Burned Out Property
I'm currently looking into a property which was referred to me. This property was actually in the foreclosure process and then was damaged by a fire.
I've never dealt with a property involved in a fire before but as I understand it's a totally different ball game.
This property is currently with the bank and has not yet been listed on the MLS.
Can anyone give me any info regarding bidding on burned out properties?
I know the mortgage company or bank must discout the property but by how much?
The property was sold in '93 for 150,000 what would be a good bid in this type of instance?
im just a novice but i could imagine there isnt enough info provided for anyone to tell you what a good bid is....
the market is probably much different now than it was in 1993...
also, the sq. footage/beds/bath all matter
you dont know if the property was baught at a discount for 150k originally
and the extent of the fire damage and to what parts of the house would matter as well
the only for sure way to tell would to get an estimate from a contractor, im guessing....
thats my $o.o2...good luck with all your future endeavors
~Andrew
Your statement about fire restoration being a different ball game is correct.
I have done a few of these but very few. There are companies that specialize in restoring these "burnouts".
I would contact one of them and have them give you an estimate.
There are plenty of chemicals out there that will take care of the smoke damage etc.......you just have to be careful with the structural issues and wiring.
Unless this is a bidding process.........you can bid low and always go "up"........
NC_Yank
Last burnout I saw had a pre-fire FMV of $40k (mostly due to its large corner lot), sold post-fire for $17k, it was gone the next day and replaced by a modular home--lot of them coming down from factories in Canada these days, 100 miles to the north--and was sold right away for, presumably, a nice but not huge profit. So the underlying land is sometimes all of value that's left. May be one way to proceed. Get some solid contractor estimates before you try to fix one up.