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When a homeowner sustains fire damage to their home, they need to decide between fixing up the property and selling it as-is. The decision can be difficult because some pros and cons come with each option.
This article will discuss some of the reasons you should sell your house after a fire and also why you might consider repairing it.
To Keep It or Sell It?
If you’re reading this, then the possibility of repairing your home has likely come up. You’ve considered what it would take to fix it and how much time and money that might cost. Now you are weighing whether or not the effort is worth it when there’s a chance that your insurance company will give you enough money to cover the costs of selling your property as-is. The truth is, there is no easy answer. You’ll have to weigh out your options and see which gives you the better long-term value. Here are some things to think about before deciding if you should sell or restore:
What Are the Pros and Cons of Selling Your Fire-Damaged House As Is?
The pros of selling your fire-damaged house are usually what draws people to selling their home after a fire. The great thing is there are services and options to getting your home sold with little hassle. As evident at webuyfiredamagedhouses.com, there are home buying companies that will purchase your home as-is. This can be helpful if you don’t have enough budget for repairs or if you want to sell the house fast. Other pros include:
No repairs or remodeling
You can sell right away and don’t have to worry about any major projects, such as a kitchen renovation. This may be appealing if you’re not in the mood for home renovations.
Less time spent on it
If you’ve decided that the house is unsalvageable, you can spend less time taking care of it. Getting your insurance settlement check may also take longer if you decide to fix up the home before selling.
Lower taxes
You’ll pay lower property tax rates on a lot with an existing structure than one where construction has recently begun or completed.
What Is the Cost of Repairing Your Home?
If you decide to invest in repairing your home, the initial cost of repairs will be more than if you were to sell it as is. However, once the property is restored and back on the market for sale, its value may increase depending on how much work has been done. This could end up costing less money overall because you’ll get a better return on your home.
TIP: You can talk to a realtor about the costs of repairs and how they compare to what you might get for selling it as is.
Does Your Insurance Provide An Adequate PayOut?
Selling might be the better choice if your insurance company will give you a sizable payout. This is especially true if selling would net more money than repairs due to the higher property value or lower taxes mentioned above.
You also need to consider the time and hassle that come with remodeling a home. You may not have enough energy or money for it, especially if you’re just recovering from the fire damage itself.
Both options can be appealing depending on your financial needs and what’s right for your family. Keep these things in mind when making this important decision.
How Difficult Will It Be To Sell After You Repair It?
After the home is repaired, you need to think about how difficult it will be to sell. While some fire-damaged homes are deemed uninhabitable and must be torn down entirely, others can be salvaged with a lot of effort. You’ll want your real estate agent’s opinion on this before investing in repairs.
You will also have to state the prior damage of the home for new buyers which could put them off from buying the home.
Is this worth your time and money? If not, selling it as is might be the better option.
Can You Handle Living In Your Home Again After A Fire?
Another question to ask yourself is if you can handle living in the home again after a fire. If it’s hard for you and your family, selling might be better because you don’t have to live there while renovations are happening.
If not, then repairing may give you more peace of mind even though repairs will cost time and money along with property taxes and insurance payout.
You need to weigh the pros and cons before deciding whether you should sell or repair your home after a fire. A realtor can help with this process so it’s recommended that you speak with one for more insight on what steps to take next if your property suffered damage from a fire!
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