Hoarder House Wholesaling: Safety, Profit, Success
Intro: Wholesaling a Hoarder Home
In this article, we will go over the potential benefits of wholesaling a hoarding house. We will go over some safety concerns, some potential hazards involved, as well as some tips on cleaning the home.
After purchasing dozens of homes such as this, I have gained some great insight for anyone who has not dealt with a hoarding home as of yet or has dealt with it but felt like they were overwhelmed. I also have a few tips on how to help the hoarder through the process.
Don't forget to subscribe to be the first to get the newest articles.
What is a Hoarder House?
A hoarder house is a property where an individual accumulates an excessive amount of possessions (junk to most of us). Often they collect so much stuff that a person can barely walk through the home, making the home basically unlivable.
Hoarding is typically associated with an individual having trouble getting rid of any belongings and collecting for sometimes a lifetime.
Home Hazards
Hoarder homes can create multiple hazards within the house. the following are 5 examples of hazards that you should look out for if visiting a hoarder home:
Fire Hazards
Accumulated clutter creates an incredibly dangerous home where a fire will spread quickly if a fire does happen to start. With all the stuff in the way, a quick exit will be difficult putting anyone in the home at risk.
Health Risks
Hoarding often leads to an unsanitary home, fostering the growth of molds, bacteria, and pests. Excessive clutter can make it difficult to clean and maintain proper hygiene, possibly leading to respiratory issues, infections, and other health problems. When visiting a hoarder's home it is a great idea to wear a mask and gloves. For more on mold check out the guide on www.epa.gov.
Structural Damage
The weight of accumulated junk (possessions) can strain the structural integrity of the home, causing large cracks in the foundation, structural beams, or just some major shifting. Over an extended period, you will see damage to the floors, walls, and ceilings. I have seen a home where water had been leaking from a tub for possibly a few decades making the whole second floor completely unsafe with major water damage.
Tripping and Falling
It might be obvious but with all the stuff in the way you have to be extra careful walking through a hoarder house. The person(s) living there may know their way around but to someone walking in there for the first time, you will have to be extra diligent.
Social Isolation and Stigma
Hoarding often leads to social withdrawal and isolation as individuals living in the home may feel embarrassed or ashamed about the condition of their home. This can strain relationships with family and friends and contribute to feelings of loneliness and depression, exacerbating the challenges of addressing the hoarding behavior.
Check out my Resource Page for some of the top software to help you on your Real Estate Journey
What To Look For In a Hoarder Home
If you are into wholesaling and come across a hoarder home, it may be overwhelming making you uncertain if this would be a good deal. I have looked through too many hoarder homes to count and the following is my list of things to watch out for.
Extent of Hoarding
Assess the severity of hoarding within the home, yard, and garage. Look for signs of excessive clutter, blocked pathways, and compromised living spaces. It is important you can see the whole home if a basement is full from top to bottom and you cannot see the foundation, you will want to consider this in your numbers.
Structural Integrity
To just go over my first point again, make sure you can get a good sight of the structural integrity. Determine if the hoarding has caused any major or minor damage. Look for signs of leaks, water damage, mold, or pest infestations.
Cost Of Cleanup
Evaluate how much junk there is in the home and how much it may cost to remove it all. What will it cost to clean up the space afterward? The worst I have seen so far was a small single-family home (SFH) where we had to remove 140 yards of junk, depending on where you live this can cost upwards of $5000 to remove the junk and another thousand to have it cleaned up.
The Extent of Renovations Needed
It may be hard to see but you will have to consider how much work will be needed for your end buyer to flip or brrr the deal. Will you need new flooring, paint, kitchen cupboards, and countertops, do you need to gut a bathroom or two? All this needs to be added to your calculations.
Hoarder House Cleaning
Once the property has been cleared, cleaning the home proves to be a challenge and there are several factors to consider.
Safety Precautions
Make sure you take safety seriously, wear appropriate PPE such as gloves, masks, and goggles, and make sure the home is well-ventilated with some open windows.
Surface Cleaning
Start with cleaning the surfaces. Disinfect high-touch surfaces such as countertops, doorknobs, and light switches to eliminate the spreading of additional germs. Remove any remaining debris, dust, or cobwebs from walls, ceilings, and floors using a vacuum or broom.
Deep Cleaning
Deep clean the entire home, including kitchens, bathrooms, and living areas. scrub and sanitize fixtures, appliances (if they are ruined completely), and all other surfaces. Use a good heavy-duty cleaner for this. If carpets are even worth saving, have them steam-cleaned as well as any other upholstery to remove any deep dirt.
