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Need to sell a fire damaged home in California? Homeowners having a fire affected home face unique challenge, from the toll of a devastated property to the uncertainty and complexity of selling a house in such condition. But there is a famous saying, “From the ashes rises the phoenix.” In this blog, we’ll explore that phoenix which could turn your dilapidated situation into a position where you’ll gain financial liberty and peace of mind.
California is familiar with wildfires. In 2020, approximately 10,000 wildfires scorched more than 4 million acres of land throughout the state. The California Department of Forestry and Fire Protection (CAL FIRE) reported that 2021 experienced an increased level of fire activity, with more than 8,000 wildfires and over 2.5 million acres burned. Homeowners in areas prone to fires, like Northern and Southern California, can encounter the dilemma of selling a home with fire damage.
Damage due to fire also depends greatly on the intensity of the fire. It can vary from light damage from smoke to complete destruction of the property. In whatever measure, fire damaged homes should be given utmost attention when selling them. Let us have a more in-depth exploration of the concerns and possibilities confronting homeowners.
Fire damaged homes don’t just place a financial burden but also affect you emotionally. For many homeowners, the connection to their houses is so strong that the loss to fire can be devastating. In addition to the emotional strain fire damage usually brings, the financial losses. According to the Insurance Information Institute, California alone endures over $10 billion in wildfire damage each year. Homeowners might have to manage insurance claims before deciding how to sell.
Prior to selling a fire damaged property, one must determine the severity of the damage. The initial step involves hiring a professional inspector to survey the fire damage. In most cases, there are three stages of fire damage.
Minor Fire Damage
The damage from this could only be to a small section of the house, like soot marks or minor charring on the outside. In such a scenario, repairs might be minor, and it will be possible to sell the home without extensive overhauls.
Moderate Fire Damage
This involves smoke damage and potentially structural damage, including charred walls, floors, or a damaged roof. The property can still be repaired and sold at a discounted price at this point, but it might require extensive repairs.
Extreme Fire Damage
This encompasses widespread structural damage, including fallen walls, burnt beams, and complete destruction of the interior. A house with extreme fire damage might have to be rebuilt from scratch or sold as-is to investors who deal with fire damaged homes.
Homeowners have several options when it comes to selling a fire damaged home in California. Each has its advantages and disadvantages, depending on the severity of the damage and your circumstances.
One of the fastest solutions to sell a fire damaged home in California is a cash home buyer. They frequently buy houses as-is, without insisting on repairs or upgrades. This can be best for homeowners who want to sell fast and don’t have the resources or time to make repairs.
Most home buyers will offer a reasonable cash offer based on the property’s current state, considering the cost of repairs and renovations. The biggest benefit of taking this path is the convenience and speed. Cash sales close much quicker than traditional sales.
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If the homeowner has a more outstanding loan than the home is worth after being damaged by fire, he or she may have to accept a short sale or foreclosure. Short sale is a process in which the homeowner can sell the house for less than the mortgage balance with the lender’s consent. Short sales are lengthy and may require protracted negotiation with the lender.
If the homeowner is in default on the mortgage and does not go through a short sale, foreclosure is another possible consequence. The bank or lender in this situation takes possession of the property and sells it to recover the debt. Homeowners who are in foreclosure need to seek the advice of a real estate attorney to know their alternatives.
If you’re willing to spend money and time to restore your fire damaged home, a conventional sale is a possibility. Here, you’ll have to employ contractors to repair the property and make it habitable again before putting it up for sale. Although this method can enhance selling price, it involves considerable investment.
As per a study of the National Association of Realtors, homes that had been remodeled, were sold for an average of 20% more than homes that had not been repaired. The maintenance costs can be high, and the process may take months.
In other situations, homeowners will opt to sell their fire damaged home as-is to real estate investors. While this may be less cost-intensive in the short run, selling a house with fire damage without repairs will generally yield a lower sale price. It is also important to disclose the severity of fire damage to the buyers to avoid any legal issues. Complete transparency is mandated under California law in such circumstances.
Ready to sell your fire damaged home in California? You must consider the legal and insurance factors.
If the homeowner’s insurance covers you, the initial step after a fire is to make a claim. Your insurance company will evaluate the loss and give you compensation for paying for repairs or reconstruction. With a payment, you can utilize the money to repair the home or bear any financial loss in case you opt to sell the home.
California law requires sellers to disclose any known material defects or damage to a property. This includes fire damage, either visible or concealed. Failure to disclose fire damage can lead to legal action by the buyer. A professional home inspection and appraisal are necessary to provide complete transparency in the sale.
Selling a home that has been damaged by fire in California presents its own set of unique challenges. But with the right support and proper planning, it is possible to make it through the process. Regardless of whether you choose to sell as-is, do repairs or sell to a cash home buyer, you simply need to know your options and the value of the property. A cash home buyer is the quickest option for selling your house fast because they buy fire damaged homes as-is and make a cash offer within days with no hassle, helping you gain financial independence and peace of mind.
Ready to sell your fire damaged home in California? Contact Homeowner Relief to get the deal done in 24 hours.
Yes, California law requires you to disclose the damage prior to sale. If not disclosed could result in legal consequences.
It depends on the extent of the damage and your chosen selling method. Cash home buyers who don’t follow the traditional methods, can purchase the house in days.
If your house is insured, you can submit a claim and receive compensation for repairs or rebuilding.
If your house needs major repairs and you don’t have resources to bear the cost, you should approach a cash home buyer to sell your house as-is.
