Burned down house

[Donny Widjaja]

Hi BP members,

I found a burned down house (big hole on the roof, broken windows, and it has been abandoned for a year or longer according to the neighbor) and surprisingly, someone mowed the lawn because it looked neat.

I estimated the ARV around $110K to 120K. The tax value: $92K. The house has 4 bd / 2 ba, about 1600 sq ft.

How do I estimate the repair cost for this house?  Do I need to assume I demolish the whole house? I did a quick search online, the estimated cost to build a house is $100 / sq. ft (or higher).  So, I'm looking at $160K.  Is this even worth buying?  The outside bricks seems like in a decent condition. 

[Russell M.]

The mowing was probably done by code enforcement for the city.  It is worth finding the owner of record to see who that is being billed to.

To add on to what others said regarding repairs.  If you choose not to bulldoze and start over, there is a likelihood of needing all new pipes and electrical.  Depending on the age of the house, if it has been open for that long, anything copper is probably long gone.

Depending on the size (temp) and location of the fire, it is possible that some or all of the brick is compromised.  The outside portion of the brick may be in good condition, but the inside that was exposed to heat may have caused cracking in the middle somewhere.

Probably one to buy for the land and location, not the structure.