// // How to Sell a Fire-Damaged House for More Cash
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Buying or Selling a Home With Pest Issues Buying a Home With Pest Issues Purchasing a home with pest issues can be a major concern, as pests can cause damage to the structure of the home and create health problems for the occupants. It is important to have a professional pest inspection completed before purchasing a home to identify any existing or potential pest issues. Pest infestations can have serious consequences for the integrity of a home and the health of its occupants. Termites, for example, can cause significant damage to the structural wood of a home if left unchecked. Other pests, such as mice and rats, can damage wiring and insulation, posing a fire hazard. They can also carry diseases, which can be transmitted to humans through bites or contact with contaminated surfaces. It is important to have a professional pest inspection completed before purchasing a home to identify any existing or potential pest issues. A pest inspector will look for signs of infestations, such as droppings, nests, and damage to wood and other building materials. They will also look for potential entry points and conditions that may attract pests, such as excess moisture or standing water. If the inspection reveals the presence of pests, you should consider negotiating with the seller to have the pests treated or for a credit towards the cost of treatment. You may also want to consult with a real estate lawyer to determine your rights and options as a buyer. In addition, you should consider the long-term cost of pest control and make sure it is factored into your budget for maintaining the home. Pest control can be expensive, and it is important to have a plan in place to address any future pest issues. Selling a Home With Pest Issues If you are selling a home that has pest issues, it is important to be proactive in addressing the problem and transparent with potential buyers. Pest infestations can be a major concern for buyers, as pests can cause damage to the structure of the home and create health problems for the occupants. The first step in selling a home with pest issues is to have the pests professionally treated. A pest control company can figure out how bad the problem is and suggest a plan for treatment. Make sure to do what they tell you to do and give the treatment enough time to work. It is also a good idea to have the home re-inspected  to ensure that the pests have been effectively eliminated. Next, it is important to disclose the pest issue to potential buyers. Most states require sellers to tell buyers about any major problems, like pest infestations, that they are aware of. This can be done through a property disclosure statement, which should be provided to potential buyers as part of the home sale process. It’s important to be honest and clear in your disclosure, because not telling the truth about known major flaws can cause legal problems in the future. It is also a good idea to provide documentation of the pest treatment, such as receipts or a certificate of treatment. This will show that you have taken steps to deal with the pest problem, which can help buyers feel less worried. Lastly, you might want to think about giving the buyer a credit toward the cost of future pest control. This can help ease their concerns and make the home more attractive to potential buyers. If you can’t offer credit, you might have to lower the price of the home to make up for the cost of pest control. It is important to be flexible and open to negotiation in order to make the sale. Final Thoughts In the end, whether or not you buy a home with pest problems will depend on your personal situation and how willing you are to take risks. If you are okay with how much it will cost and how much work it will take to get rid of the pests and are sure that the problem can be solved, you might want to think about making the purchase. However, if the pest issue is significant or the cost of treatment is prohibitive, it may be best to look for a home without pest issues. Greg BilbroGreg Bilbro is the CEO and co-founder of Fair Property Buyers. After 20 years as a residential Realtor, Greg founded Fair Property Buyers, a nationwide group of real estate professionals committed to helping homeowners sell their problem properties quickly and easily. Fair Property Buyers helps people across the U.S. sell their homes for a fair cash price, without the hassles. Prior to starting Fair Property Buyers, Greg was a Series 7 and 63 securities and registered investment advisor with New York Life and NYLife Securities, where he was named “Rookie of the Year,” and named the youngest Partner in the U.S. Greg is a native of Texas and holds a Bachelor of Science degree in Biochemistry from the University of New Mexico. He currently hangs his hat in Scottsdale, Arizona with his sidekick Frenchie, “Bity".
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Can I Sell my House During Foreclosure Introduction For someone who is unable to keep up with mortgage payments or other liens on the home, the foreclosure process is frequently drawn out and difficult. For those who are currently going through this process, there may be ways to continue without losing everything. Because of this, the people who live in the house can stay there until the dispute is completely settled. The homeowner should stay in their home, talk to a real estate lawyer, and do research to avoid a situation in which debts may still be owed for different reasons. This might result in a better outcome. The house can still be sold for a profit while the foreclosure process is ongoing. The current owner may sell the property for more than what is owed in mortgage payments if the property has not yet been sold through an auction. This would then generate enough income to pay off the mortgage debt and leave money on the table to buy a new home or rent or lease an existing one. This has to be completed, though, before the property is sold at auction to fund the foreclosure process. This calls for prompt action and proper documentation Aspects to Consider with Foreclosure A bank agent who starts the foreclosure process may be contacted by someone who is unable to make the required mortgage or loan payments to keep the account open. The homeowner may have other options, though, as these processes can take months or even years, depending on a number of factors. In some circumstances, the financial lending company may look for an alternative to foreclosure. It’s possible that a payment extension will be given. It might be possible to refinance or make a new payment plan by adding to the original agreement. Before leaving the property to foreclosure, it is best to get in touch and talk with the company to discuss any potential alternate routes. Others look at the contract for the lending facility to see what might be possible based on the fine print. To make sure that the payments are made at a lower interest rate or payment amount, another company may be contacted, or there may be a grace period to get the needed funds. Before taking any other action, it is best to seek the advice of a real estate attorney if this is not possible. He or she might explain that the best course of action might be to sell the property. However, the homeowner might only have a limited amount of time to do so. This means that before continuing with a sale before an auction, he or she should make sure that all of that information is known. Hiring a Real Estate Lawyer or Agent While the home is going through the foreclosure process, a seasoned and knowledgeable real estate agent might be able to get in touch with the lending institution and try to negotiate so that the property has time to sell. This may be a good way for the agent in charge of the case to make sure the homeowner gets their money, even if the bank or another institution won’t work with them. Before the sale can happen, a realtor might need to conduct a market analysis on the property to determine its true value. Then, to bargain with the bank, third-party authorization forms are typically required. In general, it is preferable to sell the house for a profit as opposed to a short sale or auction, where the owner receives nothing after the house is bought by the buyer. Due to the foreclosure process costing the company money and not always recovering all of the money owed, lending institutions believe working with the