When purchasing a home, buyers often avoid options that involve significant damage. Fire-damaged homes can be particularly unattractive to those looking to buy a home, but you shouldn't count them out completely. These homes tend to be cheaper, sometimes making them a great option for those looking to save money. However, due to the challenges associated with fire damage, they are still not suitable for everyone. There are some factors you should consider before purchasing a home that has been damaged in a fire. In an excessive interview with House Digest, Ryan Fitzgerald, real estate expert and owner of Raleigh Realty, says you need to consider things like health risks, renovation costs and the extent of the damage.
Are you thinking about purchasing a fire hazard home and reselling the property after fixing it? Fitzgerald explained that there are some other aspects you need to consider. “If this is the case, you should review the property's insurance coverage, financing options and resale potential to ensure it aligns with your budget and long-term goals,” he shared. Buying a fire-damaged home is a risky move. So consider using Fitzgerald's advice to help you decide if it's the right choice for you.
Consider damage, health risks and repair costs
Obviously, the extent of the damage is one of the most important aspects to consider before purchasing a fire-damaged home. However, Fitzgerald warns that you need to look beyond the immediately visible damage. “Most fire damage is obvious, but if you're thinking about buying a home that's been damaged by fire, you need to make sure you understand the extent of the damage, including structural integrity and hidden issues like compromised wiring, plumbing, plumbing, “Or isolation,” the expert said when speaking exclusively to House Digest.
He also recommends calling a professional to thoroughly assess the destruction. This can help you get an accurate estimate of how much fire damage restoration will cost you. A professional can also let you know if the home is even safe to live in.
A thorough safety assessment should be a priority to avoid the health risks associated with living in a fire-damaged home. Fitzgerald explained that this includes dangerous odors and toxins. The final aspects that the real estate expert recommends are your renovation budget, whether you want to sell the property.
Pros and Cons of Buying a Fire Damaged Home
Evaluating the pros and cons of purchasing a fire-damaged home will also help you make the right decision based on your particular needs. Fitzgerald spoke exclusively with House Digest and shared his expert insight into the main pro of buying these homes, which is the low purchase price. “This can be helpful for those budget-conscious buyers or investors looking for opportunities in desirable locations,” he said. Another advantage of these homes is that there is usually less competition among potential buyers, meaning you have more negotiating power.
According to Fitzgerald, fire-damaged homes have obviously come with higher renovation costs. The expert revealed that you may also find it difficult to insure or finance the property due to liability. With that in mind, some fire-damaged homes simply aren't worth the investment. Luckily, Fitzgerald shared some warning signs that can help you avoid a particular property altogether. “If you're thinking about buying a fire-damaged home, I would be very wary if you find that the structural integrity of the property is compromised,” he explained. “By that I mean things like cracked foundations, distorted load-bearing walls or sagging roofs.”
In these cases, you would be doing a lot more than just deflecting the walls to remove soot. There can be serious core damage that is incredibly expensive to repair. Fitzgerald warned that significant smoke, soot, electrical, plumbing or HVAC system damage is also something to watch out for. When it's time to repair the home, the real estate expert recommends hiring a professional to guide you through the process.