what to approach/ do for fire damage property?

8 Replies

Recently, there's property got fired partial of the house. I talk to the owner right away, Owner said he don't even know do he has the right to sell the house right now or not because he is dealing with homeowner insurance. 

Do any one have experience deal with fire damage property? who should i talk to ? do i have to wait for insurance compensation process done? And what else?

[email protected]!!!!

@Nguyen Quach

Yes, in order for the seller to know how much he'd be willing to sell for, he has to first know how much his insurance will pay. 

And depending on how he deals with them (whether he tries to handle the claim himself, or hire a Public Adjuster, which I recommend), settlement amount can range drastically.

Depending on the extensiveness of the damage, most of the time, Public Adjusters are looking out for the insured's best interest, since they work on a percentage of the proceeds, so they'll point things that need to be remedied to the insurance company, that the homeowner will have no clue about. (If it's a small claim, like $10,000, the PA probably won't spend too much time putting together a thorough scope of work.)

- Ask the owner if they have a PA. If they don't have one, why not?

- Are they willing to be displaced for however long it takes to renovate the property? Even if the house is habitable and the smell is contained, how long are they willing to live in that condition?

- If the settlement amount, plus what they can walk away with at the closing table is to their liking, would they consider selling? 

- If they're leaning towards fixing it up, ask them if they know reputable Fire Damage Restoration companies, that also renovate. (Most restoration companies don't renovate because margins are much lower renovating. So the owner may end up having improper restoration work done, doesn't smoke seal necessary areas properly, then when a renovation company comes in and finishes the work, come next hot summer season, the smell of smoke comes back). 

- If they look like they might consider selling, you have to start looking for restoration companies that also renovate who guarantee their work so you can figure out the cost. 

@Johnny Kang the property value over 500k, and i believe the repair cost at least 100k. that all i know. right now, owner already moved, and i don't see them again. I will try to look for their contact number. do you have any way to find out personal number? Thankyou for your information. 

@Nguyen Quach

Yeah, with $100,000 damage they can't stay in their house, but it doesn't necessarily mean they've moved since the incident took place recently. Probably either staying with family or hotel, reimbursed from their future insurance proceeds.  

I have a VA who skip traces for me, but I do it in bulk. For one offs, you can contact @Joseph ODonovan & see if he can find a few phone #s. 

Also try sending letters to both property & mailing addresses.

@Nguyen Quach

When you say no response, how did you try to reach him?

Also, keep in mind, it's a numbers game, so can't expect to get something going with 1, or a few prospects.

When I started targeting this niche, I was compiling 80-100 leads on fire damaged properties in NYC every month. Having lots of prospects puts you in a very different position.