I lost one to a fire and won't have enough to rebuild because I had it under insured and didn't realize it. I have a basement and the frame and that's about it. I can level it for $9000 or sell it as

is. I've had a couple people that seemed interested in buying it and need some input on a selling price. Is the value essentially

When we lost one to fire, we sold it for the value of the lot. Then he talked to the City, got scared, and then came back wanting a price that was a third of the value of the lot. We sold it anyways, because the important thing was to have it be not-our-problem anymore, rather than squeezing the exact value of the parcel out.

It was the first time I'd been on that side of that kind of transaction. :P

It was a very decent 3/1.5, which we'd finished renovating maybe a year or two previously. It would have been about $60k to fix the damage and get rid of the smoke smell. We weren't interested in sinking another $60k into a house we'd already put $40k into, so we sold it to-- you guessed it-- a retired handyguy who was bored and looking for a project.

Steve,

Rebuilding after a fire costs more than expected.

BUT much less expensive than the insurance adjustor lists.

Sell it AS IS if you sell.

The land, attached utilities, and foundation have value. Check the tax assessor's value of the land, add for utils, add for foundation. Let the buyer worry about demo, permits, inspections, etc.

Any chance of building a smaller structure on that foundation?

PS

some DIY handyman investor (like Roy!) will snatch this up in a hot second.

I've purchased a few properties in this condition. Each time it was for far less than the seller initially thought they would get. FYI by right most cities & towns have to by right allow you to rebuild what existed even if it doesn't meet the current zoning. However there is a time limit on when you have to get your permit & all of the construction has to meet the current building codes.

Unless you're adequetely insured or able to do things for a lot less than most folks especially in light of today's sky rocketing lumber costs, I think any investor should think long & hard before deciding to rebuild.

Just had a triplex burn next to our quad. Fatalities. It sold "as is" for $240k, and they are apparently going to rebuild as they are carefully extracting stuff from the middle (burned) unit.

Rules are if property is more than 50% damaged it can't be rebuilt without bringing the entire thing up to code and zoning, too, and that area is no longer zoned for mult-family (despite having several in the neighborhood, including ours.)

These types of properties are ripe for auction. Put a reserve on it equal to land value + utilities.

I had a burn house a few years back. I only had about $18,000 in it after purchase ($14K) and basic remodel ($4K-paint, flooring, and a few odds 'n ends). Had it insured for $30K. After a second opinion on the loss, I got the full cash out value of the policy, then sold the lot + burn out for $8,000. The guy who bought it and fixed it up did a nice job. I drive by it occasionally since it is close to a couple of our other homes.

I've never purchased a fire house, but I've purchased several old mobile homes (1970's era)that have no value and what I pay is the bare lot value plus some of the value of the lot improvements, driveways, utilities installed (worth $15,000 or more), lot leveling....

Of course, I'm getting rental income, and once the mobile is in place, community development fees are considered to be paid and the the next builder doesn't have to pay them again, worth about $30,000. I've never had a seller consider that benefit so I haven't yet had to pay for it.

Basically, I pay improved lot price.

Great news for you.......any lead, asbestos, or other hazmat materials that would cost you an arm and a leg to remove before demo - they should be gone if what you have is a basement left.

If the fire department saved what ever was left - did they really help you?

The single biggest question isn't what you are asking though........did anyone get hurt in the fire?