Important terms to know:
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Occupied A residential property where a person (e.g., former owner, or tenant) lives or maintains actual possession. |
The idea of buying an occupied property might be a little daunting, but don’t let that scare you away. You can often purchase an occupied home for significantly less than the market value and, with a little work, you can earn a nice return on your investment.
What to know about occupied properties
As with all auction properties, we highly recommend conducting your due diligence before deciding to bid on or submit a pre-auction offer on an occupied property. We also encourage you to develop a strategy for compliantly vacating the occupants from the property if you aren’t planning to make it a rental.
Here are a couple of things to consider as you think about your approach to working with an occupied home:
Rental
If you want to rent the occupied property to the tenants that currently live there, then the process is pretty simple. At the appropriate time, you just need to have them sign a new lease. If you’re a new buyer, it may be helpful to hire a real estate agent to assist with the leasing materials.
Primary Residence
If you want to live on the property, you will need to ask the tenants to vacate. This can sometimes be as easy as asking them or providing them with an incentive to leave. You also may need to go through an eviction process. If this is the case, we highly recommend hiring an experienced attorney to guide you through this process.
| Pro tip: Once you have the property deed in hand, a daytime visit to meet the occupants is a great first step in the possession transfer process. |
With the right knowledge and preparation, buying an occupied property can be an effective way to invest in real estate and build wealth for your future.
If you’re a first-time buyer, you may want to consider getting your feet wet with non-occupied properties first. Once you have a little more know-how, you’ll be a seasoned investor and can explore the opportunity of occupied property purchases.
Quick info on occupied properties
| Financing or cash-only: | Both, but many sellers may require cash only |
| Inspection or sight unseen: | Sight unseen |
| Property types: | Residential (single family, multi family, modular, mobile), commercial |