How To Sell Your Fire Damaged Home

How To Sell Your Fire Damaged Home

The most hazardous problem is selling your home after it has completely burnt down. As your property was on fire, the price of the property is going down. And sometimes, buyers hesitate to purchase a house that was burnt down.

You may have to accept the lower charges if you are selling your home “as it is” or you have to spend a lot of money on restoring your house. Both options have advantages and disadvantages. But the main specification is that you have to bear losses.

In this article, we will discuss two main options to sell your fire-damaged home, their pros, cons, and everything you need to know. So let’s discuss the methods of selling fire-damaged homes.

2 Methods For Selling A Fire Damaged Houses/Properties

After a fire has burnt down your home and all your memories, you have different choices related to your fire-damaged house. Whether you can repair it, restore it and make it lively again and use it for your accommodation. But if you don’t want to use your home for yourself and want to sell it, then you have two primary options.

The first is to restore your property to market condition and then present it for selling.

The second method is to sell your house as it is without any repairs or restoration.

Both methods have their consequences. Let’s discuss the first method.

Method – 1:
Selling The House After Restoration:

The first method is to sell your house after fixing it. For this method, you have to do a proper procedure. From calling your insurance company to restoration contractor and then connecting to local real estate agents. In this method, first, you restore the house from fire damage and then you traditionally sell it.

In this method, you have to do step by step process. As mentioned follow:

Call Your Insurance Company:

The first step of this process is to. call your insurance company. The company will first inspect your house and then they may send you a claim adjuster and advise you what you have to do immediately. You must have to know your policy is the Actual Cash Value or Replacement Value. So that you can proceed accordingly.

Inspection:

You will have to hire a qualified inspector for the inspection of your house. As you need permission from the fire department to re-entering your house. As per the damages, it might not be safe to enter the house without proper inspection. You would need to pass several kinds of inspections.

Restoration Contractor:

You need to contact a restoration contractor who is more familiar with restoring damaged houses. It is advisable to choose a restoration contractor with a GC ( General Contractor ) license. So that you will get all the work done which is needed. Your contractor can also help you in dealing with your insurance company.

Listing:

After completing all the above steps, the last but not the least step is to connect with local realtors to list and sell your house. So that they can provide you with a list of potential buyers. And you can sell your house at a fair price.

How Much Does It Cost?

The cost of restoring a fire-damaged house will vary from the type and damage done. Some houses sustain more water damages or some have more smoke damage. According to information collected by the Trade Association, restoration costs typically range from $5,000 to $35,000.

Mechanical, electronic, or plumbing inspection can additionally cost from $300 to $500. You should have to get a particularised quotation which clearly shows all the works to be done including the cost of damage, labor costs, debris, demolition costs, and material costs. So that you can get a clear picture of all the expenses.

Fire damage restoration can take up to 6 months. So if you have time and funds, then this method is ideal for you.

Method:2
Sell The House As It Is:

The second method to sell the house with fire damages is to sell the property or house in the same condition caused by fire or sell the house “as it is”.

You probably have a question: will anyone want to purchase a fire-damaged house? This method is completely new and it is quite in fashion across the US. The person who is willing to purchase fire damage or any kind of damaged property is a real estate agent. They have experience purchasing this kind of property and after repairing and restoring the property they resell it.

Other than realtors, investors are also potential buyers to purchase this kind of property. They can purchase your fire-damaged house in cash and then repair it on their investment property.

Their goal after purchasing damaged properties is to get a property less than the market price and after investing in reconstruction, they can sell this kind of property at a good price and gain profit. Or they can give this property in rent to the tenant and earn money easily.

To sell your damaged house or property, you must find out this kind of real estate agent or investor. You can also contact different investing agencies. After fixing the appointment, you can negotiate with them on terms of purchase and sell your fire-damaged house right away.

If you don’t have time, money and you are not willing to pass through the frustrating restoration process, selling your house “as it is” is the best method for you.

Advantages of Selling Your Home “As It Is”

You don’t have to go through the time-consuming and expensive restoring process.
Generally, investors pay in cash so that you will get a certain closing.
You can sell your house as it is without repairing or cleaning to the investors.
They are professionals so that they will do their work promptly and without any inspections.
It will save you a lot on closing costs.

Disadvantages of Selling Your Home “As It Is”

You have to be aware of scammers and check their licenses. Otherwise, they can trap you in fraud.
Investors offer a lower value than the market value.
They can demand a high commission.

Which Method Will You Choose?

After your home is burnt down, it is quite a difficult time for the homeowner. As he has to decide what he is going to do with this damaged property?

Decisions on how to sell fire-damaged homes can be relied on in several circumstances. Everyone’s situation is not the same. You have to think about different factors like the needs of your family, your health, your job, and your financial conditions.

If you have any other accommodation for temporary staying and enough funds for restoring cost, then the first method is perfect for you. So that you can rebuild your home and get the fair market value after selling.

But if you don’t have time, funds or you have to quickly get rid of this home, then the second method of selling it to an investor without any repairs is the best choice for you. You might get a lower price but you will get peace of mind and save yourself from the time-consuming process.