How to Search for Homes to Rehabilitate

Once your affiliate has determined it would like to pursue home rehabilitation, the selection process begins. Some affiliates are blessed with donors offering homes for free or at a discounted cost. Other affiliates will need to search for homes to rehabilitate. Either way, creating strict selection criteria and being highly selective of homes that fall within that criteria is the best way to assure a successful outcome. Often, this may mean walking away from homes that seem like a “good deal” on face value.


Home selection criteria might include:

  • Impact 
    • Will rehabilitating the home help your affiliate achieve its goals in the service area?
  • Size 
    • Is the amount of living space appropriate for the family?
    • Will utility costs be affordable to the family?
       
  • Soft Costs
    • Account for the soft costs ie. searching for liens, inspection expenses, yard maintenance, etc.
  • Damage
    • Has the home been vandalized?
    • Has there been water damage?
    • Is there evidence of charring from fires?
  • Lead & Asbestos
    • Is your affiliate prepared to deal with hazardous materials?
       
  • Home Performance
    • Can the home achieve ENERGY STAR certification?
  • Community Amenities
    • How close is the home to schools, transit, employment and businesses?

Once your affiliate has a clear goal in mind for what type of home they are looking for, it is time to start the search.

Sources to search for homes to be rehabilitated:

  1. BidSelect.com – BidSelect offers listings of thousands of homes with detailed property listings for free.
  2. HomePath.com – HomePath is a site run by Fannie Mae listing properties they own.
  3. HUD REO Bulk Sales – The Department of Housing and Urban Development will sell foreclosed properties are an extremely discounted rate. Linked is a document that lists criteria and where to research these properties.
  4. HUD Homes for Sale – For list of numerous federal agencies with homes available for sale click on the title of this resource for a link.
  5. RealtyTrac.com – Provides an extensive analysis of real estate in your area and properties available. Layers of information are opened up for a fee.

Local realtors and land banks can also be good resources for information and homes available for rehabilitation.