how difficult is it to resale a house that has been declared to be in a flood plain?

Asked by C Ici, 78664 Thu Aug 13, 2009

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Greg Hodge, Agent, Round Rock, TX
Thu Aug 13, 2009
Hi C Ici,

Don't over complicate it and focus on the positives like many have already said. People can always buy the flood insurance or a raft, especially if you are in FEMA zones A, X, or B.

I'd suggest using Alex Booth, (512) 554-4147, to help you out. She is currently marketing a listing in the Villages of Hidden Lake near Lake Pflugerville and lives in your area.

Greg
0 votes
Joe Loomer, Agent, Augusta, GA
Thu Aug 13, 2009
There is a process via the HUD website to petition to remove a property from a flood plain. I suggest you contact your local HUD office or the toll free HUD/FHA help line at (800) 225-5342,

It is a relatively simple, two-page form. If the home has not flooded in recent history (25-35 years), you will probably be approved and no longer have the stigma attached to the home.
0 votes
Stephen McCl…, Agent, Georgetown, TX
Thu Aug 13, 2009
Hi C Ici,

Without sounding redundant to great answers below FOCUS ON THE POSITIVES of the property. Flood plain may be an issue/obstacle for some but if the rest of the package is desirable it wll not eliminate a sale. The main point is to disclose up front so as to proactively address and minimmize the issue rather than avoid/hide the issue. It is what it is. Work to solutions through information offered up front.

If you are priced correctly given your market (neighborhood and competition), if the home is in the right condition- READY to market and sell, if the property and home are appealing to the buyer's eye and you have the right marketing approach you will be successful.

Work smart not just hard.

Sincerely,
Stephen B. McClain, Broker/Owner
Cornerstone New Home Solutions

Certified Instructor/ Texas Real Estate Commission
Champions School of Real Estate

smcclain@cornerstonenewhomesolutions.com
512 876-3116
0 votes
Bruce Lynn, Agent, Coppell, TX
Thu Aug 13, 2009
I think it depends on the chance for flooding. Does it flood every year or is it merely in the flood plain and you can't remember when the last time it flooded was, since it was so long ago, or perhaps it has never flooded?

I would probably have information about flood insurance and the cost readily available perhaps online that they could download with the sellers disclosure. Sometimes it really isn't all that expensive.

I think resale will depend on many factors as mentioned below. If the house has flooded before and remains in significant danger of flooding it could be difficult to sell. If it has never flooded and issue has largely been fixed, and insurance is cheap it could be an easy sell with the right view and location.

Good luck.
0 votes
Jeffrey Nyla…, , Austin, TX
Thu Aug 13, 2009
Hello C Ici,

I hope you have having a super day! All are great answers below and I especially like Mary and Terri's comments.

Have all your "ducks in a row" when presenting information about the flood plan to a potential buyer and make sure you have the very best marketing plan in place...market, market, market!

All the best!
Web Reference:  http://NylandTeam.com
0 votes
HBHMgmt, Other Pro, Round Rock, TX
Thu Aug 13, 2009
Remember to have your agent use comps from the same exact area, preferably IN the flood plain. That way when you are setting your sales price you have a real "Apples to Apples" comparison on price. As the others have said here, if your price is right, you are in a good location that is desirable AND you are staged nicely, the buyer will show up!

My $0.02,
Steve
0 votes
Walter Rock, , Round Rock, TX
Thu Aug 13, 2009
Many homes in the flood plain have other desirable features like a view or they back up to a greenbelt/creek which can make them less plentiful and sometimes more desirable. The annual cost for flood coverage can vary from as little as $200, up to $2,000, depending on what FEMA designated flood zone you live in. Many buyers will accept the additional cost of the flood insurance if the property is what they are looking for, especially if the home has never flooded. With our current drought, flooding is a distant memory :-)
0 votes
Terri Salyer, Agent, Round Rock, TX
Thu Aug 13, 2009
The three most important factors in selling a home the quickest and for the most money, are Location, Condition and Price....if your location is otherwise desireable, the house is in good condition, (maybe staged) and priced well, it will sell. You may have fewer buyers because of the flood plain. I would probably focus on marketing the most desireable features and have information available for any potential buyer about the flood plain and flood insurance. An informed buyer will feel more comfortable and less apt to back out once in contract. Most buyers want to fall in love with their home-I am sure there are other features that will cause them to over-look the flood plain issue. Get a professional stager on board and an aggresssive agent to get it done! You CAN do it!!
0 votes
Mary Condon, Agent, Boston, MA
Thu Aug 13, 2009
Most homes do sell when you are able to define the "buyer", market aggressively to that "buyer" ,you price is correctly, you have all the information for someone to make an informed decision.

Are there any desirable features to the location - even in the area? Make sure you highlight that in your aggressive marketing.

Choose a Real Estate Agent who has Experience with similar issues and one who knows how to aggressively market your property to a global market place: for example - syndication to multiple social and business networking sites. Make sure this agent follow up thoroughly to all inquires and invites showings.

Go For It !
0 votes
Abe Mills, Agent, Greenville, SC
Thu Aug 13, 2009
It depends on how highly desired the area is, and how highly desired the house is. Flood insurance is fairly inexpensive, as you probably already know. Yes you will miss a few buyers, but some are fine with it.

Good Luck!
Web Reference:  http://www.abemills.com
0 votes
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