Selling Your Home After Severe Flooding
If you’ve recently endured significant flooding inside of your home, you have two options: sell the house or perform costly repairs. For many, the decision is easy. For some, there are a whirlwind of emotions, finances to consider, and long-term goals to think about. It’s a tough choice. If you do not have the money available today to perform repairs, selling is your best option. With water damage, the situation worsens over time. Within 48 hours, you’re looking at mold growth and weakened structural support. It’s often best to cut your losses and sell.
Selling a Flooded Home
In most cases, it will be a real estate investor purchasing your home if you choose to sell, but most real estate agents in the area will refuse to touch the property. Typically, a flooded home cannot obtain financing and is limited to cash purchases
After the sale, the investor will bring in a contract team to perform all the necessary repairs. Often, the entire house is gutted.
To ensure your flooded home is more attractive to an investor, and to earn a little more on the offer, you can complete a few minor tasks:
- Ensure all molded materials are removed from the house.
- Sweep and vacuum the interior.
- Clear the front and back yard of debris.
Understanding the New Value
There is a common misconception surrounding the post-flood value of a home. Most homeowners believe their house is worth what it was before the disaster minus the repair costs. Unfortunately, that’s not the case. After a flood, the property has decreased in value. An investor is putting in their time and taking on a lot of risk by purchasing the lot. As such, investors generally take 10-20% off the pre-flood value for renovations. You’ll still receive quite a bit of money, however.