Detroit Fire-Damaged Home — Sold As-Is in 13 Days

The situation

After a kitchen fire on the east side of Detroit, Robert's home suffered smoke damage throughout the first floor, structural damage to a load-bearing wall, and a partially collapsed roof over the kitchen. His insurance paid out the policy limit ($85,000), but the cost to rebuild was estimated at $145,000. Robert lacked the cash to make up the difference. Three insurers had refused to write a new policy on the property, and his existing carrier was non-renewing.

The challenge

Fire-damaged homes are uninsurable until repaired, which makes them difficult to sell traditionally — buyers can't get financing without insurance. The property was effectively unmarketable on the MLS. Without insurance, Robert was also personally liable if anyone got injured on the property.

What we did

1. Inspected the property within 24 hours, including the damaged areas.
2. Made a written cash offer of $48,000 (ARV after full rebuild estimated at $135,000 minus $48K repairs).
3. Closed in 13 days at a Detroit title company.
4. Insurance payout went directly to Robert at closing — separate from the sale proceeds.
5. Property has since been rebuilt and is back on the market as a restored home.

The outcome

Robert received the cash sale proceeds AND kept his $85,000 insurance payout. Net to him: $133,000 — significantly more than he could have netted by trying to rebuild and sell traditional, given his cash constraint. The property liability transferred to us at closing.