Selling an Inherited House With Biohazards or Unsafe Conditions

You Don't Have to Enter an Unsafe House Just Because You Inherited It

This sounds obvious until you're the person standing outside the house.

Maybe you need paperwork.

Maybe there are family photographs inside.

Maybe you're looking for jewelry or important documents.

Maybe someone tells you:

“Just put on some gloves and a mask.”

That isn't necessarily a good idea.

Some property conditions require specialized training, protective equipment or professional remediation.

And some hazards may not be obvious.

If you have reason to believe the property contains serious biological, chemical, structural or other hazards, don't assume ordinary household cleaning precautions are sufficient.

The house can be evaluated without requiring you to personally become the clean-up crew.

What Is a Biohazard in an Inherited House?

The term can cover a wide range of conditions.

Depending upon the circumstances, concerns may involve:

• Human waste
• Animal feces or urine
• Deceased animals
• Blood or other bodily fluids
• Sewage contamination
• Used needles or sharps
• Severe pest or rodent contamination
• Decomposition-related contamination
• Certain drug-related contamination
• Other biological materials that may present health risks

Other unsafe conditions aren't necessarily biohazards but can still make a property dangerous to enter.

These might include:

• Fire damage
• Severe water damage
• Extensive mold
• Damaged or unstable flooring
• Structural instability
• Exposed electrical wiring
• Falling ceilings
• Blocked entrances or exits
• Unsafe stairs
• Collapsed portions of the structure
• Heavy accumulation of belongings that could shift or fall

The important distinction is this:

We're no longer talking about whether the house is ugly. We're talking about whether people can safely enter it.

Don't Be Embarrassed About the Condition

Families sometimes delay asking for help because they're embarrassed.

Maybe your parent was living in conditions nobody knew about.

Maybe you knew there was a problem but didn't realize how severe it had become.

Maybe you live out of state and haven't been inside the property in years.

Maybe neighbors knew.

Maybe the city became involved.

Maybe you're worried about what I'm going to think when I see it.

I've worked with complicated inherited and probate properties before.

My job isn't to judge the person who lived there.

My job is to help determine what can realistically be done with the real estate.

Tell me the truth about the condition.

If there is feces inside, tell me.

If there are deceased animals, tell me.

If you believe there are needles or hazardous materials, tell me.

If the floor feels unsafe, tell me.

That information isn't going to scare me away from having the conversation.

It helps us determine how to approach the property safely.

Do I Have to Clean Up the Biohazards Before Selling?

Maybe — but don't make that decision automatically.

Some conditions may need professional attention before people can safely enter, inspect or work inside the property.

In other circumstances, a specialized buyer may be willing to purchase a distressed property with substantial remediation still required.

The appropriate approach depends on:

What the hazard is.

How extensive it is.

Whether safe access is possible.

What local authorities may require.

What type of buyer we're likely to attract.

How remediation would affect marketability and value.

What the remediation would cost.

That's why I wouldn't immediately spend $20,000 cleaning a property without understanding what that expenditure is likely to accomplish.

First, let's evaluate the real estate situation.

Then we can determine which work is necessary for safety, which work may improve the sale, and which work may simply become an unnecessary expense.

This Isn't a Job for an Ordinary House Cleaner

Some inherited properties need cleaning.

Others need remediation.

Those aren't necessarily the same thing.

An ordinary cleaning service may be perfectly appropriate for a dirty but otherwise safe house.

Serious biological contamination, sewage, hazardous materials or other dangerous conditions may require properly trained and equipped professionals.

The same applies to certain structural, electrical, fire or environmental hazards.

If specialized work is needed, the appropriate qualified professional should determine how it should be performed.

Saving money isn't saving money if someone gets hurt.

Can I Sell an Unsafe Inherited House As-Is?

Potentially.

There are buyers who purchase properties requiring extensive rehabilitation.

