How To Sell A House With Fire Damage?

Do you have a fire-damaged home for sale?  It’s a tough situation, especially after spending years and money on your beloved property. This article will provide you with practical advice to assist you through the process of selling your house under this condition. This isn’t just about transactions; we’ll focus on clear steps and solutions to turn this unexpected and overwhelming scenario into something advantageous.

selling fire damaged house

Table of Contents

Immediate Action After a House Fire

Experiencing a house fire implies being emotionally upset and also concerned about financial implications. Don’t worry, there’s a solution and it’s crucial to take certain immediate actions following the incident.

  • After getting clearance, open windows to vent smoke. Remove all items from your refrigerator and freezer once the power is disconnected as well.
  • Only re-enter your home once the fire department has confirmed it’s safe.
  • If you need temporary housing, food, medication, or even emotional support that you can’t seem to get anywhere, contact organizations local disaster relief services. 
  • Contact your utility companies to inform them of the fire and request emergency shut-off services to ensure safety.
  • Reach out to your insurance provider promptly to start the claims process. They will guide you on the necessary steps for financial recovery.
  • Take photographs and detailed notes of the damage. Also, obtain an official report from the fire marshal or fire investigator. Both of these will be important for your insurance claim.

Selling a House With Fire Damage in As-Is Condition For Cash

If you have a fire damaged home and the thought of repairs feels like too much, selling it in ‘as-is’ condition might be a suitable option for you.  It’s important to understand this effective approach:

  • Going through regular estate agents translates to commissions and fees, in addition to the repairs’ costs.
  • Cash buyers understand homes with fire damage and can buy your house as it is, without needing loans or mortgages.
  • By selling your home just as-is, depending on the damage level, the offer might be lower, but it also means less hassle for you.
  • Companies that buy homes for cash, like We Buy Houses, can inspect your home quickly and make a fair offer. 
  • If the fire damage in your home is not too severe, selling as-is is a great choice. It’s also a good option if you’ve received insurance money for the fire damage.
  • By selling to a cash buyer, you’ll avoid the stress of repairs and enjoy a faster, simpler selling process. 

Now you know, if you’re looking for an easy way to move forward and leave this all behind, selling as-is is the simplest approach.

5 Steps to Selling a House With Fire Damage

There have been burned homes for sale in the Bay Area of California before, and they’ve actually been sold for very good prices with multiple offers, thanks to this area’s competitive market. Here are 5 steps to selling a house with fire damage for you to feel more secure and less concerned:

  1. Call Your Insurance: First, let your insurance company know about the fire. They’ll check the damage.
  2. Get a Professional Check: Have experts inspect your home to see all the fire damage. This helps you know exactly what needs fixing.
  3. To Fix or Not to Fix: You can choose to repair your home before selling, which could give you a higher price but with higher costs embedded, or sell it as it is, which is quicker.
  4. Be Honest with Buyers: It’s important to tell buyers about the fire and any damage. It’s not only morally correct but a legal obligation.
  5. How to Sell:
    1. Sell to Us. We’ll buy your fire damaged home under any condition or reason, without the need to go through repairs and listings.
    2. Use a Realtor. If you fix up your home, a realtor can help you sell it, but remember, this takes time and money for repairs and fees.

What to Do Before Selling a House With Fire Damage

In simple terms, this is what you should do before putting your fire damaged home for sale:

  • Know Your Options: You can sell your house through a realtor and go through several inspections, open houses, negotiations and fees; or consider selling your fire-damaged house to us and you won’t have to worry about repairs or unexpected costs.
  • Gather Essential Documents: Before you put your fire-damaged home on the market, gather all relevant documents, such as insurance claims, police reports, and records of any repairs you’ve made. 
  • Maintain Detailed Records: Regardless of whether you plan to sell your home “as-is” or after repairs, maintaining meticulous records from the beginning is essential. This includes:
    • The fire department’s confirmation of your home’s safety.
    • Reports from the fire marshal or investigator.
    • Notifications to utility providers and service shutdowns.
    • Ventilation of smoke by opening windows.
    • Initiating the claims process with your homeowners insurance.
    • Assessments and estimates from fire restoration professionals.
    • Comprehensive documentation of the damage through photos, videos, and notes.

