HOUSE IN A FLOODPLAIN? HOW IT MIGHT AFFECT SELLING YOUR HOUSE

INTRODUCTION

Selling a house and wanting to sell your house fast can be a difficult process. It is even more difficult if the area has a historic risk of flooding. This risk, if severe enough, often means your area has a flood zone designation. With this comes additional costs and potential speed bumps to selling your house. Since floods are very risky for insurance companies areas that are designated as special flood hazard areas qualify for a national flood insurance program. This makes purchasing flood insurance possible, although flood insurance premiums can be quite high.

If you're selling a house that's in a flood plain, there are some things you should know about the process. If you're buying a house that's in a flood plain, there are also things for you to consider. We'll look at how these properties are priced and what happens when they sell. When someone is buying a home, they rarely want to buy in high-risk areas of a flood zone.

HOW DOES HAVING A HOME IN A FLOOD PLAIN AFFECT THE VALUE OF YOUR HOUSE?

A flood plain can negatively affect property values, making selling your house more difficult. Flooding can cause damage to your home and its foundation, which could make it harder for you to sell. Flooding also makes it hard for potential buyers to get insurance on their own homes if they are close by and could be affected by future floods. After a major flood, the extensive flood damage not only hurts the value of the property, but the additional strain on local services means quickly replacing water-damaged items can take quite some time.

If you have a home in a flood plain, it's important that you understand the decisions that come with owning such a property and what options are available to help mitigate these risks.

WHAT HAPPENS IF YOU DON'T DISCLOSE THAT YOUR HOME IS IN A FLOOD PLAIN?

If you don't disclose this information, and the buyer finds out later, the obvious and most immediate consequence is they'll be upset with you. They may try to sue you—and they could have a good case. You could also get sued by a business partner in the ordeal because they could still own part of the house until it's sold. The bank will probably want their money back if there's no mortgage on the property anymore. And if the house has gone through an insurance claim in the last 5 years (for example, after Hurricane Katrina), there might be problems with your homeowner's policy or flood insurance policy as well—so it's important not only to disclose but also to let them know that there are possible complications ahead.

If word gets out that one house is affected by flooding risks and not another one down the street—and especially if it looks like those risks were concealed from unsuspecting buyers—nobody wins! Not even neighbors who are part of an exclusive neighborhood association where everyone else thinks nothing bad ever happens can escape this kind of trouble when someone doesn't take care of their business properly before going public about their home sale plans.

SHOULD YOU MENTION FLOODING HISTORY TO PROSPECTIVE BUYERS?

When considering whether or not to tell buyers about a house's history with flooding, the most important thing is to first research the last time it happened. If you can find evidence that there was a flood more recently than five years ago, and especially if this flood was severe enough to damage your home, it's worth disclosing this information before you put it on the market.

However, depending on how much damage occurred during the flood (how many walls were damaged or destroyed) and how long ago it took place, there may be no point in mentioning anything about this issue at all. If there are still visible signs of previous flooding in your basement—e.g., water stains from previous floods—you might want to disclose this information as well; just remember not to overdo it!

If your buyer asks directly why he should buy a house that has flooded before (and hopefully he won't!), simply explain what happened without being too alarmist: "We had an eventful winter last year when we got hit by two big storms in rapid succession." You don't need any more details than that unless they are directly related questions such as: "How bad did those storms get?" In which case maybe start looking into buying another property instead of trying yet again with this one!

CAN FLOOD INSURANCE HELP SELL MY HOME? HOW?

If you want to sell your home, then it's probably best to get flood insurance. Flood insurance will help protect your home from damage, and it can also help you avoid costly repairs that would otherwise be the buyer's responsibility. The last thing you want is for a potential buyer to balk at the idea of buying a house in a flood zone, then have them ask for their money back when they discover that their investment could be ruined by severe weather or rising tides. A good seller will make sure their home is as protected as possible before putting it on the market, so that any potential buyers know exactly what they're getting themselves into—and don't end up walking away from the deal because of unforeseen circumstances.

BEING HONEST AND UPFRONT ABOUT THE STATUS OF YOUR HOME CAN HELP AVOID DELAYS AND OTHER ISSUES LATER ON.

Whether you're selling your house because of its location or other reasons, it's important to be honest and upfront with potential buyers. Asking them to purchase a home that isn't in the best condition can set off a chain reaction of problems. It is also important to keep in mind where your property sits when considering the value it has as well as whether or not there are any additional costs associated with moving into this area.

When selling your house, honesty is key! Honesty can help avoid delays and other issues later on by allowing potential buyers to make an informed decision about whether or not they want to move into a flood-prone area of town. For example: "We've had flooding twice in the last ten years." Or: "Our basement leaks during heavy rains."

CONCLUSION

If you're looking to sell your house that's in a flood plain, you need to be prepared for the process. We've compiled a list of 10 things you can expect when selling your house in a flood zone. It’s important that you take each item into consideration as they may affect how much money you're able to get out of selling it (or even if anyone will want to buy at all!).