Home Selling in 06001>Question Details

chefkerrie, Both Buyer and Seller in 06001

How difficult is it to sell a home that is now determined to be in a flood zone (per FEMA's redrawing of flood zone maps approx 5 years prior)?

Asked by chefkerrie, 06001 Mon Oct 7, 2013

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One more thing, some of these answers are coming from out of state agents or agents on the shoreline. To give you some perspective, the current owner of the house I am facilitating the sale of, very close toAvon,is paying approximately 100. Pr month for flood insurance. A few years back I sold a house in a flood zone in Avon, and the annual flood insurance cost was about 300. Rates are going up, but you cannot compare your location to coastal areas hit hard by recent hurricanes. Hope that helps!

Here is a link to a government site with FAQ: http://www.fema.gov/frequently-asked-questions-0/homeowners-…
0 votes Thank Flag Link Mon Oct 7, 2013
To add to the previous informative posts, all homes purchased in flood zones will require an elevation certificate prior to obtaining flood insurance, in order to determine the rate. A home may or may not have such a certificate on file at town hall or in possession of the homeowner or developer. These certificates have to be prepared by and certified by a Licensed Land Surveyor or Registered Professional Engineer. The cost can vary depending on the size of the house and location of physical benchmarks, some of which have been destroyed, according to a land surveyor I spoke with. I am in the process of brokering the sale of a home in a flood zone. The buyer is responsible for having the certificate prepared. You may want to speak with a surveyor or engineer to get an idea of the cost. It may facilitate the sale if you have this certification prepared ahead of time, especially if it helps determine that the flood insurance rate is relatively low. I hope this information is helpful. I have more information and suggestions...feel free to contact me.
0 votes Thank Flag Link Mon Oct 7, 2013
It may be more difficult right now depending upon the zone your home is in and whether it suffered damage from Storm Sandy.
If priced right, your home will sell.
0 votes Thank Flag Link Mon Oct 7, 2013
ChefKerrie,
It may become impossible!
When the flood insurance premium is four times the mortgage payment...that's a challenge.
When five years of premium payments is greater than the cost of the home...that is a challenge.
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Just Last week: quote for flood insurance, last year $2,600, this year $46,000! That is not a typo..that reads fourty six thousand dollars!
Example after example shared with Governor. See my Trulia blog.
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At this moment, flood zone properties may become a 'cash only' enterprise.
This is serious.
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The heart breaking part of this is those properties with the 'big water view' will be less effected than the single family home near Simpson Creek in Bridgeport, WV. Without real change to current policy, the majority of these homeonwers WILL be forced into FORECLOSURE because the can ot pay $1,000 monthly for flood insurance. These are folks who earn the $40,000 to $70,000 a year, have a $170,000 single family home with at least one child.
Here in Pinellas County that adds up to 33,000 home owners.
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Gauranteed increases in taxes, $600 monthly for Obamacare, rising insurance, decreased working hours lower effective income....will leave citizens with a severe case of distress trauma.
Witihout change, flood zone properties without a big water view are destined to become campgrounds.
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Folks get on the phone. You know what you need to do.

Best of success.
Annette Lawrence, Broker/Associate
Remax Realec Group
Palm Harbor, Fl
727.420.4041
0 votes Thank Flag Link Mon Oct 7, 2013
If the home was damaged by Super Storm Sandy it may have to be raised to meet new FEMA guidelines. The zone the home is in may also make a difference. It may be more difficult to sell.
0 votes Thank Flag Link Mon Oct 7, 2013
Homes in flood zones sell all the time. Being in a flood zone doesn't mean there is a dramatically high chance of the home flooding. It just means that anyone using a mortgage to buy the house will be required by their lender to carry flood insurance. That could entail a huge expense - I've seen some flood policies run as high as $6,000 per year - but then again I've also seen some that are only a couple hundred dollars a year.

To some people that will be a deal-breaker since they won't be able to afford it. To others it will be no big deal and just another cost of homeownership. If the home is priced right it should sell.
0 votes Thank Flag Link Mon Oct 7, 2013
Your pool of potential buyers may be smaller now, as new flood zone areas will require flood insurance to be purchases which in turn will effect mortgages and financing. People that may have been qualified to get financing before may not be able to qualify now with the inclusion of flood insurance. Having said that, If a property is priced correctly and marketed it still should sell. Please feel free to contact me if I can be of any further assistance. Good luck!
0 votes Thank Flag Link Mon Oct 7, 2013
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