Odor Removal
Every hoarder home has a distinct odor i find, I cannot pin point it because its hard to breath in for a prolonged period of time. Make sure these odors are addressed using odor-neutralizing products. Consider purchasing an air purifier to improve the air quality.
Will A Hoarder Home Sell
The short answer is yes, for the right price. This is where you have to do your due diligence and consider all factors in your numbers making sure you get the best price possible.
Be Transparent
Always, and I mean always, be transparent with both the homeowner as well as the buyer as to what is going on. If the homeowner is aware you will be assigning the contract and the buyer is fully aware that it is a hoarding issue you will not get anyone upset, creating additional issues.
Investor Interest
Depending on where the market is sitting, investors might be on the prowl for a new investment. You always have to consider whether we are in a buyer's market or a seller's market. Also how much interest is there in the specific neighborhood where the property is located? A hoarding home will sell much faster in a B-grade neighborhood rather than in a C or D-grade area.
Profit Potential
Discuss the potential profit margins to your buyers, assuring them it is a great deal and that although a lot of work may be involved there is a lot of money to be made in the back end.
Networking
Highlight the importance of networking with investors, rehabbers, and other real estate professionals who may have an interest in hoarder properties. Building relationships with these individuals can lead to opportunities for wholesaling deals.
Support Resources
Offer support and resources to buyers or investors who may need assistance with the cleanup and renovation process. This could include connecting them with reputable contractors, cleaning services, or other professionals experienced in dealing with hoarder properties.
How To Help A Hoarder
Helping a hoarder when buying their house involves empathy, patience, and practical assistance. Start by listening to their concerns and understanding their attachment to belongings. Offer support in decluttering, organizing, and cleaning the home, ensuring safety and respect throughout the process. Provide access to professional resources such as therapists, organizers, and cleaning services. Establish clear boundaries and offer ongoing assistance as needed. Prioritize their well-being and emotional health while navigating the complexities of selling their home. With understanding and support, the transition can be smoother, leading to a positive outcome for both the hoarder and the buyer.
Outro
Dealing with hoarder homes presents unique challenges, from safety concerns to the emotional and logistical complexities involved in cleaning and selling these properties. Through years of experience and countless transactions, I've gained valuable insights into navigating the process of wholesaling hoarder homes. From identifying potential hazards to maximizing profit potential, my goal is to equip you with the knowledge and resources needed to succeed in this niche market.
By offering transparency, understanding, and practical support, we can facilitate a smoother transition for both the hoarder and the buyer. Together, we can navigate the complexities of selling hoarder homes, ensuring a positive outcome for all parties involved.
Don't forget to subscribe to stay updated on the latest articles and resources to support you on your real estate journey. Thank you for your trust and partnership.
Check out my Resource Page for some of the top software to help you on your Real Estate Journey
FAQ
What is hoarding?
Hoarding is a persistent difficulty in discarding or parting with possessions, regardless of their actual value, leading to excessive accumulation and clutter in living spaces.
Is hoarding a mental illness?
Yes, hoarding disorder is recognized as a mental illness characterized by persistent difficulty discarding possessions, strong urges to save items, and significant distress or impairment in functioning due to clutter. hoarding can also be caused by other mental disorders or depression.
For more information on hoarding disorder, check out the article from mayoclinic.org
What are the 4 levels of hoarding?
Level 1 the clutter is minimal, and all living spaces are clear and usable. There may be slight disorganization or clutter in one or two areas, but it does not significantly impact daily functioning.
Level 2 Clutter is noticeable and encroaches upon some living spaces. There may be moderate disorganization, and some areas may be difficult to access or use as intended due to clutter accumulation.
Level 3 Clutter is excessive and impairs the use of several living spaces. Many areas of the home are cluttered, making them difficult to navigate or use for their intended purpose. Basic household functions may be compromised.
Level 4 clutter is extreme, and most, if not all, living spaces are unusable. The home may be filled with clutter from floor to ceiling, creating significant safety hazards and impairing basic activities of daily living.
What should you not say to a hoarder?
Avoid making judgmental or dismissive statements about the hoarding behavior. Instead, focus on offering support and understanding. Refrain from insisting on immediate decluttering or making negative comments about the condition of their home, as this may cause distress or resistance. Encourage open communication and empathy while respecting their autonomy and emotions.