When you think of selling a house, fire damage does not come to mind. But sometimes that may be the case. And if you are someone who is in this situation, this might be of help.
Extent of the Damage
Assessing the damage caused by the fire is the foremost step in selling a fire-damaged house. Fire leads to visible and hidden damage, so you must know the extent.
- Structural Strength – Fires can wreak havoc on the structural integrity of a house, including the foundation, roof, and walls.
- Damage from Smoke – Smoke and soot from the fire can spread throughout the house leading to bad odor, discoloration, and potential health hazards.
Repairs or Sell As-Is
After the initial assessment, the next step needs decision-making.
- Repairs – Repairing the house before selling it would bring in slightly more money.
- Sell As-Is – Selling the house as-is will save time and money. However, you may have to accept a lower sale price. This option generally appeals to those looking for a fixer-upper.
Permits and Documentation
Whether you choose to repair or sell the house as-is, it is imperative to have the necessary documentation. This includes:
- A report from the fire department.
- Information regarding any insurance claims.
- Estimates regarding the repairs.
Set the Price
A fire-damaged house may not fetch the full asking price or even an amount close to it. But you play the cards you are dealt.
- Hire a Real Estate Agent – Working with a real estate agent who is experienced in these kinds of sales might be useful. They can help set a realistic price for your house and offer insight into the market.
- Market Comparison – Although this might be slightly difficult in the case of a fire-damaged house, you may want to look at nearby houses that were sold with repairs or as-is to get an estimate.
Market the House
Marketing a fire-damaged house requires a different than normal approach. Transparency will mean everything in this scenario.
- Highlight the Potential – Before you disclose the damage, highlight some salient features of the house to prospective buyers. Use creativity such as photography or target a particular niche such as house flippers or contractors.
- Disclose the Damage – Full disclosure is legally required. It’s that simple. Potential buyers should be made aware of any repairs or additional damage the house may have undergone.
That Is How You Do It
Once you have an offer, be prepared for negotiations. To be honest, you most likely will not have an upper hand in this sale. Be prepared to handle negotiations and meet the buyer in the middle. Once the offer is accepted, closing the deal is similar to any other real estate transaction.
Selling a fire-damaged house is tricky, but now you know how to change an uphill task into an opportunity. The strategy here is to approach the process with transparency, realistic expectations regarding time and money, and a creative marketing plan.
By understanding the aspect of selling a fire-damaged house and working alongside experienced professionals, you can successfully navigate the sale and move on toward greener pastures.