Depending upon the property and circumstances, that might include:

• Experienced real estate investors
• Contractors
• Rehabilitation buyers
• Cash purchasers
• Other buyers experienced with distressed property

But the condition affects the buyer pool.

A house that can't be safely occupied — or perhaps safely entered — isn't going to appeal to the same buyer as a house that merely has an outdated kitchen.

Financing may also become more difficult depending upon the condition.

That doesn't mean the property has no value.

It means we need to market it to the appropriate buyer and price it with the condition and risk in mind.

As-Is Doesn't Mean We Hide the Problem

Selling a property as-is is not the same thing as pretending a problem doesn't exist.

Applicable California disclosure requirements and other obligations can depend upon the transaction, the seller and the circumstances.

Known material conditions may need to be disclosed as required.

If the property is unsafe to enter, we also need to think carefully about access.

We aren't going to invite unsuspecting buyers into a hazardous property and hope for the best.

The marketing and showing strategy has to reflect the actual condition of the house.

What If Buyers or Inspectors Can't Safely Enter?

Then we don't force the issue.

The inability to safely access portions of a property may affect:

• Inspections
• Appraisals
• Buyer due diligence
• Financing
• Photography
• Contractor estimates
• The buyer's willingness to proceed
• The price buyers are willing to pay

That uncertainty has value implications.

A buyer who can't determine what's underneath damaged flooring or behind inaccessible rooms may assume additional risk.

Sometimes limited remediation or clean-out can improve access enough to reduce that uncertainty.

Other times the cost doesn't make sense.

Again:

We evaluate before we spend.

What If the House Is Full of Belongings Too?

Unsafe conditions and hoarding sometimes overlap.

The house may contain decades of personal belongings mixed with debris, waste or contamination.

That creates a difficult situation because valuable or sentimental items may still be inside.

Family photographs.

Documents.

Jewelry.

Collectibles.

Estate records.

Items intended for particular beneficiaries.

The appropriate estate representative should determine what personal property needs to be preserved or distributed.

But if accessing those items would expose someone to unsafe conditions, don't risk your health to retrieve them without considering whether professional assistance is appropriate.

There may be safer ways to approach the problem.

What If the City Has Red-Tagged or Yellow-Tagged the Property?

If a local government agency has restricted occupancy or access, issued code violations or placed other requirements on the property, we need to understand exactly what has been ordered.

Don't assume the terminology means the same thing in every city or circumstance.

Get copies of the notices if possible.

We need to know:

Is occupancy prohibited?

Is access restricted?

Are corrections required?

Are there outstanding code violations?

Are there deadlines or other requirements?

Those issues may affect how the property can be marketed, accessed and transferred.

Depending upon the situation, the estate may need information from the appropriate city department, attorney, contractor or other qualified professional.

What If the Unsafe Condition Was Caused by Hoarding?

Then we have two related problems:

The contents and the condition of the property underneath them.

A severe hoarding situation can hide significant property damage.

Leaks may have gone unnoticed.

Plumbing may be inaccessible.

Pests may have caused damage.

Flooring may be contaminated.

Moisture may have been trapped.

Electrical outlets may be blocked.

Rooms may not have been accessible for years.

That's why completely cleaning a hoarder house doesn't necessarily transform it into a market-ready property.

Once the contents are removed, you may discover an entirely new repair list.

Before undertaking a massive clean-out, let's consider what happens after the house is empty.

What If There Was a Death in the Property?

The circumstances matter.

A death in a home doesn't automatically mean the property requires specialized remediation.

But certain situations involving bodily fluids, decomposition or biological contamination can create hazards requiring professional attention.

There can also be California disclosure considerations associated with deaths on a property, depending upon the circumstances and timing.

If you're unsure what needs to be disclosed or remediated, don't guess.

We can identify which professionals need to answer those questions.

What If There's Severe Mold?

Mold is another area where I don't want heirs guessing.

A little visible discoloration around an old leak is very different from extensive moisture damage throughout a property.

