Selling with history

Selling a Home With a Fire, Insurance Claim, or Repair History in Chandler

Can you sell a home that had a fire or a big insurance claim?

Yes. Buyers at this price do not run from history. They run from surprises. A home with a repaired fire, a water claim, or a major repair can sell when the story is complete and the proof is on the table.

One Fulton Ranch seller with a fire in her home's history closed 31 days after contract. The house was in good shape. The history was the hurdle, so we made the history easy to check. You can read the whole story in how we sold a Fulton Ranch home with a fire in its history.

What will buyers ask to see?

Buyers ask the same three things: what happened, who fixed it, and can I see proof? In the Fulton Ranch sale, the buyers asked for repair invoices, photos of the work, and the insurance paperwork. They also asked for the City of Chandler permit records for the repairs.

Some repairs had been done by the seller herself. Those had photos and no invoices. Say that up front. It is better to explain a gap than to let the buyer find it.

Do I have to disclose it?

Disclose it. In the Fulton Ranch sale, the seller wrote the fire and repair history into the seller's disclosure in her own words and attached her insurance paperwork. Then the paper told the story, so she did not have to retell it to every buyer.

I am not an attorney, so ask yours about your exact duties. What I can tell you is that a written disclosure with proof attached ends a lot of questions before they start.

Which inspections should I expect?

Expect the buyer to want an outside professional to look at whatever the history touched. After a fire, that meant three checks: a structural engineer for the repaired area, a mold and air quality test, and a smoke residue assessment. In the Fulton Ranch counter offer, the seller agreed to pay for all three, capped at $2,200 combined.

The structural engineer found no evidence of structural distress in the framing, exterior wall, second floor, or roof trusses. The mold test came back at or below outdoor levels in all four interior sample locations. Good reports do more for a buyer's nerves than any sales pitch.

Every buyer is different. Plan on paperwork for each concern, and match the inspection to the history. A water claim gets a different look than a fire.

How do I keep the counter offer from turning into an argument?

Spell out what the word "testing" means. In the Fulton Ranch sale, the counter said the smoke residue testing would be done by a qualified company. We hired a qualified environmental firm to assess the home. The buyer's side wanted lab samples on top of that. Same sentence, two readings, and it cost us days.

Before anyone books a test, put three things in writing: the method, the company, and the report the buyer will receive. Then send every report and receipt to the buyer's agent as soon as you have it.

What should I do before I list?

Start the file now. Gather every receipt, insurance claim, inspection report, and permit record you can find. Call your insurance company and your contractors for copies while it is still easy. Then write the history into your disclosure and attach the paper.

I know that is a lot to ask. Reliving a fire or a loss that already cost a family so much is a real burden. The paper does the retelling for you. When you are ready, we walk through it together and build the file before the home goes live.

Ben Graham, luxury real estate advisor serving South Tempe and South Chandler. REALTOR since 2011 with more than 500 transactions, including homes in Fulton Ranch and Ocotillo.