There is nothing more terrifying than the thought of losing your house to a fire and putting your family and livelihood at risk.
Unfortunately, this cruel reality does take place at times, and it’s important to understand certain details.
It can be devastating, but you need to ensure that you are well-informed in order to know what to do in case this ever happens to you.
The fact of the matter is that many houses are damaged by fires every year, which often results in the loss of valuable property.
However, it will not be a total loss when your home is destroyed by fire since you can sell it to property developers who will renovate it.
There are different things to consider when you want to sell your house after being damaged by fire. Read on to learn how to determine the value of a fire-damaged house.
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Contact Your Insurance Agent
The first thing to do is contact your insurance agent when your home is damaged by fire. Your insurer will assess the damage caused by the fire and advise you about the next steps you can take.
You should explain to your insurance agent everything that had transpired to the best of your knowledge. The insurance company’s adjuster can also evaluate the total cost of damage to the property caused by the fire.
To determine the value of a fire damaged house, this article https://askanadjuster.com/have-you-ever-filed-a-fire-damage-claim/ will also help you and contact their public adjusting experts to discuss more.
Find Property Buyers
Several buyers are ready to buy damaged properties, and it would be best to deal with them if you want to sell your house.
Fire damage experts at webuyfiredamagedhouses.com explain that you can get a fair settlement for your property even when it is damaged.
Of course, before any sales can be made, you must enlist the services of an expert to assess the level of damage caused by the fire.
When you sell your damaged home, you can move on with your life much more comfortable than when you opt for massive repairs that some houses need after a fire.
Assess the Damaged Systems
The heating and cooling systems are often destroyed completely when the house is gutted by fire.
The same applies to the entire house’s electric system, which may be the major cause of the fire. Therefore, if the system is badly damaged, it needs replacement, which is usually costly.
The water system is also crucial in any home, and it may also be badly damaged by the fire.
In some instances, the fire can weaken the structure to the extent that it will have to be pulled down.
Given such a scenario, you must consider all the costs involved in erecting a new structure as well as installing new systems; this means that the asking price for the property will be lower to get buyers.
If the house consists of durable roofing material, such as concrete tiles and steel, it can survive the severe impacts of fire, which means that its value may not be that bad.
Cost of repairs
It is essential to determine the total cost to fix the fire-damaged house. Whether you want to sell the home as-is, you must understand that the buyer will still need to fix it.
Therefore, when you have an idea of the property’s restoration costs, you can charge a reasonable price. When the damage is not extensive, then the house will fetch a better price.
The restoration cost of homes that have been damaged by fires varies depending on the extent of the destruction.
Location
Factors, such as location, mainly determine the value of houses. If your home is located in an affluent suburb, it is likely to fetch a high price regardless of the damage caused by the fire.
Consider the price of other houses in the area so you can work out a reasonable price for your damaged property.
You can enlist an estate agent’s services to do a comparative market analysis for a better price.
You can also move around the area to get an idea of the asking price for different homes so that you can make an informed decision.
When you have the average price for other homes in your location, you can charge about 10% of that value.
Be sure to get recent prices, within three months, for homes so that you can get an average value that will not deter potential buyers.
When selling fire damaged property, it is important to talk to your real estate so that your house will not take too long to sell.
A price that is too high will scare away buyers, while a lower price can result in too little money.
You must do your homework all the same since real estate agents are primarily concerned about the commission they get after selling the home.
Know That Your Home Is Damaged
You should never forget that you are selling a home that is damaged by fire. Therefore, your asking price must take into account all the damages.
Some buyers will not even consider buying a property that has been damaged by fire. Set a lower price so that you can draw the attention of many people.
You also need to be prepared to accept a lower price so that the selling process will not take long.
Choosing the right price for a house damaged by fire can be challenging due to many factors.
There is a danger that you can overprice or underprice your property. Therefore, find a reasonable price so that you will not experience complete loss.
Choose a price that prospective buyers of the property need not negotiate for a reduction. The value of the home should appeal to different people.
Several houses are damaged by fire every year, leading to the destruction of valuable property.
However, it is possible to restore a house burnt by fire or sell it to companies that specialize in buying such properties.
There are different factors to consider in determining the value of a home that has been destroyed by fire. If the structure is still intact, it means that your house can fetch a better asking price.