What You Need To Consider Before Buying A Fire Damaged Home

When purchasing a home, buyers often avoid options with substantial damage. Fire damaged homes can be particularly unappealing to those on the hunt for a property, but you shouldn't count them out completely. These homes are typically priced lower, which sometimes makes them a great option for those looking to save money. However, they are still not the right fit for everyone due to the challenges associated with fire damage. There are a few factors you should consider before purchasing a home that was damaged in a fire. In an excusive interview with House Digest, Ryan Fitzgerald, real estate expert and owner of Raleigh Realty, says that you must consider things like health risks, renovation costs, and the extent of the damage.

Thinking about purchasing a fire damaged home and reselling the property after fixing it up? Fitzgerald explained that there are a few other aspects you must keep in mind. "If that is the case, then they should check insurance coverage, financing options, and the property's resale potential to ensure it aligns with your budget and long-term goals," he shared. Purchasing a fire damaged home is a risky move, so consider following Fitzgerald's advice to help make an informed decision on whether it's the right choice for you.

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 search beyond the damage that is immediately visible. "Most fire damage will be obvious, but if you are thinking of purchasing a home that has been damaged by a fire then you need to make sure you assess the extent of the damage, including structural integrity and hidden issues like compromised wiring, plumbing, or insulation," the expert said when speaking exclusively to House Digest.

He also recommends calling on a professional to help 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 whether the home is even safe to live in. "Things you need to consider include smoke, soot, and water damage from firefighting efforts," Fitzgerald said.

A thorough safety evaluation should be a priority to avoid the health risks associated with living in a fire damaged home. Fitzgerald explained that this includes hazardous odors and toxins. The final aspects the real estate expert recommends taking into consideration are your renovation budget whether you plan to sell the property.

Evaluating the pros and cons of purchasing a fire damaged home will also help you make the right decision based on your unique needs. Speaking exclusively to House Digest, Fitzgerald shared his expert insight on the major 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 perk of these homes is that there is typically less competition among potential buyers, which means you would have more negotiating power.

As for the cons, fire damaged homes obviously come with higher renovation costs, according to Fitzgerald. The expert revealed that you might also have a tough time insuring or financing the property due to the liability. With this in mind, some fire damaged homes just aren't worth the investment. Luckily, Fitzgerald shared some warning signs that let you know to avoid a particular property altogether. "If you are thinking of buying a fire-damaged home, then I would be very cautious if you note that the property's structural integrity is compromised," he explained. "By this I mean things like cracked foundations, warped load-bearing walls or sagging roofs."

In these cases, you'd be doing a lot more than just wiping down walls to remove soot. There may be severe core damage that is incredibly costly to repair. Fitzgerald warned that significant smoke, soot, electrical, plumbing, or HVAC system damage is also something to look out for. When it comes time to repair the home, the real estate expert recommends hiring a professional to guide you through the process.