Selling a house damaged by fire in Ohio may seem intimidating. However, with the right guidance the process can be smooth. This article aims to give you the insights you need to create an action plan to sell your burned home.
What Should You Do After a House Fire
After you’ve received permission to enter the home from the local fire department, you’ll want to protect the property from weather exposure and potential vandalism. This may require tarping the roof and/or boarding up windows.
Once the property is secure, you should immediately contact your insurance provider to begin the claims process. They can help you understand your coverage, provide assistance with temporary housing, and arrange for an adjuster to inspect the home.
If the fire was caused by a wildfire, you may be eligible for assistance through FEMA, depending on your location .
Once the insurance payout is received, you can use those funds for fire damage restoration if you choose to rebuild. Make sure you hire a licensed and experienced fire restoration contractor.
Repair the Fire Damage or Sell the Burned House As-Is?
Homeowners have two choices when it comes to selling their fire damaged house: repair the damage (unless you want to source and manage your own subcontractors, the easiest way is to go through a restoration company), or sell the house as-is to a cash buyer and move on quickly. The right choice depends on several key factors:
Extent of the Fire Damage
The severity of the fire is the first major factor. Minor smoke damage and cosmetic issues might be worth fixing, especially if your insurance covers the bulk of the repair costs. But if the fire damaged large portions of the house including weight supporting beams or walls, or the roof, repairs in Ohio can quickly balloon to well over a hundred thousand dollars. Ironically, the process of putting out the fire can cause more harm. Water used during fire fighting efforts may soak into the structure, encouraging mold growth or creating new structural concerns. Structural repairs require permits and require more time and oversight.
Do You Have the Cash to Repair the Fire Damage?
Many homeowners will use their insurance payout to buy a new property. So if you don’t have the savings or credit to float the repair costs, restoring the home may not be realistic. Fire restoration companies often require upfront payments or progress payments as work is completed.
Are You Emotionally Ready to Rebuild?
For many, a fire damaged house is more than a project, it’s a reminder of trauma. Walking through the space where the fire occurred can be overwhelming. If the emotional weight of the situation is too heavy, it may be best to sell the property as-is and focus on moving on.
How Much Will You Net?
Reparing and listing a fire damaged house means you’ll sell for top dollar, but that doesn’t always equal a bigger payday. Once you deduct:
- Repair costs
- Holding costs (mortgage, utilities, property taxes)
- Realtor commissions (typically 5-6%)
- Closing costs
Your net profit may be lower or not much higher than if you sold your home as-is to a company that buys houses for cash. Investors have access to discounted contractor pricing and can complete renovations for significantly cheaper than a homeowner would pay. Investors also get discounts on realtor commissions and closing cost due to repeat business. Once you weigh the difference in your net from the two options against the headache of managing a fire damage renovation, you may find your best option is to sell to an investor as-is for cash.
Legal Obligations When Selling a Fire Damaged House in Ohio
Regardless of which route you take, Ohio law requires sellers to disclose known defects, including any fire related damage. As the seller, you’ll need to be honest about how bad the fire damage was and what repairs have been made. This includes giving details about what caused the fire and any insurance claims.
Final Thoughts: Selling a Fire Damaged House in Ohio
If the damage is minimal and your finances and emotions are stable, restoring your home and selling on the open market could be worth the effort. But if the fire caused major damage, the cost to repair is too high, or you simply want an easy way out, selling your burned house as-is to an investor may be your best option.
At Snap Sell Homebuyers, we buy houses with fire damage in cities across Ohio, including Akron, Canton, Cleveland, Parma, Massillon, Medina, and more!
Fire Damaged House Sale Frequently Asked Questions
How Much Insurance Money Do You Get if Your House Burns Down?
This is going to depend on what type of coverage policy you have. With replacement cost coverage, your insurer will pay to rebuild your home at today’s construction cost, up to your policy limit. With actual cash value coverage, reimbursement is reduced for depreciation.
What Happens if You Don’t Use Insurance Money for Repairs?
You don’t have to use the insurance money to repair your fire damaged house. In fact, many poeple choose to use the insurance money to purchase a new home and sell their fire damaged house as-is to a cash investor.
How to Price a Fire Damaged House?
If you choose to fix up your fire damaged house, you’ll want to consult an experienced real estate agent about pricing. If you choose to sell as-is, you should get a few offers from investors who buy fire damaged houses.
Does a House Lose Value After a Fire?
If you choose to sell a fire damaged home as-is it will certainly have less value than before the fire. But if you completely repair the fire damage then the answer is it depends. Ohio law requires that you disclose the fire damage. Some buyers will care and some won’t as long as the repairs are done with quality. Market conditions and how desirable the neighborhood your property is in can dictate how picky buyers can afford to be.