Receiving a notice that your property has been condemned can be a deeply stressful and confusing experience. You're facing legal notices, potential demolition, and uncertainty about your investment. Your home, your most valuable asset, is now labeled as unsafe and uninhabitable, leaving you wondering about your options.

Yes, you can sell a condemned house in Texas. While it's challenging, solutions exist.

This guide will explain Texas' condemned property rules, your options, and how to navigate this situation. Whether you've just received a violation notice or your property has been fully condemned, understanding your path forward is the first step toward resolution.

What Does "Condemned" Mean in Texas?

A condemned property is one that a government authority (usually a city or county) has declared unfit for human habitation due to safety or health hazards. This is a formal legal status, not just a description of a poorly conditioned house. Condemnation due to code violations differs from eminent domain, which is when the government takes private property for public use (though a condemned property could eventually become subject to eminent domain proceedings).

A house can be condemned for various reasons tied to municipal building and health code violations. The most common reasons in Texas include:

• Severe Structural Damage: This includes foundation failure, collapsed roofs, fire or flood damage, or unsound walls. Any condition making the building unsafe to occupy falls into this category.
• Unsanitary Conditions: Properties can be condemned for health reasons if they have severe pest infestations (rodents, insects), hazardous waste, lack of running water or functional sewer systems, and dangerous mold growth.
• General Dilapidation and Abandonment: Properties that have been left vacant for long periods, fallen into disrepair, and pose a hazard to the community are frequently condemned, especially if they attract nuisances or criminal activity.
• Lack of Essential Utilities: The absence of safe electrical wiring, heating, or plumbing can render a property uninhabitable under Texas municipal codes.
• Zoning Violations or Illegal Construction: Unpermitted additions or modifications deemed unsafe by inspectors can trigger the condemnation process, especially if they create fire hazards or structural instability.

In Texas, local code enforcement officers make these determinations under the authority of the Texas Local Government Code, which empowers municipalities to regulate nuisances and dangerous structures.

The Condemnation Process in Texas: Step-by-Step

The Texas condemnation process follows a predictable path, although procedures can vary slightly between cities like Houston, Dallas, or San Antonio. Understanding this process helps you identify your position and next steps.

1. Complaint and Inspection. The process starts with a neighbor’s complaint or a routine inspection by a code enforcement officer. Emergency situations like fire damage trigger immediate action.
2. Notice of Violation. If code violations are found, you will receive a formal Notice of Violation. This document lists the specific code sections you are violating and provides a deadline (usually 30-90 days) to make repairs. This notice is your first warning that condemnation could be imminent if issues are not addressed.
3. Hearing. If the violations aren't fixed by the deadline, you'll be summoned to a hearing before a municipal board (often called a Building and Standards Commission). At this hearing, the city presents its case, and you can present your side and evidence to show why the property shouldn't be condemned.
4. The Condemnation Order. If the board sides with the city, they will issue a formal order requiring you to either repair the structure by a final deadline or demolish it. This is the official condemnation. The order typically includes a vacate notice requiring all occupants to leave the property immediately.
5. Appeal Process. Texas property owners can appeal the board's decision to a state district court, but must file within 20-30 days of the order. The process involves complex legal procedures requiring an attorney.

If no action is taken after the final order, the city can demolish the structure and place a lien on the property for the costs. This can lead to foreclosure if the lien isn't satisfied.

Your Three Paths After a Condemnation Notice

Once a property is condemned, you have three options. Before deciding, understand the pros and cons of each.

1. Repair and Remediate

This approach involves hiring contractors to fix every violation on the city's list to bring the house back up to code.

Pros:

• You keep your property.
• You may preserve or increase its value.
• You avoid the emotional loss of your home.

Cons:

• Can cost tens or hundreds of thousands of dollars, which can be prohibitively expensive.
• Must meet the city's strict deadline.
• Requires navigating permits, inspections, and roadblocks
• Repair costs often exceed the home’s value, making it financially impractical.

