Selling a Flood-Prone Home
If the house you plan to sell is located in a flood plain, you have unique challenges.
But you also have some important selling features. Let's look at how you can minimize the downside of living in or near a flood plain so you can attract buyers.
Sell the location
Most people are naturally attracted to living near the water. Americans dream of a home at the seashore. They build vacation cabins on lakes and ponds. They buy homes near mountain streams and alongside rivers. This attraction is justified by the numerous benefits of living by water, including better health.
So, even though homes near water face the stigma of being "high-risk properties," there is a reliable market of buyers willing and able to own them.
You can make the most of your home's location by staging it to emphasize local color and what's unique about your area. Many people buy homes when they vacation near the water, so don't assume buyers will be local residents. Help them envision their new lifestyle in a new locale.
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| When you have a water view, capitalize on it by staging the vantage point, whether inside or outside your home. |
Mitigate problems
Rising sea levels, which increase the risk of flooding, are on the minds of many buyers. It's difficult to ignore news coverage of flooded homes and statistics like nearly 56,000 homes near the New Jersey Shore are expected to experience at least one flood event during the next 25 years.
But, there are things you can do to prevent or minimize water damage. You can work with a knowledgeable landscape company that understands the importance of drainage on your property. You can elevate electrical and HVAC equipment to reduce the risk of damage. If you have a basement or a crawlspace, you can reinforce your foundation and install sump pumps.
Typically, local authorities like emergency responders, insurance companies, and government workers offer advice for citizens living in a flood plain. Tap into these sources for digital or printed information you can pass along to your Realtor and potential buyers.
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| If you have waterfront property, it's an asset to have a strong seawall or bulkhead. |
Disclose everything
It's not just our coastlines that are at risk, the Great Lakes area, major and minor rivers, and navigable canals also flood. Heavy rains, poor drainage, and even nearby construction projects are risks. Buyers and their real estate agents who are aware of the possibility of flooding in your neighborhood will want facts about your area, and about your home in particular.
If your house has been flooded, be upfront about it during negotiations. Show buyers what remedies you have added to make it more resilient, such as floating/click-lock LVP flooring that can be removed, dried, and reinstalled. Or waterproof doors, seawalls, flood barriers, or landscaping adjustments. A back-up power generator is a real bonus.
Being upfront about the risk of flooding will build trust between you and the buyer during negotiations.
If your property is in a popular resort area, your buyer might have plans to use your home for short-term rentals using services like VRBO, Airbnb, and others. Let your buyer know if there are local ordinances prohibiting or restricting short term rentals, and what rents he can expect to charge.
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| Non-local buyers shopping online appreciate accurate and numerous photos before they travel to the area for a home tour. |
Reassure reluctant buyers
Buyers who expect a bargain because your home is in a flood plain might need to be educated. Your Realtor can point to statistics that specify the probability of your property being flooded. Local governments make these stats public information.
But your Realtor should also document for buyers how other homes in the neighborhood have appreciated in value over time.
There are ways you can emphasize special features of your home not affected by rising water. The sales copy on your online listing should mention perks like the view, boating and recreational access, good schools, access to shopping and restaurants, and even how many other homes have recently sold in the area for good prices.
A local Realtor can steer buyers to lenders with experience creating mortgages for houses in flood-prone areas.
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| A nautical chart like this one adds some local charm without being too cute or beachy. Photo: Nautical Chart Company |
Explain insurance info
Buyers who do not need a loan to buy your home may not understand the importance of carrying flood insurance. If they are getting a mortgage, their lender will require it. They may not know that most standard homeowners' insurance does not cover flood damage. When my home was flooded, FEMA rescued us financially. We were pleasantly surprised by how quick and cooperative FEMA was.
You can provide information from your regular home insurance company about low-cost options for water damage, including leaks from roof damage or a leaking water heater. Make sure buyers know that your property is not uninsurable. Emphasize that the right insurance policy buys peace of mind!
Get the look, get the book
Make it easy for buyers to be confident that your home is priced right and is in a secure location. With a few weather-smart upgrades, honest negotiations, and the right kind of homestaging, you'll convince them that the problems facing homes in food-prone areas are offset by the advantages of living by the water.
Get smart staging advice in my homestaging eBooks. You can download them now and begin getting your home ready for sale!
Top Photo: Cottage Fever Interior Design



































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