As any real estate agent will tell you, selling a flooded home can be difficult. There are unique considerations that accompany selling a property with water damage. Below are a few questions to consider before putting the home on the market, along with some common challenges that you might face. 

What to Ask Yourself Before Selling a Flooded Home

Do You Have Flood Insurance?

When your home is insured for flood damage, you need to go through the claims process before you consider selling. Find out how much you can get for home repairs and personal belongings, as well as whether or not you have any ancillary coverage.

It can take up to two weeks before an insurance adjuster can assess the home’s damage and three to five more weeks before the quote is returned. Should you decide to sell, work with a real estate agent that understands claims coverage.

Do You Have Home Equity?

You have more choices if you have significant equity. Equity is the difference between the value of the home and the amount you owe on it.

If you have a good deal of home equity, you may be motivated to sell without making repairs or using flood insurance coverage. To be sure you’re making the right decision, compare the total cost of restoring the flooded home with selling it at a discounted rate.

What Are the Challenges of Selling a Home With Water Damage? 

Price

If you decide to sell your formerly flooded home, you can either restore it to its former glory or sell it as-is to a buyer looking to take on a renovation project. If you choose the latter, an interested buyer will purchase with the intent of investing a large sum into the property and may want to take that amount off the offer, which would leave you with less profit.

Likelihood of Future Damage

If your home floods once, it has the potential to happen again, especially if you live in a flood zone. Buyers will be aware of this and will likely proceed with caution before making an offer. This makes it unlikely that you will get the asking price that you want.

Health & Electrical Concerns

Flooding can affect a home’s electrical system, which adds to the cost of repairs and even poses a security risk or fire hazard. Water damage may also lead to mold growth, bringing up health concerns for residents and additional expenses to eradicate it.

 

If you need help selling a previously flooded home, reach out to the experienced real estate agents at Guru Management, LLC. Located in Houston, TX, this property management company has been providing real estate consulting to residents of the Houston Metro area since 2015. With experience in house flipping and rental management, they’re here to guide you through the selling process and make you as much money as possible. Schedule an appointment today by calling (713) 447-2552.