How to Sell a Fire Damaged Property

A house fire can be devastating. Not only is there a potential risk to life, but there is also the loss of possessions, cherished memories and even the ability to live in the house again. According to govt data, in the year 2023/2024 there were a huge 25,586 recorded dwelling fires, of which just over 24,000 were accidental. From this, we can surmise that some fires caused mass devastation to a home whereas others were relatively minor. Regardless, it is an emotional, worrying and stressful incident to handle.

This leads many homeowners to look at selling. A fire-damaged property no longer feels like the home it once did so selling often becomes the only route people want to take. It isn’t necessarily easy though. A fire-damaged home will see a vast drop off in value and have many unsure whether it is wise to make even a significantly reduced offer on it.

Luckily there are solutions. Cash house buyers like Bettermove offer a route where a sale is guaranteed. In this guide, we will take you through the process of selling a fire-damaged property.

What is a fire damaged property?

This may sound like a question with an easy answer, and it kind of is. A fire-damaged property is classed as any property, whether it be residential or commercial, that has been burnt by fire. The damage can range from minor, easy-to-repair water or smoke damage, through to the complete destruction of the home.

Fire damage puts you in a tricky position. You could look to repair the home, which is likely to cost thousands of pounds and take considerable time. You could look at your insurance policy, but it may not offer significant coverage. This can then leave you with only one option. To sell it. But who will pay for a house that is going to cost thousands of pounds to repair?

Some property investors might be interested, and those looking for a cheap home may consider making an offer, but you’ll find your options limited.

How do most fires at home start?

Most house fires are accidental as we saw from the numbers above, with the majority of them starting in the kitchen. According to insuranceclaims.co.uk, 49% of house fires stemmed from cooking. Heating caused 13%, and 9% of house fires were caused by faulty wiring. Perhaps the biggest problem here though is that even if the fire starts small, the lack of firefighting equipment in many domestic properties allows it to spread fast and turn into something much bigger.

What are the obligations of a homeowner with fire damaged property?

The level of fire damage can vary greatly, and in many cases, it can pose a risk to the public. Should you be looking to sell the home, or even remain living in it, you are duty-bound to remove any risk of harm to the public. This could mean addressing structural defects or dealing with any damaged items that could cause injury. Not doing this could result in a fine from the local authorities if your home is classed as unsightly, disorderly or unsafe.

This leads occupants to look for a way to sell a house fast as the potential costs for keeping the home safe can rapidly rise.

Does fire damage have to be disclosed to potential buyers?

Yes. If the property has been burnt, it must be disclosed, even if you have since restored the home as best you can. It is written into law that property descriptions must be accurate and not misleading.

How much does fire damage affect property value?

The value will undoubtedly drop. People are not fans of buying a property that may cost significant sums to refurb and return to its best. Especially at the price you would hope to sell your home for. Furthermore, there may be a concern that the building is unsafe, even if it passes safety checks. This makes it impossible to list the house at its true value.

Should a buyer still be keen on the property, even with the knowledge that it is fire damaged, there is every chance a lender will not approve a mortgage. The risk could be seen as too great.

This leaves you either greatly reducing the asking price and hoping someone makes an offer or looking at alternative options that can still secure a sale.

Can I restore a fire damaged home before selling it?

You can but it would pay to be aware of the costs involved. To restore a fire damaged home, you could replace window frames, replace any woodwork, rewire, lay new carpets and so much more. This can soon see costs rise fast and could make it more viable to look at selling rather than restoring. According to Checkatrade.com, the average house fire damage restoration cost comes in at £35,681 but can reach more than £70,000 in some cases. Much will depend on the extent of the damage, the size of the property and the type of damage that has happened.

How can I sell my fire damaged property?

Whilst the traditional route to sale is pretty much a no-go, you still have options. The traditional estate agent is unlikely to help you sell your fire damaged home. With the majority of buyers needing a mortgage and homes with fire damage being somewhat less desirable, it would be somewhat of a task to find an estate agent who could sell your property at a reasonable price and not charge you extortionate fees to do so.

This leaves you with two other options:

Selling a fire damaged home at auction

You could look at property auctions. They are fast and often used by property investors who seek out cheap, damaged properties that they can work on and then flip for a profit. The only drawbacks are that a sale is not guaranteed, and fees do apply. This means you could list the property, pay the fees and still be in the same position the moment the gavel strikes for the final time.

You also have the problem of a buyer withdrawing. Auctions have specific rules, and buyers, despite it being costly to them to do so, can still withdraw their offer. This means you would then have to start the auction process, and its fees again.

Selling a fire damaged house to a cash house buyer

As this piece began, we touched upon selling to a cash house buyer like Bettermove and this is likely your safest and best option. Property buyers like this make offers on properties regardless of location or condition and guarantee a sale, in our case, this can be in as little as seven days. The offer will be less than market value but the sale is guaranteed upon acceptance of the offer. Legal fees are covered too, meaning the cash you are offered is the cash you receive. With sales timeframes built around your needs, you can move as fast or as slow as you need to, giving an added peace of mind that this property transaction will not be a stressful one!

If you have suffered from the effects of a fire at home and are struggling to sell, speak to our compassionate team at Bettermove. We work closely alongside you to ensure the property sale you want happens and happens fast. With a streamlined process, we remove all the stress, concern and worry a property sale normally brings, and instead, make it quick and easy. Contact us today to find out more.