Selling a Fire-Damaged House in Milwaukee

If you've just had a fire, your safety and your family come first. Before thinking about a sale, the usual early steps are:

• Don't re-enter the home until the fire department says it's safe.
• Contact your insurance company to open a claim and ask about temporary living expenses.
• Secure the property — boarding windows and doors helps prevent further damage and trespassing. Insurers and municipalities often expect this.
• Notify your mortgage company; most mortgages require you to report major damage.
• Photograph damage and keep receipts for every expense.

The American Red Cross and local relief organizations can also help with immediate needs after a home fire.

Once the immediate crisis has passed, owners usually face a choice. Rebuilding can make sense if insurance coverage is adequate, you want to stay, and you have the time and energy to manage contractors, permits and inspections. That process can take many months, and costs can exceed the claim, especially in older homes where repairs trigger code upgrades to wiring, plumbing or structure.

Selling as-is is often chosen when the owner doesn't want to go through a rebuild, has already found another place to live, is dealing with an estate or rental, or is worried about carrying costs on a home that can't be occupied. A fire-damaged house is generally very difficult to sell to a buyer using a regular mortgage, because lenders typically won't finance a home that isn't habitable. Cash buyers fill that gap.

How your insurance claim and a sale work together depends entirely on your policy and the stage of the claim. Some general things owners commonly ask about:

• Who gets claim payments? Payments for the building are often issued to both the owner and the mortgage lender. Payments for contents and living expenses are usually the owner's.
• Selling mid-claim. Many policies let you continue a claim after selling, but the details matter. Ask your insurer in writing.
• Replacement cost vs. actual cash value. Some policies pay the full replacement amount only if you actually rebuild. Selling instead may change what you receive.
• Getting help. Some owners hire a licensed public adjuster or an attorney for large or disputed claims.

We're not insurance advisors, and we won't pressure you to sign before you understand your claim. Our written offer gives you a concrete number to compare against rebuilding.

In the City of Milwaukee and surrounding municipalities, a seriously damaged building may be posted as unfit to occupy, and the owner may receive orders to secure, repair or, in some cases, demolish the structure within a set time. Missing those deadlines can lead to fees or further enforcement. If you've received orders, we can usually still buy the house — our code violations page explains how open orders are typically handled in a sale.

• We visit the property (from outside first, if it isn't safe to enter) and review any fire, insurance or city reports you have.
• We send a written as-is offer within 24 hours of the visit.
• No cleanup, debris removal, gutting or repairs needed before closing.
• A local title company pays off the mortgage and liens from the proceeds.
• You choose the closing date, commonly 7–14 days or later.

Also dealing with other repairs or a missed payment? See selling a house that needs repairs and our foreclosure help page.