My husband and I were in the process of trying to get a home loan to buy our first house. The home is a two story house that was built in 1890. We were going to be paying $50,000 for it. It burned a few days ago distroying the kitchen, bathroom, utility room and doing some damage to the living room. All of the rest of the rooms have smoke damage. The insurance company will be restoring it back to its original state. Their estimate is that it will take $150,000 plus labor to fix. Does anyone have any idea what this will do to its value?
2007-11-23 12:47:07 · 3 answers · asked by Tara P 2 in Home & Garden ➔ Maintenance & Repairs
Your numbers don't make sense. Why would an insurance company pay 150, 000$ plus labor to fix a house worth 50, 000. Who would pay insurance premiums for 300,000$ home (materials and labor) on a house they could only sell for $50,000. Its historic value may make it worth fixing but I can't believe the insurance company would do it.
2007-11-23 14:40:47 · answer #1 · answered by paul 7 · 0⤊ 0⤋
If the work is done by a good contractor and inspected by building dept, it will not go down. Inlaws went through this near Chicago and there value actually went up, because everything was new and rebuilt, like a new house.
2007-11-23 13:07:27 · answer #2 · answered by Yoda 5 · 1⤊ 0⤋
Down down, goes the value, once burned makes a weak house, they always burn again,
the insurance co would be a lot smarter to bulldoze it and build a new one, i would look else where.
2007-11-23 12:53:15 · answer #3 · answered by William B 7 · 0⤊ 1⤋