Almost 360,000 homes were damaged or destroyed by fire between 2011 and 2015 according to the National Fire Protection Association in the U.S. alone. This resulted in approximately $7 billion in damage and with the 2017 fires in California, those numbers have increased.
So, does this mean if you own a house that has been damaged by fire, you’ve lost money? No, it does not. Here at Mr Home Buyer, we have purchased fire-damaged houses and we have seen a profit turned on a fire damaged house. You simply need to be informed of your options so that you know what will get you the highest ROI.
Do You Repair It Then Sell It?
A fire damaged house isn’t going to sell as quick without being repaired, and you’ll certainly get more money out of it once you’ve cleaned it, aired it, and repaired it. This isn’t something that most home buyers do not want to deal with today. They want a home that is ready-to-move-in the day they close. Even a lot of real estate investors will steer away from all fire damaged homes. So, yes, the pool of potential buyers of a fire damaged home is a very small pool.
Yes, repairing a fire-damaged home and then trying to sell fire damaged house it is going to get it sold faster, but doing the work yourself could take longer than you may anticipate. Hiring a general contractor to do the job is the best way to get it done right and quick, but you’ll still be involved with the job when it comes to making decisions, not to mention the financial strain this can create.
You’re going to be a good amount of money before you can put it on the market, and then it may sit on the market for a while – are you financially prepared for that? Things such as cleanup and painting fire damage are relatively the least expensive. It is the structural repairs that can cost and are most time-consuming.
A Discounted Price
If you get an interested buyer for your fire-damaged home, they are going to expect it to be heavily discounted, which is understandable. Who wants to pay full price for a house that isn’t livable? Selling it damaged will keep you from having to put your own elbow grease to work repair it or put out more money to have it done by a contractor. But you have to ask yourself if you’ll get 100% of your ROI.
Or Sell As-Is The Way To Go?
Sometimes, sell fire damaged house as it sits is the best way to go, especially if the fire was contained in one area of the house, like the kitchen or a bedroom. And for some homeowners, it is their only option, like when there isn’t much equity in the house, then rehabbing and repairing it will create an expense and you still have the mortgage to be paid as well.
These are the times that having a good homeowner’s insurance policy pays off, especially if the payout is substantial. Between your insurance paying off and finding a somebody that pays cash for a house, you could come out ahead of the game.
real estate investor that offers a decent dollar for the house in as-is condition. Between the two, you could actually come out ‘whole’ as if you sell fire damaged house before the fire and received full market value.
Do You Disclose Fire-Damage When Selling?
Definitely! You should never try to hide something like fire damage. You can repair the damage, but full disclosure upon selling means just that, full disclosure. Keeping these things a secret can eventually haunt you later on.
Maintain all documents and receipts that pertained to repairing the fire damage, including police reports and insurance inspection and claim. No matter how good you have made the house look, a prospective buyer has the right to know what has taken place before.
Finding A Cash Buyer
Mr Home Buyer pays cash for houses all over Calgary, regardless of the condition. You won’t have any commission or fees to pay, we make it easy and fast to see your home privately, without a realtor. If you have a fire damaged house and want to get out from under that burden with any hassle, give us a call today at Mr Home Buyer.