The new buyer must be prepared to be self insured, this means CASH BUYER ONLY!
What bank would grant a mortgage on a property where the near term (5 yr) costs could quadrauple and force the buyer into foreclosure.
A buyer or seller could consider the appr $50,000 required to elevate the house, but even that does not assure the flood insurance premiums will be manageable.
The recent, and apparently only response the dolts in DC know, was to kick the can down the road, thereby extending the uncertainty for anohter five years before they implement a step phase out of the entire subsidy. At that time the insurance companies will applied premiums based on real actuarials from the Federal Flood Insurance program. Many states, such as Florida, hopefully, will choose to be self-insured.
Those making a living exclusively through waterfront sales is in for stormy seas ahead. There are buyers who can pay cash and wll forego the insurance. These buyers know the seller is in a real hard situation. The owner may see greater benefit in a more strategic solution.
It willl be comical, for those of us living high and dry, to see the author of the Bigger-Waters Act back pedal. Waters is already dodging and weaving.
I have a First Look, high & dry, with easy access to the Gulf.
Another First Look, with a great big water view and direct deep water frontage to the Gulf, for those who are looking to sieze the moment.
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, Fl
Move to the Front of the Line (http://FirstLookHomes.us)
Although I do not have the crystal ball to predict this situation, it is my personal opinion that this is what will happen. I would be careful as to owning any waterfront property as an investment. If money is not an object then the risks for the very wealthy may still be willing to take the risks associated with flooding and be able to pay for the costs of such as well.
Lifeguard Real Estate, Inc.
as of now we still don't know--the maps have not yet been completed as far as I know, and we don't yet know the effect--even insurance agents I have asked still don't have the answers to this question. It could lower the prices, as it might very well diminish the buyer pool as people can't get affordable insurance-- it will also have major impact on lender availability.