sale is a better alternative than going through with the foreclosure. It might take 90 to 120 days to complete a short sale in which the owner receives no money. During this time, the homeowner may still be making mortgage payments. Depending on the state in which the house is located, the foreclosure process can take weeks or months to complete. The completion of all paperwork can occasionally take up to or even longer than a year. Depending on the state, the owner usually has up to 90 days to fix a late payment so that the problem can be fixed and business can go on as usual. A realtor or real estate agent should be hired to help sell the house if this is not possible. A real estate lawyer should be hired to handle these things from start to finish to make sure that everything is valid, legal, and done the right way. Greg BilbroGreg Bilbro is the CEO and co-founder of Fair Property Buyers. After 20 years as a residential Realtor, Greg founded Fair Property Buyers, a nationwide group of real estate professionals committed to helping homeowners sell their problem properties quickly and easily. Fair Property Buyers helps people across the U.S. sell their homes for a fair cash price, without the hassles. Prior to starting Fair Property Buyers, Greg was a Series 7 and 63 securities and registered investment advisor with New York Life and NYLife Securities, where he was named “Rookie of the Year,” and named the youngest Partner in the U.S. Greg is a native of Texas and holds a Bachelor of Science degree in Biochemistry from the University of New Mexico. He currently hangs his hat in Scottsdale, Arizona with his sidekick Frenchie, “Bity".
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Closing Costs – What to Expect When you sell your house, there are many hidden closing costs that can eat into your profits. This article highlights what those common closing costs are. From agent commissions to transfer taxes, it’s important to be aware of all the potential expenses. One of the biggest costs you can expect is the real estate commission. This is a fee paid to the agent who represents the buyer. The commission is typically a percentage of the sale price, so it can add up to a significant amount of money. Fortunately, many closing costs are tax-deductible, and they can be offset against the proceeds of the sale. However, it’s important to be aware of all the potential costs involved so you can budget accordingly. Below are some of the most common closing costs and how you can budget accordingly: Agent commissions: Realtor commissions are the fees real estate agents charge for their services. The fee is typically a percentage of the total sale price of the home, and it is paid at closing. While realtor commissions can vary depending on the agent and the market, they are typically around 5-6% of the sale price. For example, on a $200,000 home, the realtor commission would be $10,000-$12,000. Realtor commissions are negotiable, and some sellers may negotiate a lower rate. However, it is important to remember that the real estate agent is providing a valuable service and is entitled to fair compensation. It is important to understand realtor commissions so you can factor it into your budget. Appraisal fee:  A home appraisal is an important part of the closing process on your home purchase. The appraiser will visit the property and assess the value of the home, taking into account factors such as the location, condition of the property, and recent comparable sales in the area. This appraisal will be used to determine the amount of closing costs that the buyer will need to pay. In some cases, the appraised value of the home may be lower than the purchase price, in which case the buyer may need to negotiate with the seller to bring the price down to match the appraisal. In other cases, the appraised value may be higher than the asking price, giving the buyer some negotiating power when it comes to closing costs. Either way, it is important to have a clear understanding of your home’s value before heading into closing. Legal fees: You may need to hire a lawyer to handle the legal aspects of your sale, or if you are selling directly to a buyer.. Their fees will vary depending on the complexity of the transaction and the location of the property. In some cases, the seller is responsible for paying all the legal fees associated with the sale, this includes any fees associated with the transfer of ownership of the property. Title insurance: This is a type of insurance that protects the seller against any claims made on the title to your property. It is typically required by the lender if you have a mortgage. The exact amount you will pay as a seller will depend on the specifics of your title insurance policy. However, knowing the typical closing costs can help make sure you’re not caught off guard. Mortgage discharge fee: If you have a mortgage on the property, you will need to pay a fee to have it discharged. This fee is typically around $200-$300. These fees are a common closing cost associated with refinancing your home. Discharge fees are paid to the lender to cancel an existing mortgage and create a new one. The fee is typically a percentage of the total loan amount but can vary depending on the lender. Be sure to ask about the fee and get an estimate from your lender before making any decisions about refinancing. Property taxes: One often forgotten potential closing cost is property taxes. Depending on the location of the property and the value of the home, property taxes can be quite expensive. In some cases, they can even exceed the mortgage payments! As a result, it’s important to be aware of the property tax situation before you purchase a property because they must be paid in full before the sale can be completed. Credit report: One cost that is often overlooked is the cost of ordering a credit report. A credit report is necessary because lenders use credit report scores to determine if buyers qualify for a loan and what interest rate they receive. While the cost of ordering a credit report may seem insignificant, it can add up – especially if you’re closing on multiple properties. For example, if you’re closing on a home and an investment property, you’ll need to order two credit reports. The cost of ordering two credit reports can range from $30-$50, depending on the provider. Pest inspection: A pest inspection can help identify any potential problem areas like termites and dry rot from pests, which could lead to costly repairs down the road. This will help uncover any hidden issues and help you with negotiating repairs or treatment prior to closing. Recording fees: To finalize the sale, you will need to pay recording fees. This amount is charged by your local government for registering the deed to your new home. Utility bills: Any outstanding utility bills will need to be paid before the property changes hands. These are the fees associated with finalizing the purchase, and they can add up quickly. utility bills are one of the most common closing costs. If you’re buying a home that is already occupied, you’ll need to pay for the utilities that have been used, through the date of closing. This can include things like electricity, gas, water, and trash service. In some cases, you may also be responsible for paying the seller’s utility bills if they haven’t been paid up to date to ensure you can have services turned on in your name. As you can see, there are a number of different closing costs that can add up when selling your house. It’s important to be aware of all of them so that you can budget accordingly and avoid any nasty surprises at the end of the process. Greg BilbroGreg Bilbro is the CEO and co-founder of Fair Property Buyers. After 20 years as a residential Realtor, Greg founded Fair Property Buyers, a nationwide group of real estate professionals committed to helping homeowners sell their problem properties quickly and easily. Fair Property Buyers helps people across the U.S. sell their homes for a fair cash price, without the hassles. Prior to starting Fair Property Buyers, Greg was a Series 7 and 63 securities and registered investment advisor with New York Life and NYLife Securities, where he was named “Rookie of the Year,” and named the youngest Partner in the U.S. Greg is a native of Texas and holds a Bachelor of Science degree in Biochemistry from the University of New Mexico. He currently hangs his hat in Scottsdale, Arizona with his sidekick Frenchie, “Bity".

