Selling a fire damaged property: a guide

Selling a property after a fire can feel particularly challenging, especially if the damage is extensive, the house is no longer habitable, or it has caused emotional distress and you just want out quickly. But a fire damaged property can still be sold. 

The important thing is to understand how the damage affects the property’s value, whether repairs are worthwhile and which selling route is likely to work best for your circumstances.

What counts as a fire-damaged property?

A fire-damaged property is any home that’s suffered damage as a result of a fire – the extent of the damage can vary considerably.

In some cases, the damage might be relatively localised, such as smoke damage to one room, while the rest of the property is in a perfectly normal condition. More serious fires, however, can affect the structure and integrity of the building, roof, electrics, plumbing, windows and internal fixtures and fittings.

Fire damage can also leave behind less visible problems: smoke and soot can affect walls, ceilings and ventilation systems, and the water that was used to extinguish the fire can cause additional damage, including damp and structural problems.

Do you have to disclose fire damage when selling?

Yes, you should be open about significant fire damage when selling your property.

When selling in England and Wales, you will normally complete a TA6 Property Information Form as part of the conveyancing process. You should provide accurate information about known issues with the property, which includes fire damage. Trying to conceal a serious problem can cause complications later in the transaction and may leave you vulnerable to a claim if information provided to the buyer is inaccurate.

Also, repairing the property doesn’t mean that the fire becomes irrelevant. Your solicitor can advise you on what needs to be disclosed and how the questions on the property information forms should be answered. Being upfront is usually the safest approach. 

How does fire damage affect property value?

Fire damage can have a major impact on the value of a property, but there’s no set amount or percentage as the damage will differ wildly from one fire-damaged house to the next.

The impact will depend on factors such as the severity and location of the fire, whether the property is still structurally sound, whether it’s even habitable, and of course the estimated cost of putting it right. The local property market and availability of buyers will also have an impact, as with the value of any property.

A badly damaged property may be difficult for a conventional (i.e. mortgaged) buyer to purchase because surveyors and lenders may have concerns about its condition. This can significantly reduce the number of potential buyers for you to sell to.

For a realistic assessment, you should get two valuations: one based on the property’s current condition and another based on its likely value once any necessary repairs have been completed. You can then compare the potential sale price with the cost, time and inconvenience involved in having the work done.

Does house insurance cover fire damage?

Buildings insurance often covers fire damage, but the exact protection depends on the terms and conditions of your policy, so you should check the details of your agreement.

If your property has suffered a fire, contact your insurer as soon as possible and check what your policy covers before you commit to any major repairs. Buildings insurance generally relates to the structure of the property, while contents insurance covers belongings and possessions, although individual policies will vary. 

If you do make an insurance claim, keep records of correspondence, assessments, photographs, repair estimates and any other relevant documentation, as this may come in handy during the sale process. Your solicitor should also know about any ongoing claim before you proceed with a sale.

Should you repair fire damage before selling?

This comes down to the extent of the damage, your financial position and how quickly you want to sell, as well as, to a certain degree, your personal inclination.

It’s worth getting quotes for the necessary work and comparing the likely post-repair value with the cost of the repairs. You’ll need to consider not just the construction work itself, but also professional fees, insurance, temporary accommodation and the time and inconvenience involved.

Selling a fire damaged property as-is

Selling the property as-is, without carrying out all the necessary repairs, can be an attractive option if you don’t want to take on a major renovation project or you need to sell quickly. The downside is that you’ll receive less than you would for a fully repaired property.

You’ll also have a smaller pool of potential buyers. However, specialist property investors and cash buyers are often happy to buy properties that require substantial work.

Selling a fire damaged property after repairs

Repairing the property before selling it can make it more appealing to conventional buyers – and potentially increase the eventual sale price. Unfortunately, major fire restoration can take considerable time and money, and there’s no guarantee that the additional value will cover the costs of the works.

Discuss your plans with your insurer before starting any repairs, and keep hold of the paperwork, including relevant building, electrical and other certification, as this may be needed when the property’s eventually sold. 

How to sell a fire damaged property

Once you’ve established the condition and value of the property, there are a few ways you can sell it.

Sell through an estate agent

An estate agent can showcase the property to potential buyers on the open market – this may be the most appropriate way if the damage is relatively minor or you have already completed the necessary repairs. Find out what you should ask your estate agent before appointing one.

The drawback is that a fire-damaged property can take longer to sell, particularly if prospective buyers need a mortgage or are concerned about the building’s condition.

Sell at auction

Property auctions can provide a route to selling a fire damaged house to investors and buyers who’re looking for renovation projects. An auction can create a defined timetable and may attract buyers who are comfortable taking on substantial work. But there are costs that you’ll need to consider and there’s no absolute guarantee that the property will achieve the price you want, or that it will even sell.

Before going to auction, discuss the property’s condition with the auctioneer and make sure the guide price reflects its condition.

Sell to a cash house buyer

A cash house buyer is a good option if your priority is to sell the property quickly without carrying out extensive repairs. This can be particularly useful if your property is uninhabitable or requires significant restoration. We’ll buy your house in any condition, and because we use our own money, we don’t need to rely on a mortgage (or any other financing) to fund the purchase. 

Sell your fire damaged property fast with House Buyer Bureau

If you have a fire damaged property that you would rather sell than restore, House Buyer Bureau may be able to help.

We specialise in buying properties quickly, including homes that may be difficult to sell through the traditional market. You don’t need to complete any repairs or renovations before selling, so you can avoid the time, disruption and uncertainty involved in bringing a seriously damaged property to the market.

We’ve been buying property since 2010 and are members of The Property Ombudsman and a founding member of the NAPB.

If you’d like to explore selling your fire damaged property, contact House Buyer Bureau to discuss your circumstances and find out more about your options.