Fire and water damage
Selling a fire or water damaged house
A damaged house is usually a house with an open insurance claim, a contractor who has stopped returning calls, and a mortgage that still has to be paid. The repair is the smallest of those problems.
The insurance question comes first
If a claim is open, the settlement and the sale have to be coordinated. Who receives the funds, what the lender requires, and whether the policy pays replacement cost or actual cash value all change the numbers.
That is a conversation to have with your adjuster and, if the amount is significant, with someone who reads policies for a living. We are buyers, not adjusters.
What we can do with the property itself
We buy houses in the condition they are in: fire damage, smoke damage, water intrusion, mold, a roof that failed, or a slab that moved. We are not relying on a lender's appraisal, so a house that cannot be financed is not a house we cannot buy.
If the structure is a teardown, say so and we will treat it as land value plus demolition. That is a real answer, not a polite refusal.
Who holds the insurance money
If a claim is open when the property sells, the lender usually has to agree to how the funds are handled, and the policy may pay the repair cost only as the work is completed. That is why a damaged house is often easier to sell with the claim assigned than with it settled.
The details depend on your policy and your lender. Get the answer in writing from the adjuster before you sign anything, not from a buyer.
What a teardown is actually worth
Land value, minus demolition, minus any environmental work, minus the time to permit and rebuild. On a good lot in a strong area that can still be a real number; on a lot with access problems or in a flood zone it can be close to zero.
We will tell you which of those you have. It is a shorter conversation than a listing and a much shorter one than a repair.
Useful to have ready
- The claim number and the adjuster's contact
- Any scope of work or engineer's report
- Whether the property is habitable or red-tagged
- The mortgage payoff, since it survives the damage
Common questions
Will you buy a house that is a total loss?
Sometimes, at land value less demolition. It depends on the lot, the zoning, and what is left standing. We will tell you plainly which of those applies.
Can I sell before the insurance claim is settled?
Yes, but the claim has to be assigned or resolved in a way the lender and the insurer both accept. This is the part worth getting advice on before you sign anything.
The house has mold. Is that a dealbreaker?
No. It is a cost. The variables are how far it has spread and whether the cause (usually water intrusion) has been stopped.
Can I sell the house and keep the insurance claim?
Sometimes, because the claim covers your loss rather than the property itself. That is a question for your adjuster and your carrier, and the answer should be in writing before you commit to a sale.
What if the property has been red-tagged?
We can still buy it, usually at land value less demolition. A red tag means it cannot be occupied, not that it cannot be sold.
Related
Next step
Tell us the address and what is going on with it. We will look at the property and put a number in writing. Sending a message creates no obligation, and we will say plainly if we are not the right buyer for it.