I have found that investment properties in the area are having bidding wars that ultimately raise the price past the value of the damaged properties.

The factory gasket is breaking down prematurely and can be damaged by in tank cleaning products a lot of tenants use. 

Keep in mind,...the area is still recovering and investors have jumped at the opportunity to purchase damaged homes at prices that they think are good.....not all of the prices are good.

I dry their houses out or remove mold damaged and fire damaged materials, then we work together to restore their homes to almost brand new.

They have some innovative ways of dealing with things deposits for damages, insurance, etc. 

I've been very lucky so far with no damage. 

@Ned Carey One of the required elements of a DIL transaction is that the mortgage balance exceeds the property’s current value.

Security Deposit is for damages (typically) and can only be uses after the lease is over and tenant is out of the rental.  

The old growth trees which appear to be impinging on the house could be viewed as a negative in terms of potential damage to the house in a wind storm and to the foundation / basement over time.How does this house's square footage stack up against the comp.'

I do know the buyer lost and it wasn't for the price of the house but for damages, financially in thousands of dollars as well as for the emotional side, changing schools along with the hassle factor.