A zombie property refers to a vacant or abandoned property caught in legal or financial limbo, often during the foreclosure process. These properties occur when a homeowner vacates their property, believing it has been or will be foreclosed upon, but the foreclosure is delayed or incomplete, leaving the property in a state of neglect. Zombie properties can also arise from absentee ownership, probate delays, or other circumstances that cause a property to remain unused and unmanaged.

Zombie properties are a unique challenge in real estate and a significant opportunity for real estate agents, especially real estate auctioneers.

In the industry, a zombie property refers to a vacant or abandoned property that’s stuck in legal or financial limbo—often during foreclosure or probate. These properties frequently fall into disrepair and can become a burden to their owners or the communities they’re in. But they also present a tremendous opportunity for investors, agents, and auctioneers to create win-win solutions.

Now let me explain a bit more about how zombie properties fit into the auction world and why auctions are such an effective way to sell them.

Clearing Up the Auction Myth

First, let me address a common misconception about real estate auctions. Many agents think auctions are only for distressed or “junk” properties. This couldn’t be further from the truth. Auctions are a proven method for selling non-distressed properties, including luxury multi-million-dollar estates and high-value commercial properties.

Take, for example, the La Dune auction in the Hamptons. This iconic estate reportedly sold at auction for over $88 million with a buyer’s premium of 12% 🤯, showcasing the power of auctions in the luxury market. Auctions aren’t just a tool for distressed assets—they’re a powerful way to generate demand and competition for premium properties. Platforms like Ten-X and Crexi regularly feature non-distressed commercial properties as well, proving how versatile and effective auctions can be.

My Secret For Prospecting Zombie Properties

Now, on to zombie properties. As mentioned above, these are vacant properties, often tied up in foreclosure or left abandoned by their owners. Many cities and municipalities require investors or lenders to register vacant properties in a public Vacant Property Registry. These registries are designed to track and manage these properties to prevent them from becoming hazards to the community.

Here’s how we find and sell Zombie Properties: You can find Zombie properties using REDX Preforeclosures or PropStream using our affiliate links at RealEstateProspecting.com. You can also access the public registries by filing a Freedom of Information (FOIL) request, giving you a valuable list of potential prospects. Once we have identified the zombie property or obtained the list, we prospect the owners and position auctions as a quick, effective solution to sell these properties.

Auctions are particularly well-suited for zombie properties because they:

• Provide a competitive marketplace for quick sales.

• Eliminate the burden of carrying costs for the owners.

• Are sold as-is for cash only, with no inspection or financing contingencies, simplifying the process for sellers and attracting serious buyers.

• Help revitalize neighborhoods by moving vacant properties into the hands of new buyers.

Closing Thoughts

You can also earn a lot more, up to 20%, when selling these properties at auction. Now you know why auctioneers love prospecting zombie properties. If you have any other questions about auctions or zombie properties, feel free to ask! And thank you for your kind words—I’m thrilled to hear you’re enjoying my posts. I love sharing insights with this community.

About the Author

Giacomo Sinisgalli is a successful real estate broker with over 30 years of experience in the auction industry.

In addition to his successful real estate career, Sinisgalli is a state-approved real estate instructor and teaches brokers and agents how to sell real estate at auction.

Giacomo is a passionate public speaker and author, sharing his knowledge and experience with audiences worldwide through his online Real Estate Auctioneer School.

Don't miss out on this opportunity to learn from a seasoned professional and take your real estate career to the next level.

Enroll in his Real Estate Auction Masterclass at RealEstateAuctionMasterclass.com today and join a select group of agents who are making a fortune selling real estate at auction.

Giacomo Sinigalli, CREA
CEO, RealEstateAuction.com

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