Fire damage cleanup costs vary depending on the extent of damage caused by a fire as well as the water used to extinguish it.
The following guide discusses how to estimate fire damage costs, the various costs associated with fixing and rebuilding a fire-damaged home, the fire restoration process and cost, and whether you should sell the house as is or rebuild it.
Find out the full details on how much it costs to repair fire damage in the sections below.
How Much Does It Cost to Repair a Fire-Damaged House?
If you’re considering fixing your fire-damaged home, it’s likely that the damage is not critical. Most often, the residential fire restoration cost ranges between $5,000 and $20,000.
To find out how much it costs to fix a fire-damaged house, consider the following factors:
- The scope of damage: There are several damage types associated with fire, including smoke and soot damage, structural damage, where crucial components such as walls, beams, and wiring systems are affected, and water damage from extinguishers. Fixing structural damage is the most expensive with costs ranging between $4,000 to $50,000. Smoke/soot damage repair costs about $500 to $5,000, while water damage restoration is $2,000 to $6,000.
- Location: The national average for fire damage restoration cost per square foot is $4-$6.50, but actual costs vary from state to state. For instance, the average cost in California is $10 per square foot.
- Fire category: House fires have different categories, including Classes A, B, C, and K. Class A fires are caused by combustibles such as wood and paper, and restoration costs between $8,000-$14,000. Class C and K are fires caused by electrical faults and burning oils, respectively. They are the most expensive to repair with costs ranging from $10,000 to $20,000. Class B fires are caused by flammable liquids like kerosene and alcohol and cost up to $18,000 to repair.
- Labor charges: There are numerous labor costs associated with fire damage restoration, including inspection and appraisal fees, local authority fees, and general property repair costs. Inspection costs $300-$600, while appraisal fees range between $300-$900. Local authority, labor, and material costs vary by location.
- Your homeowners’ insurance coverage: Check your insurance policy to find out which fire damage restoration costs are covered.
Besdes these expenses, you will also have to spend time on overseeing repairs. Here is how long it takes to rebuild a house after a fire.
How Much Does It Cost to Rebuild a House After a Fire?
Homes that have been critically damaged by a fire may require a total rebuild of the property.
The cost of rebuilding after a fire can vary widely from $50 per square foot for partial rebuilds (one room) to $150 per square foot for the entire house.
Other factors that affect rebuilding costs include the property location, building materials, local construction costs, and permits and inspection fees.
To get an accurate estimate, contact a professional fire damage assessor and a damage inspector.
Homeowners should consider rebuilding in the following circumstances:
- The walls, beams, and/or foundation have been severely damaged by the fire.
- Smoke and soot have penetrated the walls, ceiling, and internal structures.
- Water from extinguishers has seeped into crucial components, including walls, beams, ceiling, and floor, leading to serious mold growth.
- A trained fire damage assessor advises you to rebuild.
Should You Repair or Sell a Fire-Damaged House As Is?
Now that you know how much it costs to fix a fire-damaged house, the next step is to decide on what to do after a house fire — repair/rebuild the home or sell it as is.
For many homeowners, selling a fire-damaged property as is is the best option, since it significantly saves time and money.
Fire damage restoration takes months to complete, consumes tens of thousands of dollars, and even more to rebuild.
Most home buyers avoid fire-damaged properties. But there is one category of buyers who look specifically for homes needing extensive repairs — real estate investors.
How to Sell a Fire-Damaged House As Is
To sell a fire-damaged house as is, determine a suitable selling price in the following ways:
- Use the MAO (Maximum Allowable Offer) Formula to determine the highest offer amount investors can make for the property. The amount should be your asking price for the home.
- Hire a real estate agent for a BPO (Broker Price Opinion).
Here is more detail on how to price a fire-damaged house.
Once you’ve estimated a suitable price for the fire-damaged property, find real estate investors who specialize in this type of deal.
Investors are the perfect solution for homeowners who want to sell their fire-damaged properties as is.
They are also often called “cash house buyers” because they use cash instead of a mortgage to buy properties. This allows them to buy houses faster than traditional real estate transactions.
Note: You have to disclose a fire when selling a house that has suffered fire damage, even if the damage was small, already repaired, or you know that an investor won’t mind it.
Some benefits of selling to these cash house buyers include:
- Cash buyer transactions are convenient, with fewer bureaucratic processes.
- You can avoid high realtor commission fees, as you don’t need an agent when working with a professional investor.
- Appraisals and inspections required by mortgage lenders won’t apply to a cash-financed deal. This means weeks of saved time.
- Cash investors cover all closing costs.
- You can sell the property as is without wasting time and money on repairs, or assessing what needs to be replaced after a house fire.
Still, you have to find reliable cash house buyers, as many investors prefer homes with minor damage. And, like in any industry, there are people who don’t act ethically.
One of the best ways to find ethical cash buyers is to request a cash offer from investors through our website.
Our platform has a nationwide network of investors who specialize in purchasing fire-damaged homes.
By requesting a cash offer on our website, you will receive up to five offers from local investors in your region. Provided with several options, you can choose the best deal.
Even though selling to an investor for cash is the easiest way, there are others. Learn more about them from our guide on how to sell a house after a fire.