Who Buys Fire Damaged Houses

To make a decision on what path your sale will be going, consider your priorities, such as speed, repair costs, and financial goals. The ones who buy fire damaged houses are:

  • Investors: They may see your property as a project to work on or a wise investment. Regardless of the extent of damage, investors are often interested.
  • Cash Home Buyers: Companies like We Buy Houses purchase fire-damaged properties for cash. Selling to cash home buyers is faster than repairing the damage and working with a realtor. Plus, you avoid fees and commissions.
  • Auctions Buyers: Auctions can attract competitive buyers, potentially increasing your selling price. However, keep in mind that the final bid might be lower than expected, and there could be associated fees.
  • Private Buyers: Some private buyers are interested in purchasing fire-damaged houses, either as investments or to restore as their homes. Finding the right buyer may take time though, but it can be a viable option.

How to Sell a Fire Damaged House?

To sell a fire damaged house you’ll need to start by assessing the damage. This will help you understand the condition of your home and its market value. Hire a professional home inspector. Then, decide whether you want to make repairs or not. Remember that repairs can make your property more attractive to buyers, but they are time-consuming and costly.

When all of that is settled, explore your options, such as selling to real estate investors, cash home buyers, at auction, or to private buyers. Choose the one that aligns with your goals.

Do You Have to Disclose Fire Damage When Selling a House?

Yes, in most cases, you are legally obligated to disclose any fire damage to the house when selling it. This requirement varies depending on your specific location, so it’s crucial to understand the laws in your region to avoid any legal repercussions.

Most jurisdictions have “duty of good faith” or “material disclosure” laws, as is the case in California. These laws require sellers to reveal any known issues that could materially affect a buyer’s decision to purchase the property. Fire damage typically falls under this category.

If you fail to disclose fire damage and the buyer finds out later, they could sue you for fraud or misrepresentation. This could lead to financial penalties, forced repairs, and even the rescission of the sale.

Can You Sell Fire Damaged House Materials or Contents?

The answer is yes, you can sell items like appliances, fixtures, furniture, and building materials that are in good condition despite the fire. People often look for bargains on these items. Before selling anything, ensure that the materials or contents are safe and not hazardous. Remove any items that may pose health risks.

What Happens to Property Values After a Fire?

You may wonder what happens to property values after a fire. In most cases, a fire leads to a decrease in property values. Buyers may be hesitant due to the potential for hidden damage or safety concerns.

The location of your property also plays a role. In desirable areas, property values may be less affected, but in less sought-after areas, the impact can be more significant. Moreover, neighboring properties can influence value. If nearby homes are well-maintained, it may help mitigate the decrease in value.

What Price Do Fire Damaged Houses Sell For?

Several factors significantly influence the final sale price of a fire-damaged house, so it’s impossible to have one answer that fits all unique scenarios. It depends on the location, market, etc. Nevertheless, the extent of damage can give you an idea of how much the price will drop:

  • Minor damage: A contained fire with minimal cosmetic damage like singed siding or smoke odor might see a price reduction of 5-10% compared to undamaged similar houses.
  • Moderate damage: More extensive damage affecting roofs, walls, or electrical systems could lead to a 15-30% price drop.
  • Major damage: Structural instability, compromised major systems, or extensive smoke and soot contamination significantly lowers the value, potentially by 50% or more.

What’s The Process For Selling a Fire Damaged House at Auction?

Auctioning your fire-damaged house can offer certainty in terms of sale date and the possibility of competitive bidding. However, it’s important to weigh this against the potential for lower sale prices and auction fees. If speed and simplicity are your priorities, a direct cash offer might be a better fit.

The auction works this way:

  1. Selecting an auctioneer.
  2. Your auctioneer will set a date for the auction and begin marketing your property to attract potential buyers. This includes advertising in various channels to ensure a good turnout.
  3. You and the auctioneer will decide on a reserve price, which is the minimum amount you’re willing to accept for the house. 
  4. On auction day, interested buyers will place their bids. The competitive nature of the auction can sometimes drive the price up, but it’s important to remember that the final bid might be lower than your initial expectations.
  5. The winning bidder will pay for the property, and you’ll complete the necessary paperwork to transfer ownership.
  6. You’ll receive the proceeds minus any auctioneer fees. If it doesn’t meet the reserve price, you can consider other options, like a direct sale to a buyer.

Will Insurance Cover The Repairs For a Fire-Damaged House Before Selling?

Insurance coverage for repairs on a fire-damaged house depends on your policy details. Generally, if you have homeowners insurance that includes fire damage, it should cover the cost of repairs. However, it’s important to check your specific policy and speak with your insurance provider to understand what is covered and any limitations or conditions that apply.

