With the initial shock and grief of the devastating Woolsey fire now fading into the rearview mirror, it is time for our community to begin a new chapter. For some, this means repairing and rebuilding the real estate lost. For others, it is time to move on. The cost and time of rebuilding can be a significant obstacle and depending on an individual’s circumstances, the feasibility of rebuilding itself can be questionable.
As Malibu land specialists, we have received a multitude of questions regarding selling a burnout lot in Malibu. In this blog post, our aim is to address both the process and the most common questions that we have received.
Debris Removal
Getting a damaged property cleared is of the utmost importance. The City of Malibu has divided this process into two phases:
- Hazmat Inspections: The removal and disposal of fire debris cannot proceed without being inspected and cleared by a HazMat Team from the U.S. Environmental Protection Agency (EPA), the California Department of Toxic Substance Control (DTSC) and Los Angeles County Fire Department. Owner consent is not required.
- Once a property has been assessed, property owners will have two options. The first is opting into the California Office of Emergency Services (CalOES). They will remove fire debris at no out-of-pocket cost to the property owner. Owners will not be charged beyond their insurance and those without insurance will receive this service free. The second option is to opt out of this government service. Owners must either hire a state-certified contractor or manage the debris removal project themselves. This option for debris removal is at the property owner’s expense and will not be reimbursed with public funds.
For more information on Debris Removal, visit the City of Malibu’s website here.
Inspections
After the initial cleaning, the foundation must be inspected to know whether it is structurally sound to rebuild on or if it will have to be reconstructed. For this service, an engineer or contractor can complete this evaluation.
Septic systems must be inspected as well. Also referred to as onsite wastewater treatment systems (OWTS), these will need to be inspected by a City-registered OWTS practitioner to verify their functionality before they can be used for either a permanent rebuild or a temporary trailer. Most of the components of an OWTS are located below ground and are typically more resistant to fire damage.
Damage to septic systems may occur due to high heat, exposure to flames, smoke, ash, and power outages or equipment failure. In addition, fire materials may have contaminated the contents of tanks and the liquid. A City registered Practitioner must inspect the OWTS for signs of damage and functionality of components and submit an inspection form prior to utilization of the system. For more info, click here.
The status of both the foundation and the septic system will drastically impact both the feasibility of a rebuild and the value of selling the lot as a burnout.
Apply for an Exemption
Even if a property owner plans to sell a burnout lot, it is essential that they apply for a Disaster Replacement Exemption. For more information on this topic, see our previous blog.
Lots with approvals for a home in the same footprint of that loss will be exceptionally more valuable. This is always the case in Malibu, however, those who suffered a loss have a unique opportunity to expedite this process.
Approvals for a legal structure within the same footprint (plus 10% size increase allowance) will allow for buyers to design a home to their architectural preferences while bypassing months, even years, of applications and studies.
Protect Your Land
After any wildfire, soil conditions are known to produce rock and debris flows. These form quickly, and can be particularly devastating during high-intensity rainfall. Areas that are not typically prone to flooding may now be at new risk due to higher than usual flows in nearby streams and creeks.
The City of Malibu has provided a map of likely debris flow areas as well as a multitude of locations where sandbags will be available to residents at no cost.
By preparing for potential debris flows and taking action to divert these from the burn site and property, residents can protect their efforts to clear the land and any remaining structures.
Find a Land Broker
The last step in selling a burnout lot is finding the right real estate broker. Malibu only has a handful of agents who truly understand land, the permitting process, and the value that a burnout lot can have on the market, as well as the nuances of each particular lot.
Our team, in particular, has a deep history in selling land in Malibu representing both buyers and sellers. We are proud to represent sellers with a wealth of experience, stunning visual imagery, drone photography/video, graphic design, and detailed offering memorandums that present properties in their fullest, best light.
For a no-obligation property and market analysis, contact our team. We’d love to learn more and see how our innovative approach to real estate can help you achieve your best outcome.
To view our exclusive land listings, click here!
To get in touch, email russellandtony@compass.com or call 310.230.5771.
