Buying A County Owned Home

So you found a home that is owned by Milwaukee County and are interested in acquiring the property. Here are a few things to consider and be prepared for:

First- The home is listed in the MLS making everyone aware it’s available. This property is no secret. In fact, the County is looking to get top dollar for this property.

Second- These properties often require lots of work and are not for the squeamish. I am sure that this is not a surprise to most people. The county gets these properties typically because the owner failed to pay the property taxes, often for several years. If the owner couldn’t come up with the money for taxes chances are they weren’t able to keep the property maintained either. So lots of differed maintenance can be expected. The question becomes how extensive is the work? Well, the last one I was in had plumbing that froze thus rendering the entire plumbing system defective. Because of the cost of copper, there have been occasions where the plumbing is stripped altogether from the home. Sometimes the defects are not visible making it more difficult to judge how much money and work you will need to put into the project.

Third- The property is sold in “As-Is” condition. Do all your checking before you write an offer. Once your offer is accepted, there will not be an opportunity to back out because of the property’s condition.

Forth- Make sure you have your financing in order. Chances are the County will sell it to a cash buyer. The property probably won’t qualify for traditional financing anyway. Having a line of credit or proof of funds will make your offer that much more attractive to the County. Knowing how you are going to pay for the property and the work that needs to be done before submitting an offer. This is very important to the success of getting the property.

Fifth- This will not happen over night. While it is important for you to be ready to move when the time comes, you are still subject to the slow grinding gears of our government. All offers are subject to the approval of the Milwaukee County Board of Supervisors and the County Executive. Thats right, this sale has to be approved by the County Board and the County Executive Scott Walker! That means that your offer will be an agenda item for a County Board Meeting. Once the Board approves the transaction it is on to the County Executive for a final signature of approval. Allow approximately 60 days for this to happen.

In summary, Make sure you do all your “Due Diligence” before writing an offer. Be sure your financing is in order. Submit your highest and best offer there will not be an opportunity to negotiate later. Finally, be patient as the whole process takes lots of time. Can a good deal be had? Is it worth the time and effort? Only you can answer these questions.