How to Price Your Fire-Damaged House

There is nothing as wrong as having your highly-invested property gets damaged by fire. Sometimes, it becomes so hectic that you decide to sell the house and seek a new apartment. However, such also meets a hurdle since you may not know how much to sell your fire-damaged home. If you are facing such a situation, do not worry anymore. We have covered some of the aspects you can consider in setting up your damaged house’s price. Here are the tips to consider. 

• Cost of Repairs

Repair costs will significantly determine your damaged house’s value since this will be created by how extensive the damage was. This idea means repairing the home before selling it. But it will be okay if you decide to sell it the way it is. The cost for the restoration of a damaged house depends on its size, design, and damage. It can range from a few dollars to almost half of the building price. If you check that you will be going at an extra loss in repairing the house or don’t have the repair budget, it’s better to sell it the way it is and avoid the repair costs.

• Area Home Sales Prices

After repairing your house or deciding to sell it the way it is, you must consider the area selling prices. A home in a city costs more as compared to one in a remote location. One way to know these prices is by working closely with the area real estate agents who can run a comparative analysis for you. Other than this, you can check on a blog on profiting from buying damaged houses to guide you on the aspects to consider when selling your home. Another alternative way is to check the surrounding dwellings, ask their prices, and sell yours at a discount. The discount should incorporate the fire damages.

• Talk to Your Real Estate Agent

After getting the prices and being satisfied with the sources, it’s time to sit with your real estate agent and decide on the next step to take. If you don’t have an agent, you can consult your family or friends. In setting the price, you need to consider several factors to avoid selling the house too low or putting on a price that will make it difficult to get a buyer. An agent will give you the recommended price you can negotiate and come up with a conclusion. One thing you should note, though, is that agents may opt to provide you with a lower price to sell the house faster for them to get their commission. Ensure they give the criteria used in setting the price and, if possible, consider consulting several sources. 

• Account for the Fire in Your Pricing

When setting your final price, you need to know that buyers will consider fire damages before committing to purchase the house. You should, too, when setting the price. You should note that no one goes to the real estate market looking for a house razed by fire and that the pricing must be considerate. With this in mind, you have to put at least a lower price or provide room for negotiations with the buyer. Another thing is that you shouldn’t expect your house to sell faster. It will take time to get the right buyer. You have to be patient and open room for negotiations. 

• Pick the Right Pricing Model

If you have been in business, most sellers do not put prices that end with zero when selling a valuable item, including a house. A zero at the end will trigger the buyer to negotiate the price, basing the number as the initial price. This idea means that instead of selling your house at $200,000, you can consider making it at $199,999 or $199,000, depending on the selling strategies used in your area. What does this strategy mean? In most cases, when you don’t include a zero at the end, the buyer will see the price as discounted and might not take long in negotiations. Putting a rounded figure will portray there is more room for price negotiations. You can also set the round figure, slash it and put a slightly lower price to show you have made the price cut. 

Regardless of the means you use, ensure you get something out of your fire-damaged house. If you see the selling process as complicated and tiresome, you can consult agents who buy damaged houses and negotiate on price. They often purchase homes the way they are and guarantee you some quick cash. We do hope the article has been of help.