2. Appeal the Order

This involves fighting the condemnation through legal channels, challenging the findings or the process.

Pros:

• Slim chance to overturn the order
• Gives you more time to decide

Cons:

• Very expensive legal fees, typically a minimum of $5,000-$15,000.
• Uncertain outcome
• A lengthy process that adds stress and delays resolution
• You can’t use or occupy the property during appeals.

3. Sell the Property

Many property owners find that selling is the most practical solution to extract remaining equity and move on.

Pros:

• Allows you to recover property
• Avoids repair costs and legal battles.
• Provides a quick resolution to the problem
• Relieves you of ongoing stress and liability

Cons:

• You'll receive below-market value for a non-condemned equivalent.
• The key challenge is how to sell it. Traditional methods often fail with condemned properties.

Hurdles of Selling a Condemned House on the Traditional Market

Selling is a smart move, but listing a condemned house with a real estate agent is fundamentally different and challenging.

Challenge 1: Buyer Financing is Nearly Impossible

Traditional mortgage lenders (like banks, credit unions, and mortgage companies) won’t approve a loan for a legally uninhabitable property. FHA, VA, and conventional loans require basic safety and habitability standards, limiting your buyer pool to all-cash buyers, a tiny fraction of the normal population.

Challenge 2: Most Realtors Won't Take the Listing

Many real estate agents hesitate to list condemned properties due to the specialized knowledge required, a small buyer pool, and low commission relative to the work and liability involved. Even if you find an agent willing to take on your property, they may lack experience, limiting their effectiveness.

Challenge 3: The "As-Is" Reality & Lowball Offers

Even if you find a cash buyer on the open market, they’re typically flippers or investors who will make low offers to account for demolition, repair, and risk costs. While you’re selling your property as-is, the offers on the open market may not reflect a fair land value. The negotiation process can be grueling, with buyers citing defects to justify lowering their offer.

Challenge 4: Time is Not on Your Side

The traditional market moves slowly, even for perfect homes. You may wait months for a buyer for a condemned property. Meanwhile, the city's demolition deadline is looming. If the city demolishes your property, you'll lose the structure and be billed for the demolition costs, which can run $10,000-$30,000 depending on the size and location.

The Texas Seller's Disclosure Notice

Texas law requires full disclosure of property conditions, whether selling to a cash buyer or on the open market. This applies even with a condemned property.

The Texas Seller's Disclosure Notice is a standard form for most residential real estate transactions. It requires sellers to disclose known defects about the property, including structural issues, water damage, electrical problems, and, critically important in your case, any government orders affecting the property. The condemnation order and all known defects leading to it must be disclosed to potential buyers.

Professional cash buyers like GetHomeCash know this requirement and expect it. Our offer is made with full knowledge of the property's condition, so transparency makes the process smoother. Unlike traditional buyers who use disclosures to negotiate lower prices, our business model accounts for the property's condition.

FAQs

What is a condemned house worth in Texas?

The value of a condemned property is based on the land value minus demolition costs. The biggest factor; condemned houses in desirable neighborhoods or growing areas retain more value. A professional cash buyer will offer based on this calculation plus their assessment of the property's potential.

Can I live in a condemned house?

No. A condemnation order legally deems the property unfit for human habitation. Living in or allowing someone to live in a condemned house can result in significant fines ($500-$1,000 per day) and legal action from the municipality. Additionally, your insurance coverage is likely invalidated, creating serious liability issues.

Conclusion

A condemned house creates a serious, time-sensitive problem, but it's solvable with the right approach. Repairing the property or appealing the condemnation may seem ideal, but financial realities and tight timelines often make these options impractical for most homeowners.

In Texas, it is possible to sell a condemned house, and it is often the most strategic choice. A direct sale to a reputable cash buyer like GetHomeCash removes the stress, delays, and costs of a traditional sale, allowing you to quickly turn a liability into cash. By understanding your options, you can take control and choose the path that brings the fastest resolution and the most peace of mind.