If your house was heavily damaged by a fire or a storm, you may believe that the property is now unsellable. In a traditional sale, your effort to sell your damaged house fast is an uphill climb at best. However, it is possible to sell your damaged house if you work with a local home buyer in Northern Indiana. You can sell your house as-is without making any repairs or renovations to the property.
Regardless of your situation or the condition of your property, a local buyer can make a fast cash offer, close the sale in as little as seven days, and put cash in your hands. There are no closing costs, no realtor commissions, and no preparation costs. Selling your damaged house is possible when you sell it as-is for cash.
Why Damaged Houses Do Not Sell in the Real Estate Market
Any house that has been lived in for a while will have some flaws. A seller may need to do a paint job, renovate a room, or buy some replacement appliances. However, a damaged house presents significant challenges that many homeowners do not want to deal with. Some of the main reasons why a damaged house will not sell in the real estate market include
Most damaged houses have major structural problems that make them unsafe to live in.
- Weak roof
- Worn out framework
- Holes in the flooring
- Damaged electrical system
- Molded or rotting wood
- Cracked foundation
These types of problems put new homeowners at risk of injury or fatality. Furthermore, there is no guarantee that the home will protect the owners during severe weather.
Some of the most expensive house projects involve repairing structural damage. Foundation repair, roof replacement, mold remediation, central air replacement, ponding issues, Septic system replacement, or water line replacement can cost thousands of dollars. If you are trying to sell your house, you may not have the funds you need to make the repairs and make the property sellable.
Trying to pass these repairs off to a new homeowner is impossible. A buyer simply does not want to sink thousands of dollars into a repair right after moving into a home. They are too busy dealing with a new mortgage and monthly utilities.
Insurance and Warranties
One of the selling points of a home is that it is still under warranty or insurable. A home in good condition costs less to insure than a damaged house. Someone who is buying a house may not be able to afford large insurance premiums just to live on the property. Even if they can afford insurance, there is a good chance that the home is no longer under warranty due to the damage.
If a storm or fire damages the home after you sell it, the homeowner may have to incur 100 percent of the repair costs. The insurance company could easily deny a claim, citing that the home had pre-existing damage.
How to Assess Your Damaged Home's Value
It takes more time, effort, and money to prepare a damaged house for the market than it does a home in sellable condition. As the owner, you must account for this when assessing your home's value. Unless you have thousands of dollars in surplus cash, you will lose money in repairs and other costs that you don't currently have. When trying to sell your damaged house, consider these factors.
Cost of Repairs
Most damaged homes have some type of structural damage that compromises the building's integrity. There may be extensive damage to the walls, roof, foundation, or a key system such as electrical, HVAC, or plumbing. It costs thousands of dollars to repair a damaged home at this level. The cost of repairs typically includes building supplies and labor, followed by inspections and appraisals.
Insurance companies can also total houses like they total cars. If the estimated cost of repairing or replacing the damaged home exceeds the home's actual cash value, the insurance company may declare the home to be a total loss. This means all repairs expenses are out of pocket. If you decide not to repair the house, your home's value goes down significantly.
The Type of Damage
Some types of damage are more extensive than others. For instance, smoke from a fire can reach every part of the house, damaging numerous components due to smokey smell and smoke/ash stains. You could spend hundreds of dollars cleaning your house in addition to repairs from fire damage.
Water damage may be isolated to certain areas such as a basement or first floor. However, water damage can cause structural problems, an unsafe electrical system, or broken plumbing. These types of problems often require extensive repairs. If you choose not to repair the house, you will have to account for these problems when assessing the property value.
The Real Estate Market
Your house value will depend on the real estate market in your area – more specifically - in your neighborhood. If you sell the house in a strong market, you may be able to sell it for more than usual, simply because home prices are up across the board.
However, there are no guarantees, as you still must figure in the house's damage. You may be lucky to get anything for the house in a weak market. If too many houses are for sale in the immediate area, buyers are not likely to give your house a look at all.
Sell My House Fast for Cash in Northern Indiana
If you are ready to sell your house or commercial property, then now is the time. You do not have to wait for months to sell your house. HouseMart can make a cash offer and put cash in your hands in as little as 30 days. Call 219-230-8735 to get a fast cash offer. We are local home buyers in Northern Indiana.