Definition
Condemnation has two distinct meanings that homeowners run into in real estate. It's the formal legal proceeding used to carry out an eminent domain taking, and separately, it's also the term used when a city or county declares a building unsafe and unfit to be occupied. In that second sense, a condemned house typically can't be financed by a traditional lender, which means it often needs to be repaired to code or sold to a buyer who can pay cash and handle the rehab themselves. For a homeowner dealing with a condemned property, understanding which meaning applies changes what your realistic next steps look like.
Example
After a kitchen fire left Marcus's house structurally unsafe, the city posted a condemnation notice on the front door within days of the fire department's inspection. He got quotes for repairs and quickly realized bringing the home back up to code would cost more than he could afford out of pocket. No bank would approve a loan for a buyer on a condemned property, which narrowed his options considerably compared to a normal listing. He reached out to several cash buyers who were comfortable purchasing homes in as-is, post-fire condition. Marcus ultimately sold to a cash buyer who was prepared to handle the necessary repairs after closing, letting him move on without spending money he didn't have. Within a month of the fire, he had cash in hand and had already started looking at rentals.