How to Sell a Fire-Damaged House for More Cash

Introduction

Nobody wants to be awoken by the sound of a smoke detector going off. A house fire is one of the most dangerous things that can happen to your house. It’s especially devastating if you were hoping to sell your home soon and are now concerned about the difficulties of selling a house with fire damage.

No matter how bleak the situation might seem, there is still a way to sell the property.

When selling a fire-damaged home, homeowners can choose to sell their home “as-is” to a cash buyer, or they can focus on restoring their home to its previous condition and selling it to a traditional buyer through an experienced real estate agent.

Immediate Action Following a House Fire

It’s natural to feel overwhelmed, emotionally drained and worried about the financial consequences of a house fire. However, there are critical steps you must take immediately following a house fire.

Ready.gov has a comprehensive guide about home fires, and they recommend contacting the Red Cross or your local disaster relief service if you need temporary housing, food, or medication. They can also assist with mental health support and document recovery for financial recovery.

After contacting a disaster relief organization, you’ll need to:

  • Enter the house only after the fire department has confirmed that it is safe to do so.
  • Notify utility companies of the fire and request an emergency shut-off service.
  • To begin the claims process, contact your homeowner’s insurance company.
  • Hire a fire restoration contractor to assess the damage, provide estimates, and begin the cleanup process.
  • Photographs and detailed notes should be used to document the damage.
  • For the insurance claim, obtain an official report from the fire marshal or fire investigator.
  • After getting the all-clear, open all of the windows in the house to let the smoke out.

Next, you must decide whether you will sell your home as-is or you will make repairs.

