Hi BP community-
I've been emailing people who've had recent fire damage to their homes, and have recently started talking to someone who's property is paid off, and the fire damage was estimated by the insurance company to be 145k.
After researching comps, I've estimated the ARV at 135k. This seems like it obviously isn't a deal, but speaking to those of you who are more experienced and/or more creative, is there something I could be missing?
Perhaps the insurance company overestimated repair costs?
Any insights/advice is greatly appreciated!
The insurance company priced out repairs based on their data base of licensed and insured contractors. If you are handy you could possibly do it for less but if the damage exceeded the coverage the insurance estimate could be too low. In my case the insurance company did not put much effort to establish repair cost once they were on the hook for the policy limit.
I have found in the past, especially when the property is free and clear.
That the owners are willing to just take the insurance money and move on.
So it might be worth giving them a low offer for the property as-is and then re-construction a new residence.
Thanks for your advice guys!
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing