Selling a property in decent condition can be a complex matter in its own right, but putting it up for sale when it has damages like burns may seem impossible that it will ever be bought by anyone in the market. However, one should know that this is not necessarily the case granted the proper steps are taken in order to maximize the chances of gaining at least a few potential buyers.
Call the insurance company
Before doing anything else to sell burned property in NYC, the very first step one should take is getting in contact with their insurance company. Filling an agent/representative in on the specific details regarding the fire damage one’s home suffered as soon as possible is crucial and must be taken seriously. Afterward, the owner of the house or the agent will file a claim and focus on getting reimbursements for the loss. The sooner all of this is taken care of, the sooner one can put their attention toward fixing fire damage if required and coming up with strategies to put the home up for sale.
Do an inspection of the home
Having a certified inspector has its own perks, as they will be able to give one a better idea of what exactly was damaged in the fire and just how much it will cost to fix. Additionally, getting an inspection done of the house post-fire is highly suggested even though it may or may not be a requirement depending on the state in which one resides.
Get in contact with a restoration contractor
It is necessary to get in touch with a restoration expert if the interior of the property has suffered significant damage, which also means that several items will likely need to be replaced. In terms of pricing, it is worth mentioning that $9,800 is the approximate cost to repair fire damage. On the other hand, it costs an average of $8,800 to destroy a structure that has been damaged by fire.
Sell the home in its original condition
One option regarding selling burned property in NYC is to sell it the way it is without making any changes to it. This may be the best option if the cost to repair the damages is too expensive and there are too many issues to fix. Several individuals are willing to buy homes that are this way. Furthermore, if they agree to use their own money for repairs, one could receive more for their house because of the lower price point and also not have to take the responsibility of making the costly repairs on their end.
Offer seller financing
If one is planning to sell their house with help from a real estate agent or on their own, offering seller financing is an excellent tactic to get the attention of buyers that may not be qualified for traditional mortgages. No interest is involved when it comes to selling with seller financing, but one will get to collect payments monthly. This way as equity builds up in the house, one can eventually refinance and not have to pay any money out of their own pocket or pay off the previous mortgage.
Sell fire-damaged property for cash
Selling one’s home in exchange for cash is a suitable decision as long as they do not mind letting go of the equity that accumulated in the house. One will also be able to regain some money fast and not have to worry about repairs as mortgages or monthly payments are not associated with this kind of selling.
Sell fire-damaged home through a realtor
For this option to even be considered on a financial aspect, the house might have to be in a well-maintained condition due to the big percentage that buyers usually pay when buying homes. This amount is typically at least 6%, which means that a fee of $18,000 will have to be paid to the agent if the property costs $300k. This may mean more money for one to put the property up for sale the way it is and for cash.
Repair and sell fire-damaged house
If one chooses to repair their house first and then put it up for sale, they will need to make sure that the repairs are minor. Otherwise, a real estate agent will need to be hired so that they can showcase the property for sale on their own terms. It is also worth noting that people do not prefer purchasing houses with issues that need more money than they are willing to pay. If one decides to fix up their fire-damaged house by themselves, a number of things must be done. Firstly, all fire damage must be repaired. Second, smoke odors need to be removed or covered up through means of ozone treatment or a fogging machine. Next, the roof should be fixed if it is damaged. After that comes remediating mold if required and updating one’s disclosure forms. Following this is checking to see that there aren’t clear indications of moisture damage. And lastly, one should make sure that the house is clean on the interior and the exterior.
Demolish fire-damaged home, sell land
Getting one’s fire-damaged home destroyed gives them an additional option, which is to only sell the land. Selling to a real estate investor who wants to turn it into an empty lot is a good choice if one isn’t attached to the house sentimentally.