Are you in the market for a new home but are a little short on cash? Maybe you and your partner or family enjoy purchasing homes together and flipping them to make a profit? Perhaps you want to build a house but are having trouble finding a suitable location? If any of these issues sound familiar to you, then if you have never considered buying a fire damaged home, now might be the time. Homes that have encountered fire damage can sometimes still be quite livable but often cost a fraction of the price. However, there are some inherent pitfalls involved with buying a fire-damaged home. This article will seek to outline several different things that you should always consider before buying a fire-damaged home. By keeping these key considerations in mind, you will be able to better assess the state of any fire-damaged home before purchasing it, and allow you to save your money for the right moment.
Location
They say that location is king in the real estate world, and this fact rings extra true when you consider fire damaged homes. If you are looking to demolish and rebuild after purchasing a fire-damaged home, then you should always consider the location above everything else. You want to consider things like the property size, surrounding accommodations, and the general neighborhood before committing to anything.
Inspection
When purchasing or considering purchasing any type of home, it is always important to include lots of inspections in the process, to get a realistic picture of the fire-damaged home you are considering buying. This will allow you to make a more informed decision about the house and see if it is truly a good investment or not. Experts recommend that you make all the checks necessary to assure yourself that the home is both safe and appropriate for your needs. You can not put a price on the health and safety of you, your family, and whoever else will be working or living in the house over time. Be sure to do your due diligence and get a licensed inspector to look at your home before purchasing it.
Cost
The main concern when purchasing a fire damaged home or really anything in life is always the cost. Unless you have money to burn, then you probably want to pay as little as possible for a fire-damaged home. Always be sure to consider how fairly priced your home is, especially if it looks to be seriously damaged. You do not want to pay full price for a home that is not worth the full price. Do some research and see what the housing market is in the area. This will help you to get a clearer idea of the number of other costs which you will incur during the process of fixing up the house. After going over your available finances to figure out how much you can afford, you might be wishing that you had a little bit more to get you to where you want to be. Luckily, there is such a thing as a fix and flip loan which will be able to help you out so you are not left in the lurch.
Smoke Damage
A fire damaged home will usually have some form of smoke damage as well, so it is important to consider this when purchasing one of these homes. Even if the structural damage is not that bad, smoke damage can be incredibly expensive to repair and can cut into your budget substantially.
Structural Damage
Structural damage from fires can sometimes be mild, and in other cases, it can be catastrophic in a fire damaged home. If your home was severely burnt during the fire, then there is a good chance that you will need to make some structural repairs before any other work is done on the home. This is to ensure that everything is safe for workers and also so that you do not need to redo any small projects when putting in something like load-bearing support.
Budget
When making any purchase, you should always make a budget beforehand to see what you can afford to spend. This will give you a much clearer idea of the types of the home which you can consider purchasing. You should always factor in any additional costs, such as repair for structural or smoke damage, as mentioned in the previous paragraphs.
Hopefully, this article has been helpful and informative regarding the different things that you should always keep in mind when considering purchasing a fire damaged home. If you are an inexperienced home flipper or someone who has never repaired or dealt with a fire-damaged home, then you would be well advised to make sure you are informed on the subject before attempting any jobs or purchases. By trusting in professional assessments and opinions, and using your own critical thinking process, then you should be able to find a fire-damaged home which will be suitable for whatever your needs are.