When the property is damaged by fire, you have the option either to repair the property or to sell the property. The decision to choose from the two options depends on certain factors like the extent of the fire damage, the time and resources that are available, and the prospect of a successful insurance claim. If the property is severely damaged, the owners of the property might decide to sell the property instead of going for renovation of the building. Fire damage due to wildfire reduces the properly value.
It is the responsibility of the owner to ensure that there is no harm caused to the public. If the site or the property appears messy, the council can even be fined for failing to clear the mess. Therefore, appointing a fire-damaged clean-up company can be helpful. Even though it may seem like a low priority to spend money on keeping the fire-damaged property safe, it is a good investment as it can help in lessening further secondary damage.
Selling a fire-damaged house
The owners of the fire-damaged property want to sell it off once the insurance and the police inquiry formalities are completed. An estate agent may promise to assist you in selling the property at a good price, but in reality, it may not be the case. The trade buyers purchase the property differently. Auction is a better option while dealing with trade buyers. The properties can be sold for a fair price in auction sales because many buyers are competing against each other and the price will see a hike. The sale will be entirely transparent at the auction sales.
At what price will the fire-damaged houses be sold?
A trade buyer prefers to sell the fire-damaged property at a profit of 20%. When the property is not habitable for mortgage lending, the cash customers will ask for a discount, likely 10%. Regular trade buyers will pay a fair price, amateur buyers pay a little more price resulting in obtaining a higher sale price during the auction sale.
The best options to sell a fire-damaged house in the UK
If you want to achieve a certain price, the auctioneer must agree to a high reserve price. The reserve price will be the least amount that your property will be sold for. The price of the auction sale will start from low and then slowly increase. In other methods of sale, either in the direct sale or in an estate agency sale, the price starts to negotiate down from the original price and this could continue for a few months depending on the situation of the buyer.
Selling a fire-damaged leasehold flat
Selling a fire-damaged flat and a freehold house is different. In the freehold house, in certain cases, there could be damage to the communal areas or neighboring flats. When the fire-damaged flat needs to be sold, checking with the freeholder to see if you can proceed with the sale by taking their consent is equally important.
Selling a fire-damaged house at auction
Evaluate the property to determine the starting price. The valuation report that is provided by the insurance company can be a great help. Selling the fire-damaged property at the auction is the best option.