  • Covered perils: Review your homeowner’s insurance policy to see if fire damage is explicitly covered. Most policies do, but some might exclude arson or negligence-related fires.
  • Dwelling coverage: This section specifies the amount your insurance will cover for repairs or rebuilding your home. The maximum payout might not be enough to cover all repairs depending on the damage extent.
  • Additional living expenses: Some policies offer coverage for temporary living expenses while your house is being repaired. This can be helpful if you need to move out while repairs are ongoing.

In Conclusion: Choose Us to Sell Your Fire-Damaged Houses, Where Our Exceptional Services Set Us Apart

In this difficult situation, where you’re stuck with a property that’s not only useless to you but also difficult to dispose of due to fire damage, we recommend seizing any opportunity to alleviate your stress. Choose our fast and easy process. Receive a cash offer based on our market’s knowledge and experience in purchasing fire damaged homes all over the Bay Area, get your investment’s profit and that’s it! NThere’s no need for repairs, cleaning, extensive negotiations, or stress. And all this comes without any fees or hidden costs. You can read reviews on We Buy Houses cash reviews.


Yes, you can absolutely sell a house that has been damaged by fire, but certain factors will influence the process and its success. The extent of the damage, repairs made, and market conditions all play a role.

Fire damage typically reduces a property’s value. The extent of the damage, its impact on structural integrity, and the cost of necessary repairs determine how much the value decreases.

Yes, you are legally required to disclose fire damage when selling your house. Transparency about the property’s condition is essential and helps avoid legal issues later.

Yes, making repairs to a fire-damaged house before selling can increase its value and attract more buyers. However, consider the repair costs versus the potential increase in sale price. 

Selling a fire-damaged house typically involves contacting your insurance company, assessing the damage, deciding on repairs, disclosing the damage to potential buyers and start negotiation with them. All depends on what type of buyer you’re selling to.

Yes, there are specific buyers and investors who specialize in purchasing fire-damaged properties. These are often investors looking for properties to renovate and resell or rent.

Fire damage can both shorten and lengthen the selling timeline. Selling ‘as-is’ to an investor might be quicker, but if you choose to repair the damage first, it will take longer to prepare the property for sale.

Yes, you can sell a fire-damaged house at a lower price. This is often necessary to account for the cost of repairs and the reduced market appeal due to the damage. Pricing it lower can also attract more investors or buyers looking for a project.

Shavi A
Shavi A
I have to say this company exceeded my expectations in every aspect. What stood out for me was their commitment to a hassle-free home-selling experience. The absence of agent fees, inspections, and repairs made a significant difference, both in terms of time and money. The process was quick, and I received immediate cash for my home. Their local expertise was evident, and they handled my unique situation with flexibility and understanding. Selling with them was a wise choice, and I can confidently recommend their services.
Pam Weingarten
Pam Weingarten
Eugene was a pleasure to work with during this stressful process. He was very clear on home value and what could be offered. While I did not complete the sale with Eugene due to other circumstances, the whole process was seamless and easy. I would highly recommend Eugene for anyone considering selling their home as is or in need of a quick move.
Jamie Angus
Jamie Angus
Like many customers, I don’t really leave reviews. If I enjoyed their service, I’ll keep that in mind when I refer them to friends or other people I know. Eugene and his team really exceeded my expectations. They broke down what it took to sell my Bay Area house quickly and made me a deal I was beyond comfortable with when it came to moving to another location. I would highly recommend Eugene and his team for anyone or their family when looking for a great cash deal for their home.
Whenever I refer clients to Eugene of We Buy Houses in the Bay Area they always give me a call after working with him and they always have something positive to say. I can see how hard he works to make sure that his clients are completely satisfied. He has helped so many people escape some terrible situations and they love him for it. I will continue to work alongside him and make sure to send clients his way within the Bay Area, it is the least that he deserves 🙂
Ben Brown
Ben Brown
If you’re looking to sell your home without the stress of realtors and inspections, call Eugene Romberg. He was ethical in his approach and impressed me with how professional he was. Don’t delay, call Eugene and he will help you like how he has helped me and my family.
I was very impressed with the work that Eugene did for my home. He isn’t pushy and I actually liked how he educated me through the whole process. Unlike other home buyers, Eugene actually wants you to talk to a realtor and have multiple options ready. I was 100% percent comfortable with working with him.
Eugene and his team created an amazing experience for me and my family. He was totally honest and made sure we understood every step of his process. I am more than thankful to work with him to sell my Bay Area home.
Jose Gutierrez
Jose Gutierrez
Eugene really helped with the renovation process of our former home, not only that but he gave me a great cash offer on my house in San Jose.