Personally and financially, a house fire is a devastating thing, and comes out of nowhere. For anyone in need of needing to sell their property after such an event the process can feel agonizing. Yet, no matter what, you can indeed sell a home after a fire, as long as you have the right strategy.
1. Assess the Damage
The main message here is, if you put your home up for sale without assessing the full extent of fire damage and the resulting repairs, you can really be in trouble. You can hire a professional to inspect the property and tell you what repairs are needed and how those repairs will affect your selling price.
Key Areas of Assessment:
- Structural Damage: Figure out if it has busted the structural integrity of the house.
- Smoke and Soot Damage: Smoke residue doesn’t only stay in surfaces, it can also contaminate the air quality.
- Water Damage: Water used to put out a fire may actually expose the area to additional damage, such as in walls and flooring.
A complete examination will give you a good sense of what needs to be fixed and if perhaps you should even sell ‘as is’.
2. Understand Insurance Claims
Why you sell the property is important too, and fire insurance can have a lot to do with this. If you haven’t first made a claim, then it’s time to contact your insurance company. First you need to review your policy and check what damages are covered and how much you may be compensated. And insurance payouts can help fund repairs that will allow you to sell the property for a better price.
If the homeowners decide they will sell the property first and allow buyers to carry out the renovations, others opt to sell the property themselves. But that’s all a matter of how much damage you’re dealing with and how healthy your local real estate market is.
3. Selling As-Is or Renovating is the next decision
When selling a home after a fire, you have two primary options: or trying to sell the home as is. There are pros and cons with each option and the choice to make depends on your circumstances.
Selling As-Is
Pros:
- Faster Sale: Skip lengthy renovations and quickly get the home on the market.
- Attract Investors: Some buyers, namely, real estate investors, are looking for fixer upstairs properties in which they can renovate and flipping them.
- Less Financial Stress: You won’t have to pay out of pocket for repairs if you sell your old furniture as is.
Cons:
- Lower Selling Price: If needed, a lot of work is received, a home sold as is will usually get lower prices.
- Limited Buyer Pool: More traditional homebuyers may be uncomfortable in buying a property that has too much fire damage.
Renovating Before Selling
Pros:
- Higher Selling Price: New homes can excite a wider base of audience and attract higher offers.
- More Appealing to Buyers: If you are moving into an older home, new buyers might be more comfortable with buying a home that already has been done.
Cons:
- Costly Repairs: Renovations could be quite expensive depending on the damage.
- Time-Consuming: The sale could have to be delayed for weeks or even months as repairs.
4. Set a Realistic Price
Pricing a fire damaged home can get tough. Use a real estate agent who has successfully sold distressed properties. They can assist you in pricing the home based on what it is worth, where it is located, and current market trends. If selling as-is, you will likely have to price the property low enough to entice buyers who’ll complete the needed repairs.
5. Be Transparent with Buyers
When selling a home after a fire, honesty is key. Any fire related damage, repairs or insurance claims, are something that buyers have a right to know about. Show all required paperwork that has already had repairs completed such as permits or reports on inscriptions.
Transparency builds trust with potential buyers and you are more likely to have a smooth transaction.
6. Market to the Right Buyers
When you’re marketing a fire damaged home it is done differently to a normal property. You can usually get away with what you want, but if you are not targeting your audience correctly, these ads could lose you the sale. Here are a few buyer types to consider:
- Investors: Many want distressed properties to renovate, and then resell for a profit.
- Contractors: Contractors or builders who do not repair damaged homes will take on the project.
- First-Time Buyers: Your home could be an affordable option for first time buyers wanting to put in a little work with the right repairs.
For attracting buyers highlight the positive things about the property like location, lot size or how different the architectural features are.
7. You should be Prepared for Inspections and Appraisals
If you disclose all the fire damage, buyers will want their own inspections anyway. We will be prepared for the chance that, during this process, other problems may arise. However, it is the same if appraisals come in lower than expected just because the home is not in good condition.
But if you’ve done renovations, document them (and list them on the Amor document for your taxes) so that you can support the home’s value.
8. Selling to a Cash Buyer and Say No to a Trade
In certain situations selling to a cash buyer or real estate investment company is the simplest route. But some cash buyers will buy distressed properties quickly — and that can even work to your advantage if you’re in a hurry to move on. Note, however, that cash money offers may be less than traditional offers if the buyer intends to update the house.
Final Thoughts
Selling a home after a fire is hard, but not impossible. If you decide to sell as is, or even spend money on repairs, you can learn about all your options and work with the right pros to get a successful sale. Through the process keep being patient, transparent, and realistic. After such a hard time, a good strategy can help you to just move on.
Guided by these steps and understanding what’s in selling a home post fire, homeowners can make informed decisions and take the best steps forward that can be very stressful times. Visit Gold Homes LLC for more blogs, expert insights, and guidance.