Pennsylvania situation guide · Updated November 2026

Wholesaling Fire-Damaged Houses in Pennsylvania

Wholesaling fire-damaged houses in Pennsylvania means putting a burned property under contract at a discount, then assigning that contract to a rehab buyer. Philadelphia’s dense row-home blocks, older wiring and aging rentals produce a steady stream of kitchen fires, electrical fires and full-structure losses. Owners are often stuck with a damaged house, an unpaid mortgage and an insurance claim they do not know how to manage. A calm, honest offer can help them. This guide shows how to run the deal safely.

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The short answer

Can you wholesale a fire-damaged house in Pennsylvania?

Yes, in most cases you can contract for a fire-damaged house and assign that contract, as long as you follow the wholesaling rules that took effect in 2025. Check the current statute and State Real Estate Commission guidance, because details can change.

A fire loss changes who has a say in the deal. The owner, the mortgage lender, the insurance company and sometimes a city inspector all have an interest. Before you price anything, ask the owner about the claim, the lender and any open permits. Our fire-damaged house guide covers the basics of what burned homes look like inside.

Pennsylvania treats residential wholesaling as a licensed activity under the Real Estate Licensing and Registration Act. The law defines a wholesale transaction and, as the research we reviewed describes it, requires a statement telling the seller they may get an appraisal and consult others. Read our legality guide and our license rules guide before you sign a first contract.

Fire-Damaged Houses in Pennsylvania at a glance

Governing law	Real Estate Licensing and Registration Act, as changed in 2025
Seller disclosure	Known material defects must be disclosed on the state form
Transfer tax	State 1% plus a local share, due at recording
Insurance	The mortgage lender is often named on the claim check
Foreclosure	Judicial, with court notices before a sheriff sale
Best exit	Cash rehab buyers who can pull permits

The opportunity

Why fire-damaged houses sell in Philadelphia

Philadelphia has a huge stock of attached brick row homes built decades ago. When one unit burns, smoke and water often reach the neighbors, and owners feel pressure to settle fast. Some own the home free and clear and do not want a long rebuild. Others carry a mortgage and find the insurance payout will not cover the repair. Rehab buyers in neighborhoods such as Kensington, Germantown and Southwest Philadelphia look for these properties because the entry price is low. Your job is to reach the owner early, listen, and price the house by what it costs to fix rather than what it looked like before the fire.

Uninsured owners

A lapsed policy leaves the owner with the whole loss. A fast cash sale ends the problem.

Landlords

Small landlords with a burned unit and no tenants paying rent often want out. See our tenant-occupied guide.

Heirs

A relative who inherits a burned house may not want to rebuild it. Our heirs property guide explains the title issues.

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Lead sources

Where to find fire-damaged leads in Philadelphia

Fire incident reports. Local news and public incident lists show recent fires and addresses worth a letter.
Driving for dollars. Boarded windows and scorched siding are easy to spot. Use our driving guide.
Code violations. Unsafe-building notices point to owners under pressure. See code violation leads.
Direct mail. A short, kind letter works best. Try our yellow letter tips.
Tax delinquency. Burned homes often fall behind on taxes. See tax delinquent lists.

Your exit

Who buys fire-damaged houses in Philadelphia

Cash rehabbers and small contractors are your main buyers. They can read a burn scope, price a new roof and joists, and carry a project through permits. Show them photos, the fire department report if the owner has it, and a repair range. Our repair cost guide helps you build that range.

Buyers will ask whether the structure is sound and whether the house can be occupied. Be honest about what you do not know. Use an investor-friendly title company that understands assignment closings and can clear any open claims or liens.

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Step by step

How to start wholesaling fire-damaged houses in Pennsylvania

Talk to the owner. Ask about the claim, the mortgage, the date of the fire and any city notices.
Walk the property when safe. Never enter a damaged structure you are not sure is stable.
Estimate the repair. Use the ARV calculator and the MAO calculator with a contractor’s range.
Check the title. Search for liens and mortgages. See doing a title search.
Make a written offer. Follow our wholesale offer guide and include the required seller statement.
Market to buyers. Send photos and numbers to your list. See finding cash buyers.
Close with title. Assign or double close. Compare options in double closing and funding.

Your checklist for wholesaling Fire-Damaged Houses in Pennsylvania

Confirm whether an insurance claim is open and who gets the payment.
Ask the lender how a sale affects any claim funds.
Disclose that you are a wholesaler and may assign the contract.
Give the seller the appraisal and consult-others statement the law requires.
Review the current statute with a Pennsylvania real estate attorney.

A Pennsylvania example: a burned row home in Philadelphia

Pre-fire value	$185,000
Repair estimate	$78,000
Buyer cost to exit	$18,000
Purchase contract price	$62,000
Assignment fee	$9,500
Buyer total price	$71,500

A landlord in Philadelphia owned a two-story row home in Kensington. A kitchen fire damaged the first floor and the roof. The landlord had a small policy that would not cover the full repair.

You met on site, reviewed the estimate and agreed to a $62,000 price. You gave the written seller statement, explained that you planned to assign the contract, and set a 14-day inspection period.

A rehab buyer reviewed the scope and paid you a $9,500 assignment fee.

Pennsylvania rules to know

Disclosure, wholesaling law and lender rights

Pennsylvania’s Real Estate Seller Disclosure Law requires sellers to disclose known material defects on a state form. Pennsylvania courts have not extended the duty to every topic, so stick to what you know is true and put fire history in writing.

In 2025 the state brought residential wholesaling under real estate licensing rules. Generally, sellers may have cancellation rights, so do not assume a signed contract is final. If a mortgage is in default, Act 91 and Act 6 notices come before a court foreclosure, so ask what notices the owner has received. Read the current text and consult an attorney. Our attorney guide helps you choose one.

Learn it with a mentor

Price the damage with confidence

Our mentorship students send us photos and scopes, and we walk through the repair math and the legal steps with them.

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FAQ

Fire-Damaged Houses in Pennsylvania: common questions

Is wholesaling fire-damaged houses in Pennsylvania legal?

Generally yes, when you follow the state licensing law for wholesale transactions, make the required disclosures and deal honestly with the owner on every point. Fire cases are sensitive, so be upfront about your role and have an attorney review your contract.

Who gets the insurance money on a burned house?

It depends on the policy and the mortgage. Lenders are often named on claim checks, so ask both the owner and the lender before you promise anything. Do not assume the owner can assign claim money until you see the loan terms.

Do I need a license to wholesale in Pennsylvania?

The 2025 law brought residential wholesaling under real estate licensing rules. Check the current statute and Real Estate Commission guidance. Because details can change, confirm your status before marketing a burned property, and ask an attorney if you are unsure.

What taxes apply when a burned house sells?

Pennsylvania charges a 1% state realty transfer tax, and localities usually add their own share. Title will calculate the total. Ask for that figure before you set your price, because the contract decides how the buyer and seller split it.

Should I walk inside a burned home?

Only if it is safe. Bring a contractor when the structure looks damaged, and never enter if the roof or floors may fail. Smoke, water and unstable framing can hide hazards, so photograph the exterior and get professional input first.