Whether it is a flood, fire, or hurricane, a damaged home is never a convenient asset to manage. If you are living in the home, not only may you be out a place to reside, but you may also be in an economic downfall.

Depending on the severity of the damage, there are a couple of options to move forward with your home. In this article we will outline the basic first steps to take immediately following the disaster or accident, then provide options for what to do next.

After the initial incident, it is imperative that you take these first steps to ensure your safety and protect your finances.

1. Use caution when returning to the home – unexpected damages can cause harm.
2. File with your insurance company and determine if the house is covered. It is also recommended that you document your losses with photographs.
3. File with FEMA – Federal Emergency Management Agency.
4. Determine if your home is in a Special Flood Hazard area.

Once you have completed these four steps, it is time to determine the future of your home. Essentially, you have three options: to sell, to fix it up then sell, or to fix it up then move back in.  Each option has an array of variables that could impact your decision. Here are questions to consider to help you determine your best plan of action.

How Bad Is The Damage?

 You can take a look at the outside and see the superficial damage of the home, but the truth of the destruction comes within looking at the foundation and interior of the home. To get started, you will need to hire an inspector to assess the house – they will be able to complete a full evaluation of the damages.

 What Is the Financial Burden? Overhead and Profit Analysis

 Once you have had the home assessed, you will need to create a budget that will allow you to identify the most responsible financial option for your future. Consider the following expenses when creating your budget:

• Contractor Fees: Have all aspects of your home inspected and solicit quotes for repairs. Seek multiple quotes to determine the most affordable option. When calculating these expenses, be sure to include the taxes!
• Tree and Shrubbery Removal, if applicable: Insurance companies typically cap their coverage.
• Temporary Living Expenses
• Transportation Costs: Consider costs of driving from your temporary home to your damaged home to meet with contractors. Also include additional costs if your temporary home is further from your daily activities.

When developing your financial assessment, be sure to have an in-depth understanding of what your insurance company will cover. All companies are different and will outline different restrictions depending on the damages and causes.

Should You Sell Your Home Damaged?

After constructing the cost analysis of fixing your home, you are now in a better position to make an educated decision on how to proceed.

Option 1: Fix up your home and move back

Pros:

• You get to move back into your home.

Cons:

• You will have to go through the full process of working with contractors and rehabbing the home, creating both a financial and mental burden.
• If your home is still habitable, you will be living in a damaged home temporarily.

Option 2: Fix up your home then sell it

Pros:

• Potential to utilize insurance returns to fix up the basics of the home, then sell it as a “fixer-upper,” creating more value for the home than if you were to sell it as-is after the damages.
• Possibility to make a profit if the insurance claims cover all costs of the home.

Cons:

• Once again, you will need to complete the rehabbing of your home, which takes both time and energy.
• The housing market could transition away from your favor, forcing you to move back into your home.

 Option 3: Sell the home as-is

Pros:

• Remove the hassle of working with contractors and getting your home back to the place it was – complete the legal aspects then sell as-is.
• With an influx of all-cash buyers seeking damaged homes, you have the potential to make more from selling as-is compared to rehabbing.

Cons:

• No opportunity to move back into the home once the damages are repaired.
• Loss of money, depending on the offer you were delivered.

 There is no quiz you can take to get an easy answer on what to do. Our best advice is to follow the first steps then consult with an expert. Have the benefit of a professional walking you through your options so that you can fully understand your potential gains and losses.

We here at Gulf State Homebuyers would be honored to get started with you. We are educated and empathetic agents who are seeking the opportunity to help those in our community. We can provide a free assessment of your home’s value and discuss what the future holds for you.

Top 4 Reasons To Sell Your Home TODAY

Some people wait for specific events to occur until they are forced out to sell their home.  Whether it be a natural disaster, divorce, or another unforeseen circumstance. However, we are here to help inform you that selling your home in a state of panic can be a very emotional and challenging experience. Sadly, the market may not be supportive of your decision at that specific time. That is why we want to share with you why NOW is a good time to sell your home.

1. It Is Currently a Seller’s Market

First and foremost, let’s address the current market for people selling their homes: IT IS A SELLER’S MARKET. What does this mean? This indicates low inventory, high selling prices, low interest rates, and motivated buyers. With all of these factors in play, it makes it the perfect equation for a potential seller. If you are thinking about selling your home, do it now before the market shifts.

Let’s take a look at the Baytown Market to better understand HOW and what factors make it a seller’s market.

Low Inventory. Compared to July 2017, there are 10% LESS available homes on the market in July 2018.

High selling prices. Over the last five years, there has been a consistent upwards trend in home values in Baytown, TX. Average annual increase ranges from 5% – 10%. Recent economic reports identify an anticipated downshift in this trend however.

Motivated buyers. Millennials are HERE and ready to buy a home. FORBES estimates that 80% of millennials are seeking the opportunity to own a home because there is a sense of freedom in investing in real estate. A trend that is leading them out of their parents basements and into the home buying market.

Low Interest Rates. This is not unique to Baytown, but well addressed in the media nationwide. Interest rates are rising! Currently lingering at 4%, if interest rates rise, the buyer pool will decline. This means less buyers for you and a lower selling price!

2. Get Out of Debt

Sell your home, get the cash, and get out of debt! It is time to stop playing the mouse and cat game with your finances. Selling your home can provide capital to assist in paying off those pending debts. Americans have $3.898 trillion in debt currently, according to the Federal Reserve. This debt is a combination of credit card debt, auto loans, and school loans.

Accruing continuous debt can have significant impacts on your credit score and your potential for a secure financial future. Selling your asset can provide you with the capital to get out of debt and invest in a lower cost opportunity at reduced interest rates.

Once you get out of debt, the next most important thing you can do is reduce your expenses. Selling your home can provide the opportunity to:

● Downsize: Find a home that requires less maintenance costs and less time.

● Reduce property taxes: Research surrounding areas to see if you can save on your annual tax bill.

● Find a property that better suits your needs!

3. Change Your Investment Strategy

If you have owned your home for some time, you may be comfortable where you are and lack the motivation to move. However, ignoring the opportunities could be losing you money. Since it is a seller’s market, and you are sitting on equity, there may be an opportunity to improve your financial situation by changing your investment strategy.

Selling your home and transitioning into a duplex could provide you with the opportunity to become an investor and a homeowner. Many individuals are transitioning their capital to an income producing property. This option means that you can live in one unit and rent out the other, possibly providing coverage for your mortgage payment.

4. Follow Your Dreams

Owning a home and staying in one place was considered the “1950’s dream.” However, is it your dream? Thousands of Americans are taking the leap and moving abroad in hopes to learn about cultures around the world and try something new.

Although your dream may not be as drastic as moving to another country, obtaining the cash may provide you with the opportunity to get out of your rut and make a move towards a life you dreamt of living.

We here at Gulf State Homebuyers are supportive of all of our clients no matter what reason they having for deciding to sell their home. We provide honest assessments of their homes values and make offers that are comparable to on the market deals. If you are seeking a change, whether it is to improve your financial position or follow your dreams, we are here to help.

Just contact us and we can share with you stories about how we helped our clients make the change they were fearful to do. We can also provide a FREE consultation on whether this is the right time for you to make a move.