If there's significant suspected mold or water intrusion, qualified professionals may be needed to evaluate the condition and determine an appropriate response.

You don't necessarily need to turn the property into a completely remediated, remodeled house before selling it.

But we need to understand what we're dealing with and communicate appropriately with potential buyers.

What If the House Was Damaged by Fire?

Fire-damaged inherited properties present another set of considerations.

There may be:

Structural damage.

Smoke damage.

Water damage from firefighting.

Electrical issues.

Building restrictions.

Insurance matters.

Open permits or governmental requirements.

Again, don't assume the estate must completely rebuild the house before selling it.

Depending upon the property, land value and condition of the remaining structure, there may be buyers willing to purchase it as-is.

We need to determine what remains, what is safe and what the property is realistically worth.

What If I Live Out of State?

Then the last thing I want is for you to fly to California, walk into a potentially unsafe property and start filling garbage bags.

You may be able to handle much of the real estate process remotely.

We can begin by discussing:

Where the property is.

What you know about its condition.

Whether anyone has safe access.

Whether governmental agencies have been involved.

What photographs, notices or other information are available.

Who has authority over the property.

Then we determine the next step.

You don't need to personally stand inside the house for us to begin solving the real estate problem.

What If the Estate Doesn't Have Money for Remediation?

That's an important consideration.

Professional remediation can be expensive.

And heirs may not want — or be able — to personally advance substantial money.

That doesn't automatically mean the property can't be sold.

It means we need to understand what the property might bring in its present condition and compare that with what remediation might accomplish.

Sometimes spending money produces a meaningful return.

Sometimes it improves access and dramatically expands the buyer pool.

Sometimes it doesn't make financial sense.

The numbers should help drive the decision.

What If There Is Little or No Equity?

Before spending significant estate money on remediation or repairs, we should also understand what is owed against the property.

There could be:

A mortgage.

A second loan.

A partial claim.

Tax liens.

Judgments.

HOA obligations.

Other recorded liens.

If the property has substantial equity, one strategy may make sense.

If there is little or no equity, spending tens of thousands of dollars preparing it for sale may be a very different decision.

And if the property is worth less than the obligations against it, we may need to investigate other options, potentially including a short sale depending upon the circumstances.

You Don't Have to Fix an Unsafe Property Before You Call Me

This is the part I want you to remember.

The unsafe condition is why you're calling.

You don't need to solve it first.

Don't apologize.

Don't tell me you'll call in three months after you've cleaned everything.

And please don't put yourself in a potentially hazardous situation because you think a real estate broker won't look at the property until you've made it presentable.

Tell me exactly what you're dealing with.

Maybe we need a specialized professional involved before anyone enters.

Maybe we need information from the city.

Maybe some remediation makes sense.

Maybe the property can be marketed to an appropriate buyer substantially as-is.

First we identify the problem. Then we determine the safest and most financially sensible way forward.

Need to Sell an Inherited California Property With Unsafe Conditions?

You may be looking at a property that feels impossible to sell.

It isn't necessarily impossible.

It may simply require a different approach.

We'll start by determining:

Is the property safe to enter?

What hazards are known or suspected?

Does a professional need to evaluate or remediate anything?

Are there governmental restrictions or violations?

What is the property worth in its current condition?

What would remediation accomplish?

Who is the likely buyer?

Can the property reasonably be sold as-is?

I've been a California real estate broker for more than 26 years and work with probate, inherited and complicated property sales throughout Southern California.

You don't need to make an unsafe property look like a normal house before asking for help.

Tell me what you're dealing with. We'll figure out where to start.

Properties involving biological contamination, mold, hazardous materials, structural damage, fire damage, code enforcement or other unsafe conditions may require evaluation or work by appropriately qualified professionals. Applicable disclosure, probate, estate, environmental, governmental and property requirements vary according to the circumstances. This page provides general real estate information and is not legal, environmental, remediation, health, tax or financial advice.

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