Guide to Selling Property After LA Fire [Avoid Predatory Buyers] 

As families mourn, the last thing they need is greedy speculators taking advantage of their pain – said Governor Gavin Newsom. 

The LA fires have been devastating, leaving many families facing the tough decision of selling their fire-damaged homes. During such vulnerable times, it’s heartbreaking to encounter buyers who try to take advantage of the situation.  

This guide is here to help you protect what’s yours, understand your rights, and sell your property confidently at a fair price. 

Property Seller Rights After the Los Angeles Fires

I have heard first-hand from community members and victims who have received unsolicited and predatory offers from speculators offering cash far below market value — some while their homes were burning. We will not allow greedy developers to rip off these working-class communities at a time when they need more support than ever before, said Governor Gavin Newsom 

To safeguard vulnerable homeowners, Gavin Newsom, Governor of California has issued an executive order aimed at preventing predatory practices during this challenging time.  

Here’s a comprehensive look at your rights as a homeowner in the wake of the LA fires. 

1. Protection Against Predatory Sales Practices 

In response to the crisis, California Governor Gavin Newsom issued an executive order specifically designed to shield homeowners in fire-affected areas. This order prohibits unsolicited and undervalued offers for properties.

Homeowners can now rest assured that they are legally protected from real estate speculators attempting to take advantage of their vulnerable position. 

2. Ban on Unsolicited Offers in Affected Zones 

The executive order applies to specific Los Angeles County zip codes (90019, 90041, 90049, 90066, 90265, 90272, 90290, 90402, 91001, 91040, 91104, 91106, 91107, 93535, and 93536) hardest hit by the fires, including Malibu, Pasadena, and Pacific Palisades.

This measure ensures homeowners are not pressured or coerced into making hasty decisions during the state of emergency. 

3. Enforcement of Anti-Predatory Laws 

California’s laws against predatory practices are being strictly enforced to protect homeowners. Under the executive order, real estate transactions must adhere to fair market value as of January 6, 2025, preventing greedy developers from acquiring properties at prices significantly below their worth. 

4. Legal Penalties for Violators 

To emphasize the seriousness of these protections, violators of the executive order face stringent penalties, including: 

• Fines of up to $1,000. 

• Imprisonment for up to six months. 

• Both penalties for severe infractions. 

This order is in effect for three months, and any violations can be reported to the California Attorney General’s Office at oag.ca.gov/report. 

The Governor has also directed the Department of Real Estate to swiftly identify and expose any unlawful or fraudulent practices targeting property owner’s post-emergency. They will inform the public about these practices, their rights, available resources, and how to report violations. 

Selling Your Property After the LA Fires [Avoid Predatory Buyers]

1. Evaluate Your Property’s Fair Market Value 

Start by using tools like Zillow’s “How Much Is My Home Worth?” to get an estimated value of your property.  

Then, consult a licensed appraiser and work with a trusted local real estate agent to refine this estimate and accurately calculate your property’s fair market value. 

2. Document Damage and Repairs 

For insurance purposes, take detailed photos and videos of any fire-related damage to your property. Keep records of all repair work or cleanup efforts, including receipts and contractor details, to support your insurance claim, provide transparency to potential buyers, and justify your asking price. 

3. Don’t DIY This Sale

While you might consider handling things on your own, it’s a smart move to partner with a trusted real estate agent and attorney. They’ll help protect your interests, guard against predatory buyers, and ensure you get a fair market value for your property. 

4. Be Cautious of Predatory Buyers 

Be cautious of unsolicited offers, especially those from buyers offering quick cash well below market value or using high-pressure tactics. Common tactics include creating a false sense of urgency, using high-pressure language to push you into quick decisions, or misleading you about the market value of your property to secure a deal far below its worth.  

Don’t accept these offers, even if they come through your agent—never consider anything below market value. 

If you encounter any predatory behavior, report it to the California Attorney General’s Office at oag.ca.gov/report. 

5. Market Your Property Effectively 

Highlight your property’s potential by emphasizing opportunities for renovation or rebuilding in your listings. Work with your real estate agent to showcase the post-renovation value, attracting serious buyers and investors looking for high-return opportunities. 

6. Negotiate and Finalize the Sale 

Review all offers carefully and negotiate based on your property’s fair market value. Have legal documents reviewed by a trusted attorney to ensure a secure and fair transaction. 

Explore Alternatives Before Selling 

Before deciding to sell your fire-damaged property, take some time to consider all your options. Here are a few alternatives that might help: 

1. Look for government or nonprofit programs that offer financial assistance or grants for rebuilding homes after this disaster. Consider waiting for potential aid announcements before making any decisions. 

2. Explore community rebuilding efforts or partnerships with local contractors offering special rates to help fire victims. 

3. Ensure that you have fully explored your insurance coverage. Contact your insurer to understand the extent of your policy and the compensation you can claim for damages.
   In case you are worried about policy renewal, California has banned insurance policy cancellations until 2026.  
   
   “Losing your insurance should be the last thing on someone’s mind after surviving a devastating fire,” said Insurance Commissioner Ricardo Lara. 

4. Engage with financial advisors to understand the long-term implications of selling versus holding onto your property. 

While these tips offer practical guidance, only you truly know what’s best for your unique situation. Use this information to make rational decisions, ensuring the challenging circumstances don’t lead to choices you may later regret.  

Remember, you are protected by government laws, and it’s crucial to avoid selling your property to those who seek to exploit the situation. If you encounter such opportunists, report them promptly to safeguard your rights and the community’s integrity. 

If you need assistance, we have a network of over 500 trusted real estate agents ready to connect with you and prioritize your best interests. 

About the author:

Michele Lawrie, a seasoned real estate professional licensed in New York and Florida, serves as the Chief Real Estate Officer at HomeAbroad. With over 15 years of experience and specialized certifications from the NAR (National Association of Realtors), Michele is a trusted expert for foreign nationals buying US real estate.

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