Honest information sells homes in flood zones
Sellers aim to present their home in its best light. So, it’s only natural that if a home is in a flood zone, sellers hope that fact escapes notice.
Counterintuitively, real estate agents say buyers are reassured with information about the risks. For one thing, if an unsuspecting buyer does fall in love with the home, he’ll soon hear about its flood zone status when he seeks a mortgage.
Lenders routinely consult federal flood maps and require flood insurance homes in hazard zones.
Still, sellers and agents sometimes don’t disclose flood hazard status. That can derail a sale “because of the cost of the insurance,” says Joshua Jarvis of Jarvis Team Realty in Duluth, Georgia.
Rather than lead an unsuspecting buyer on, sellers should “provide as much information as they can,” says Jason Gelios of Community Choice Realty in southeast Michigan.
Consult an insurance agent for quotes on flood insurance on the property to give buyers an early view into costs, suggests Scott Johnson of Marindependent Insurance Services in the Bay Area.
Buyers expect waterfront homes to carry higher flood risks, and “consider that flood insurance is just one other expense of owning,” says John Kilpatrick, a real estate author and owner of a home in Key West, Florida.
While the lake or ocean proximity can outweigh insurance and flood worries, buyers in other flood-prone areas ultimately weigh the risks against the home’s appeal.
“It took us doing three weeks of research to even feel comfortable putting an offer in,” shares Sheila Catalin, who recently purchased a home in Northfield, Illinois, with her husband.
“We contacted the village and asked about infrastructure improvements and plans to prevent flooding. We also spoke to five neighbors.”
The sellers had also installed an emergency generator that would keep a sump pump running during a power failure,and a drain in the backyard.
All that reassurance, plus the great parks, schools, and neighborhood gave them the confidence to buy, Catalin explains.