Choosing the Right Approach to Sell

If you want to sell your home after a fire, you have two choices: sell it as is or repair the home.

Of course, in many cases, selling as-is is the easier option. You won’t have to deal with hiring contractors, managing the process, relocating, or living through it if it’s your primary residence. Most real estate agents, however, agree that the convenience of not doing the work will cost you in terms of the selling price.

Repairing the house increases its marketability. The average consumer is intimidated by the prospect of remodeling. Because some investors avoid fire-damaged homes, the buyer pool is very small.

Furthermore, buyers will expect a significant discount if they purchase a fire-damaged property. Making the repairs yourself, on the other hand, may result in a 100% or higher return on investment.

Normally, things like painting, cleaning, and curb appeal are relatively inexpensive. My rule of thumb is that spending 1% to 2% of the home’s value correctly will net you at least that much more upon sale. Not to mention that it will help you sell the property faster and save you holding costs.

You should have the fire-damaged house repaired for the best return on investment. There are many damaged properties on the market as a result of so many distressed sales and foreclosures, and they are heavily discounted in order to sell.

5 Steps to Selling a Fire-Damaged House

If you’re not in a hurry to sell your home and want to hire a real estate agent, you should follow these five steps to selling a house with fire damage.

1. Return the house to its original state.

Restoring your home to its original condition can be costly. Repairing fire and smoke damage can be extremely expensive with the national average being just under $20,000 for a total repair. Larger fires that destroy a kitchen or cause significant roof damage can cost more than $50,000 to repair.

Keep in mind that these costs will be determined by several factors, including:

  • The severity of the fire damage
  • Water cleanup
  • Cleaning up after using fire extinguishers
  • Soot removal
  • Smoke damage

You must first contact your insurance adjuster or representative before doing any work on your home. They will go over your policy with you and explain what is covered as well as how much you will have to pay out of pocket.

With a few exceptions, such as arson and a negligently maintained structure, most insurance policies cover fire damage. Insurance may also cover lodging expenses while you repair your home, as well as any damage caused by the fire to your neighbors.

2. Inform potential buyers of any previous fire damage.

It’s not uncommon for homeowners to ask, “Do you have to disclose a fire when selling a house?” after repairing their home and everything looks great. The house has been repaired, there is no longer any damage, and it no longer smells like smoke. You will almost certainly need to disclose the fire in order to comply with your state’s disclosure laws.

The majority of people will discover or become aware that the house has been set on fire. So the only way to alleviate that and sell that home for a fair market value is to be extremely extensive with the details and what you did to put that home back together.

3. Maintain detailed restoration records.

When repairing fire damage to your home, you must keep detailed records of all work done.

A buyer will examine the property under a microscope. So you just have to be ready for that, even more than your standard inspection and purchase.  Dot your “i’s and cross your t’s” in terms of documenting everything done to bring that house back up to speed, right down to photos and paid invoices.

4. Do not withhold information from potential buyers.

You should be honest when selling a fire-damaged home, including how the fire started.

People will ask, out of curiosity.  Based on that, they make their decision. If it’s a standard kitchen fire, electrical fire, or vent hood, it goes right back to the documentation showing them that, “This is what happened, and this is what we’ve done to make sure it doesn’t happen again,” report experts.

5. Have patience!

Selling a fire-damaged home can be difficult. Potential buyers will almost certainly have a lot of questions and will want to go over every repair that was done as a result of the fire. They may also ask for specialized inspections such as:

If the fire started in the chimney or fireplace, a chimney inspection is required.

If the fire was caused by an electrical problem, an electrical inspection will be performed.

A roof inspection to ensure that the fire did not cause any damage to the roof.

An HVAC inspection if the fire was caused by a faulty heater, inadequate ventilation, or other factors.

You don’t want to become obsessed with “I have to sell this house in 20 days.” Instead, let’s talk about getting from point A to point B and everything in between, and making a plan for each. That will greatly simplify your processes. If you do all of those things correctly, you will receive a fair market value for your home.

Greg Bilbro

Greg Bilbro is the CEO and co-founder of Fair Property Buyers. After 20 years as a residential Realtor, Greg founded Fair Property Buyers, a nationwide group of real estate professionals committed to helping homeowners sell their problem properties quickly and easily. Fair Property Buyers helps people across the U.S. sell their homes for a fair cash price, without the hassles. Prior to starting Fair Property Buyers, Greg was a Series 7 and 63 securities and registered investment advisor with New York Life and NYLife Securities, where he was named “Rookie of the Year,” and named the youngest Partner in the U.S. Greg is a native of Texas and holds a Bachelor of Science degree in Biochemistry from the University of New Mexico. He currently hangs his hat in Scottsdale, Arizona with his sidekick Frenchie, “Bity".

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