- April 11, 2022
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If your home has a history of flooding or is flooded as you are reading this article, you may be wondering what the chances of selling it are. Although it’s definitely possible to find a new owner for a previously flooded home or sell it to a cash buyer, the process may not always be straightforward. In this article, we share with you a guide on selling a flooded house.
Take Timely Action
How long has it been since your home was flooded? If it happened months or even years ago, there may not be much you can do about it now as long-term damage has already been wrought. However, the best course of action when your home floods is to address any problems as quickly as possible. This will help to minimize any long-term damage and monetary loss to you. You will also want to get evidence of the damage caused when it comes to filing an insurance claim.
Always Disclose Flooding History
Even if you have carried out the necessary repairs to make your home habitable again, it’s wise to disclose its flooding history to any prospective buyers. Depending on the state you live in, estate disclosure laws can mean this is necessary anyway. Even if it’s not, letting the new homeowner know about the scope of the damage can help you avoid legal issues down the road, especially if an old problem resurfaces.
Be Prepared to Settle for a Lower Price
This may go without saying, but you cannot expect to receive market value for your flood-damaged property, especially if you don’t intend to carry out the full range of repairs. If you are selling it on the open market, you may opt to carry out the most impactful repairs, such as replacing carpets and tackling any mold problems but stop short of doing everything. When selling to a cash buyer as is, you can expect a lower offer as they will deduct the cost of remediation and repair works from any offer they make.
Gather Documentation as Proof
When selling a flooded house, you will need to get together all the documentation that can prove what happened. This will include the bills you have spent on repairs and remediation, the picture evidence you took when filing an insurance claim, the insurance claim itself, and more.
Never underestimate the difference proper documentation can make. For instance, properties that sit higher than Base Flood Elevations (BEF) can come with a higher flood insurance premium. As such, having an elevation certificate can make a difference in the selling price of your house.
Sell to a Cash Buyer
Wish to bypass the hassle of carrying out the necessary repairs, or simply don’t have the luxury of time to attend to it? Why not sell to a real estate investor, also known as a cash buyer? You can sell your property as it is and retain the flexibility to retain your own closing. At the end of it, you walk away with a fair cash deal without any of the hassles!