Selling a house after a fire
After a fire, the first calls are about safety and insurance. The decision about selling can come once you know what the policy covers.
No obligation. No pressure. Takes about 2 minutes.
The short answer
Start with safety and your insurer: stay out until the fire department says the house is safe, call your insurance company right away, and let your mortgage lender know about the fire. Once you know what the policy will pay and what repairs will cost, you can rebuild and then sell, or sell the house as it is. The better choice depends on the payout, the repair bids and how long you can carry the house.
Step by step
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1
Make it safe and secure
The U.S. Fire Administration says not to enter until the fire department says it's safe, and not to turn utilities back on yourself if firefighters shut them off. Let the police know the house will be empty, and board up windows and doors if needed.
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2
Open the claim and keep records
Call your insurance company right away and ask what to do to protect the house until it's repaired and who should handle cleanup. Contact your mortgage lender, keep the fire incident report number, and save every receipt for money you spend; the USFA notes you may need them for the insurer and for your tax return.
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3
Get repair bids before deciding
The USFA notes that smoke, and the water used to put out the fire, can ruin things the flames never touched. Written bids for the full repair show you what the house needs and whether the insurance payout covers it.
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4
Compare rebuilding with selling as it is
Rebuilding and listing can bring a higher price if the payout covers the work and you can wait. Selling as it is can make sense when the gap is large or you need to move on. Ask your insurer and lender how a sale fits with the claim before you sign anything.
Sources: U.S. Fire Administration: After the Fire (FA-46) ยท U.S. Fire Administration: Helping Community Residents After a Home Fire
This page shares general recovery guidance from the U.S. Fire Administration. It isn't legal, insurance or tax advice. Talk to your insurer, an attorney or a tax professional about your own situation.
Cash offer vs listing
Example: a $250,000 home
| Offer | $205,000 |
|---|---|
| Repairs | $0 |
| Commissions | $0 |
| Closing costs | $0 |
| You walk away with | $205,000 |
| In 7 to 14 days | |
| Sale price | $250,000 |
|---|---|
| Repairs | about $8,000 |
| Commissions | about $13,800 |
| Closing and holding | about $6,000 |
| You walk away with | about $222,200 |
| In 60 to 90 days | |
Example only. Your numbers depend on your home and market.
Once you know the payout and the repair bids, we'll put a cash offer beside what listing a rebuilt house could net, so you can see the difference plainly.
Frequently asked questions
Can I sell before the insurance claim is settled?
Ask your insurance company and your mortgage lender first, so you understand how a sale fits with the claim and the payout. Get their answers in writing before you sign a contract.
What if the house wasn't insured?
The U.S. Fire Administration suggests contacting community groups for help, such as the American Red Cross, the Salvation Army, religious organizations, public agencies and your state or local emergency services office.
Is there any tax help after a fire?
The USFA suggests checking with an accountant or the IRS about special benefits for people recovering from a fire loss, and keeping receipts to support any loss you claim.
Who are you?
We are real estate investors based in Baltimore, helping homeowners since 2016. We buy houses directly for cash. We are not a licensed real estate brokerage and do not list homes ourselves; if listing could get you more, we show you the math so you can choose.