Selling A House With Hail Damage

Published on April 3rd, 2023

Natural disasters, severe weather, powerful storms, and strong winds can cause roof damage, broken windows, and other major repairs. As a homeowner, what do you do if your home has this type of damage and you're hoping to sell?

Should you file an insurance claim with your homeowner insurance company to repair the damage and deal with an insurance adjuster before selling your home, or should you lower your initial asking price and sell your home as is?

Why Most Homeowner Should Be Concerned About Storm Damage And Your Home's Selling Price

Responsible homeowners know that storm damage like missing shingles, roof damage, broken windows, broken chimneys, and more are not just immediate problems. If left unrepaired, these damages to the roof and other areas of the home can cost significantly more down the road as it causes residual damage.

While many insurance companies will cover damage caused by hail storms, in particular in most states, the process of getting a roof inspection, using the insurance proceeds to getting your roof fixed, and the time it will take to do all this might not fit in with your moving timeline - then what?

There are five different options available to you as a property owner, which we discuss below.

Selling Your Home Through Real Estate Agents To Buyers

Selling your home in a traditional manner through a real estate agent could be an option for you. As long as you are able to disclose all known damage to your property as the seller, many buyers will feel comfortable and will know what to expect when purchasing your house.

During the buyer's option period, they might opt to do a roof inspection, general property inspection for water damage, etc., which might show some telltale signs of hail damage.

A buyer might request that you try to fix these items that come up on the inspection report prior to the closing or sale of the property; however, as the seller, you have the right to negotiate with home buyers to not have to do this. Your real estate agent will advise you on the best course of action depending on the severity of the damage to your house and the current market value of your home.

Suppose you don't want to have to deal with the insurance company to repair the hail damage and want to sell your home in as-is condition. In that case, a great alternative is to sell your house to a real estate investor who knows how to deal with hail damage and isn't afraid to do so.

Most homeowners with extensive roof damage know that their property won't pass a home inspection from a potential buyer. Investors generally don't ask for them, especially when the house is in a distressed condition.

As the new owner of your property, as a real estate investor will make the needed repairs after the closing date of the contract and then either re-sell your home or rent it out to tenants.

Selling Your Home Directly To A Private Home Buyer

Depending on the level of hail damage your house has, you might want to consider selling your home directly to a home buyer as a for sale by owner. Selling your home directly to a buyer might reduce the overall amount of money you receive for the purchase price of the home, but it can also come with a lot less stress.

Sellers can advertise your home on social media sites, newspapers, and websites designed for these types of sales. You can stipulate if a buyer can bring in a home inspector to inspect the roof and check for water damage and other hail storm-related damages.

Ultimately in these types of situations, buyers typically buy homes as is and know that they will have to pay for a potential roof replacement or other repairs.

Selling To A Company That Buys Damaged Houses

There are companies that will buy your home without a roof inspection or asking you to make repairs to the roof before selling.

Often, these companies come to areas of the country after they are affected by bad weather and offer quick closing dates and a fast sale. Checking the legitimacy of these companies is as easy as hopping on your computer for a quick Google search or calling your local Better Business Bureau to confirm their legitimacy.

To protect your assets, always make sure you have a licensed professional look over and contract a company provides you to purchase your home.

Selling your property at an auction is always an option, not just for homes in financial distress or sold by a bank at foreclosure. To successfully sell your home at an auction for a reasonable amount of money, you will want to do the following:

• Hire a professional auctioneer who is experienced in selling homes.
• Choose between an absolute auction or an auction with a reserve.
• Find out how the bidders will be qualified to purchase your home.
• Determine how you will accept bids during the auction.
• Market your home properly in local papers and social media sites before the auction.
• Following these steps and advice from your auctioneer should ensure a successful sale.

Not every home needs to be sold after hail damage, but if yours does, then following one of the five options mentioned above will help ensure that you will be able to move on and start over again with a new home. For more information on selling properties with damage and dealing with your insurance company, check out the rest of our blogs.