review all of the documents first. You’ll also pay closing costs, which typically add 3% – 6% of the loan amount.
The Pros And Cons Of Buying An Abandoned House
Like any home purchase, there are benefits and drawbacks to purchasing an abandoned property.
The Pros And Cons Of Buying An Abandoned House
Pros Buying an abandoned property can come with the following benefits: | Cons Unfortunately, purchasing this type of property can also come with drawbacks: |
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Lower price: You could buy an abandoned property for well below market value, helping you to make a profit when you do decide to sell. Additionally, if the house has been vacant for a long time and is in a state of disrepair, the bank or city will likely be anxious to get rid of it. | Potentially high maintenance and repair costs: Abandoned houses can come with steep maintenance costs, especially if the home has been neglected for a long time. It’s important to get the home inspected so you know what you’re getting into. |
Less competition: Abandoned houses can be a pain to deal with, and these properties aren’t widely advertised. That means you won’t have as much competition from other home buyers. | Other hidden costs: On top of potentially extensive repair and maintenance costs, an abandoned home may have debts, liens or unpaid property taxes that become your responsibility after purchasing it. |
Opportunity to earn a profit: If you’re an experienced real estate investor, you could earn a profit by buying abandoned houses, fixing them up and flipping them. You could also turn a property into a rental home and earn recurring income from it. | Hard to find: One of the most challenging aspects of buying abandoned properties is finding the right house. Since they aren’t readily available on real estate listing sites, you may have to do a little digging to find the right opportunity. |
How To Find Abandoned Properties For Sale
One of the biggest challenges of buying an abandoned property is finding the right opportunity. These homes aren’t usually available in online listings, and most are sold off the market. Here are six strategies you can use to find abandoned homes for sale:
Hire A Real Estate Agent
A real estate agent (or REALTOR®) can help you find abandoned houses for sale. Real estate agents can find out about opportunities that you may have a hard time locating on your own, and they can help you negotiate for a better price on the home.
Browse Online Listings
Browsing online property listings may help you find abandoned houses for sale. Look for houses that are bank- or government-owned or houses available for short sale.
Attend A Property Auction
Attending an auction is another way to find abandoned houses for sale. You can visit local auctions and check out online real estate auctions through sites like Auction.com.
Drive Around Your Area
You may be able to find abandoned properties by driving around your community and looking for the telltale signs. If you see a home with overgrown weeds and/or broken windows that is in a general state of disrepair, there’s a good chance it’s an abandoned, vacant or zombie property.
Visit The Local Tax Collector
You can also visit your county tax collector and ask for a list of properties that are unoccupied or have unpaid taxes. From there, you can follow up on each of these properties to find out if they’ve been abandoned.
FAQ
The Bottom Line
Abandoned properties can offer significant savings for home buyers, flippers and investors. Before making an offer, conduct thorough research: Review the property’s financial history, understand any outstanding liens or back taxes on the home and make sure to budget for a comprehensive inspection. These upfront costs protect you from expensive surprises later, as abandoned homes are often in distress by the time they go up for sale.

Maya Dollarhide
Maya Dollarhide is a freelance writer with over a decade of experience covering personal finance topics. Her writing credits include AARP, Bankrate, Investopedia, CNN.com, Yahoo Finance and Lending Tree. She enjoys writing articles and producing multimedia content that helps individuals and families make informed decisions about their money, from mortgages and home loans to reducing credit card debt and saving for retirement. She has also created educational materials for use in schools to teach young people about personal finance, from opening up a bank account to saving for college and beyond.