Home Value After A Fire

Does a fire decrease the value of your home? The answer really depends on whether the home will be sold as is, or if the homeowner will be restoring the home to its pre-fire condition. Let’s look at some factors that can influence the value.

Full Restoration

If you've experienced a fire, working with a public adjuster, insurance professionals, contractors, and real estate experts can help you navigate the recovery process and make informed decisions about the value of your home.

The homeowner or seller may need to invest time and resources to bring the property back to a condition that aligns with market expectations.

Ultimately, if you can show proof of full remediation and the steps that were taken, most concerns will be eliminated. In the process of restoring a home after a fire, including repairs, replacements, renovations, and addressing any lingering issues, you can actually positively influence its value because with the restoration process comes new materials and can include aesthetic updates that are on trend with new styles that will entice a buyer.

What About Smoke Damage?

A professional cleaning company will perform a thorough assessment to determine if carpet, woodwork, drywall, or any other housing fixtures have been impacted by the fire. It is common for damaged housing fixtures to need to be replaced completely resulting in eliminating any residual smoke in the home.

Is The Home In A Fire Ravaged Market?

Even after repairs are made, there may be a perceived risk associated with a home that has had a fire incident. This perception could affect the resale value, as buyers may be hesitant to invest in a property with a history of fire damage.

According to GlobeSt, California wildfires do have an impact on home values. In the three years following the fires, home purchases decreased 38% in markets directly hit by a fire. In adjacent markets, meaning those that were near a fire, home purchases decreased 3%.

Can You Sell A House That Had A Fire Without Restoration?

Fire-damaged homes can either be sold as-is to real estate investors or listed with a realtor. Depending on your situation and how extensive the fire damage is, you'll need to weigh the pros and cons of each option.

 

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