House fires are a devastating experience. Not only do you lose some of your belongings, but your home could suffer fire damage worth thousands of dollars. Fire damage can make it very hard to sell the house.
As stated by the NFPA, people report around 350,000 house fires each year, causing roughly 5 to 6 billion dollars’ worth of damage. Gratefully, insurance covers part of that expense. Yet, even with insurance covers, homeowners have to bear the cost of repairing expensive damage. In such a situation, homeowners in Dearborn Michigan have two choices; they can either repair the house or sell it.
Steps to Take After A House Fire
1. Call Your Insurance Company
If your house in Dearborn Michigan has burned down, the first step to take is to call your insurance company who manages your property holder’s policy. Explain what happened, and the company will start the process of investigating the fire.
2. Liaise with Your Insurance Agent
Fire damage claims are given the urgency and processed quite fast. A claims adjustor is usually out to examine the house within a day or two. To ensure a quick and smooth process, be sure to avail yourself for meetings, return every phone call, and present your documents on time.
3. Find A Place to Stay If Your House Is Not Habitable
You need to plan to find a different place to stay if your house is not livable because of fire damage. Many insurance policies cover housing, food, and clothing that your family members may need, but only in a comparable manner. Do not expect to live in a 5-star bed and breakfast on your insurance company’s tab.
4. Request for A Renovation Company
Soon after a fire incident, you must begin clearing out any water damage or soot. Water damage, if not fixed right away within 24 hours, may start forming mold. Water damage can be an additional issue that you do not want to take care of. Ensure you contact a decent renovation company. You can ask your insurance company for a few references.
5. Isolate Damaged Things from Non-Damaged Ones
Your insurer will want to take a thorough inventory of the goods ruined in the fire. As soon as you have isolated damaged items from non-damaged ones, it will be easier to compile a comprehensive list. The list should include the model, date of purchase, serial number, cost, and a short description of the good.
6. Safely Store Away Non-Damaged Items
After a fire, your house will remain exposed to the elements, and this may leave items that were not affected by the fire vulnerable to damage. Be sure to move non-damaged goods to a secure location, such as a storage unit. Secure storage will protect them from further damage or theft.
Should You Fix A Home with Fire Damage?
The owner of a home destroyed by fire has to choose whether to fix it before selling it or to sell it as it is. There are upsides and downsides to making repairs.
Upsides to Restoring A House with Fire Damage
1. Some Repairs Can Be Inexpensive
If the house fire was minor and caused no damage to the structure, you may only need to make minor repairs. Such repairs can include carpet, paint, and minor changes that need attention. The good news is that you can do these repairs with little money.
2. You, Will, Reap Out A Higher Sales Value
If you choose to cater to the maintenance of your fire-damaged property, you may market the house for a higher price. Like we stated earlier, most buyers want to move into a ready house. If you pay for the repairs, your home will likely fetch a higher price than if you do not conduct the repairs.
3. The House Is Easier to Market
A prospective buyer will view a fire-damaged house as one that needs a lot of work. However, when you repair it before selling it, it will be off the market sooner. Many potential homeowners do not fancy getting contractors, paying for supplies, and supervising the repairs project.
Downsides to Fixing A House with Fire Damage
1. Repairs Are Time-Consuming
Like many Americans, you may not have the time it takes to employ contractors, hold meetings with them at your house, and wait for the repairs to conclude. Depending on the extent of fire damage, repairs could go on for months or even a year.
2. Managing the Repairs Is Quite A Headache
Handling a repair project is a very long and trying experience. Begin with getting professionals who will charge you a fair price for the repairs, get all the materials required for the job, and be prepared to handle unexpected issues that may arise in the process. Granted, you can hire a project manager, but that would be one more expense you have to deal with.
In the end, if you fix a house with fire damage, it will be for you to decide. The alternative to fixing your fire-damaged home is to market your property “as-is”
3. It Is Costly
The expense to fix a house relies on several things, like how intricate the fire was, whether the house had an irrigation system, and the process of putting out the blaze. The U.S. Fire Administration explains that if the house does not have a sprinkler or an irrigation system, the typical expense of a home fire is roughly $45,000. This can put owners in a grave financial dump if their insurance will not cover the damage.
Selling A Fire-Damaged House
There are two choices when selling a house with fire damage. First, you can list the home with a real estate agent or sell your house faster to a cash home-buying company, like REIOutpost LLC.
When selling the house through a realtor, you will possibly get a cash offer from a cash home-buying company nonetheless. A lot of buyers who purchase fire-damaged homes are investors. They will buy the home to repair it and sell it later.
Cash home-buying investors, or companies, can pay cash and close fast. They typically purchase your house in its current condition and close the sale of your fire-damaged home in a week or two.
Investors will usually pay a lesser amount than the typical buyer, and that is because the investors are taking up all the risk. When an investor acquires your house, they take responsibility for getting the permits, supervising the project, paying for the supplies and materials, and ensuring the property is fixed on time.
As well, the investor is hoping that the real estate market will not collapse and that he or she will generate profit.
To Wrap Up
Selling a fire-damaged home is difficult, but you can survive it. Stay organized and liaise with your insurance company. It can seem stressful, but hopefully, we have given you helps to make the undertaking much easier to manage.