How much does flooding devalue a house?
Experts agree that flood events will hurt your property value. For homes that have flooded, even if they’ve been renovated, Kinne has seen a 20% to 30% reduction in value.
The level of property devaluation can vary depending on the severity of the water damage, the overall impact, the type of repairs that were needed, the home’s location, and the potential for future flooding.
Should I try to repair the damage, or should I sell my house?
If you decide to sell your flood-damaged home, you do have options. You can make necessary repairs, sell a damaged but inhabitable home “as is” to a cash investor, or, if it’s uninhabitable, sell the property your home sits on.
When determining whether to repair before selling, consider the following scenarios:
If you can afford repairs
Flood remediation and repairs may be covered by flood insurance, or you may be eligible for a Federal Emergency Management Agency (FEMA) grant or a home repair loan from the Small Business Administration (SBA). If not, and you have the financial means to do so, it may be worthwhile to remediate, clean, and repair your home.
Due to safety risks to the clean-up crew and future residents, cleaning and remediation are best left to licensed professionals. If you choose to clean and repair your home yourself, refer to the repair section below.
If repairs are beyond your ability to finance
If your home is too costly to repair, you may choose to sell it as-is, or it may be possible to live in it safely. For example, a damaged structure may take years to pose a safety risk. According to Rubino, if water damage is not remediated within 24 to 48 hours, you must assume it has mold damage and is therefore uninhabitable.
If your home is absolutely uninhabitable
If flood damage has rendered your home completely unfit for anyone to live in, you may still be able to sell the home as-is to an investor who can make repairs, or you may be able to sell the property that your home sits on.
If, however, your home is uninhabitable and irreparable, it’s only a matter of time before it is condemned, seized by the government, and demolished. In this event, the government may reimburse you for the value of the land, less the cost of demolishing the structure.
Is it hard to sell a flood-damaged house?
How difficult it will be to sell a flood-damaged house depends on the extent of the damage, future flooding risk, and your willingness to negotiate. The first step is to contact a local real estate agent who has experience selling a water-damaged home. Having an expert in your corner will make the process of selling your home a lot easier.
How to sell a flood-damaged house
Selling a flooded house isn’t easy. Buyers worry about damage, mold, and the chance of it flooding again. Plus, higher insurance costs can scare people off. But it’s not all bad news. With some honest communication, proper repairs, and a proven agent by your side, you can still find the right buyer for your home.
