If you are the owner of a fire-damaged house you may be concerned about what you are going to do next.
You may have heard that selling a fire-damaged house can be difficult. In fact, the truth is most buyers won’t even consider buying a fire-damaged house because of what happened there and the fears that come with that.
Fears that can include it happening again – maybe due to damaged electrical wires or something similar. Many buyers are also concerned about the soot and smoke damage that can remain in a home and cause serious health issues for those who live there and breathe it in day after day.
You may have also heard that fire-damaged houses spend more time on the market and sell for considerably less than similar homes that have not been damaged in a fire.
Unfortunately, All of This is True.
But that doesn’t mean there is nothing you can do to improve your chances of selling your fire-damaged house.
One thing you can do to increase your chances of selling is to look at “house flippers.” These professional investors make money by buying distressed real estate (like your fire-damaged house), fixing it up and then selling it for a profit. By looking at what they do you may be able to use some of their techniques to increase your own chances of selling for a great price.
Here are some house-flipping tips that you can use with your fire-damaged house:
1. Have Your Home Inspected by a Professional.
It is always best to know the full extent of the damage your home has sustained and what it is going to cost to fix that damage.
2. Study the Market.
One way to identify hot markets is to work with an experienced local real estate agent, one that knows the area like the back of their hand. If your house is in a hot market, your chances of repairing it and selling it for a profit will increase dramatically.
3. Set a Budget for Your Fire-Damaged House Repair and Stick to It.
Know what price range similar homes in the area are selling for and make sure you leave yourself room to profit after paying for the fix up.
4. Be Smart With Your Renovations.
That means stick to your budget and focus on renovations that actually boost the value of the home. Don’t get carried away and make a bunch of renovations that won’t actually pay off down the road.
View yourself as a House Flipper Instead of the Owner of a Fire-Damaged House
Here are some qualities that can help a person succeed at flipping houses:
Be a ‘Team Player’
Yes, a house flipper can do it alone and succeed but the truth is the entire process is much easier when you have experts that you can consult.
This means you may need to put together a team that may include a real estate agent; an attorney to help with paperwork; a contractor or renovator that you trust to handle repairs; a home inspector; and an insurance agent.
Be Knowledgeable About the Area
One of the best things a flipper can have going for them is an understanding of the area where they are buying houses. If you know what markets are hot … if you know what the schools are like and where the best amenities are … you can make the best renovation and selling decisions.
Be a Good Estimator
To succeed at flipping houses you must be able to accurately estimate the cost of any repairs you are going to be making so that you can pursue deals that will net you the most profits. That means with your fire-damaged house you should try to become familiar with construction materials, local construction codes, cost of local labor and the time the job will take.
Be a Do-It-Yourselfer
The best house flippers often have some home improvement skills and are able to step in and lend a hand or help get something done themselves. For example, the knowledge of how to install a sink, change a countertop, do basic electrical or plumbing work, and/or shingle a roof can help you estimate cost and rehab time.
Finally, a good house flipper will have patience. That means don’t rush into a deal simply because your house has been on the market for a while. You need to have the patience to wait for the best offer.
Pros and Cons of Becoming a House Flipper to Sell Your Fire-Damaged House
House Flipping Pros
- Quick Profit Potential – This is the main reason why people flip a house … to make a good profit quick. If done correctly, this real estate investing method can definitely help you accomplish this goal. You can make big profits in a mere matter of months.
- Gain Valuable Knowledge and Experience – Flipping your fire-damaged house will give you insight into construction as well as the local market. This is all knowledge that can benefit you should you decide later to pursue a real estate investing career.
- Get Connected – Flipping a house will also naturally increase your network of contacts as you will need to work with real estate agents, contractors, inspectors, insurance brokers and possibly even other investors. All of these contacts could come in handy should you decide to continue as a house flipper.
House Flipping Cons
- Failing to Profit – Unfortunately, there are a number of factors that can cause a house flipper to lose money instead of make a profit. Those factors include: unanticipated expenses, higher taxes, costs associated with holding a property and difficulty selling. You have to be able to find buyers who are ready to take action. Every day you hold the property could mean fewer profits for you.Unfortunately, with a fire-damaged house these risks can be high. For example, there may be more smoke and soot damage than originally thought and it may be extremely expensive to get rid of properly.
- Stress – Another negative that accompanies house flipping is stress. The whole process of rehabbing a property and then trying to sell it for a profit can be filled with stress. You need to have patience and confidence in your knowledge and ability to make good decisions.
There is Another Option to House Flipping
If all of this sounds like “too much,” there is another option:
Sell your house directly to We Buy Fire Damaged Houses. We pay great prices and all in cash so you get your money fast and can move on with your life.
We also buy houses “as is” so you don’t have to go through a stressful repair process. Simply fill out the form below to see if your home qualifies for a free quote.