If you own a house in Houston that has flooded, you may wonder how to sell it despite its condition. Flooding can cause significant damage to a property and make it difficult to attract potential buyers. However, options are available to sell a flood-damaged home in Houston. This article will discuss three ways to sell a house that has flooded in Houston. By exploring these options, you can make an informed decision that is best for your unique situation.
Fix vs Sell a Flood Damaged Home in Houston, TX
Money is often the primary factor in deciding whether to fully restore a house after a house flood. However, the emotional toll it may take on the homeowner is also important to consider. In case of damage due to flooding, the availability of flood insurance can make a big difference. Depending on the location of the property on the Houston area flood map, the insurance might be obtained through a private carrier or directly through FEMA. Our Flood Insurance Explained guide can be used as a quick reference to quickly get caught up to speed on flood insurance. It’s crucial to understand the difference between the two options before deciding.
Considerations for Fixing Water Damage and Staying
When deciding to fix and stay in a flood-damaged house, the possibility of future flooding is a concern for many homeowners. While it can be difficult to predict how often flooding occurs in Houston and when it might happen again, it’s important to consider the location of your property. Your home could be situated in a 500-year flood plain or just outside a flood-risk area, but this doesn’t guarantee immunity from flooding. Regardless of what you choose to do the more information you have on flooded house repairs, the better.
Repeated Flooding is Possible
Unfortunately, areas in Houston, including those near the medical center, have experienced repeated floods that were not expected to happen, such as during the Tax Day and Memorial Day floods. The emotional toll of fixing a flood-damaged home is significant, and the prospect of dealing with future flooding can be overwhelming for some Houston residents.
Considerations for Fixing to Sell a Flood-Damaged Home in Houston to a House Buyer
Homeowners who have successfully filed an insurance claim to repair their flood-damaged property but do not wish to stay often consider selling it. This is because they assume that finding a buyer willing to purchase a damaged house as-is is difficult, which is generally valid from a traditional real estate market perspective.
Plumbing System Maintenance
If you plan to sell your flood-damaged Houston property, there are a few things to consider to recover its value and make it attractive to potential buyers. First and foremost, it’s essential to have a professional inspect the plumbing system to ensure there’s no future risk for the buyer, especially if the property is old and the plumbing system has not been maintained.
Mold Inspection and Remediation
Mold is another issue that could significantly detract from the property’s appeal to buyers. Having the property inspected for mold and hiring a professional to remediate any present mold with proper documentation is crucial to its resale value.
To help reduce the likelihood of future flooding, consider flood-proofing the home by renovating windows, and doors, and improving grading for elevation. Many homebuyers prefer to purchase a property that is move-in ready and does not have the funds or desire to renovate a flood-damaged home.
Does it Always Make Sense to Fix Before Selling a Flooded Home?
While repairing your flooded house with the intention of selling it may seem like a good idea, it is not always wise. We have observed this over the years and why we advise against this approach.
Potential homebuyers in Houston will almost always check the flood history of a property before making a purchase, regardless of how well the newly restored house appears during an open house. Furthermore, certain parts of Houston are known to discourage homebuyers even if the property has only flooded once, while other areas of the city are more attractive even if the house has flooded three times before.
Before investing time, effort, and money into repairing your flooded home for resale, it’s crucial to be well-informed. It’s essential to understand your options for a realistic “exit strategy” when you are required to disclose the flood history in the listing. Many people have made the mistake of not being prepared and have suffered the consequences of their flooded houses.
In Houston, some home sellers have faced reduced prices unexpectedly due to their property’s flood history. For instance, an energy executive in Bellaire had to reduce his asking price by nearly $400,000. Thus, it’s essential to research your options before fully restoring your flooded home for resale. You might discover that other alternatives are more suitable. Consequently, some people consider selling their homes for cash to avoid renovations altogether. We’ll cover the cash buyer option in greater detail later on.
Property Not Insured for Flood
It’s possible that your property was never insured due to an oversight. Sadly, many property owners have learned this lesson the hard way: flood water is typically not covered under the average homeowner’s insurance policy.
In fact, underinsurance is perhaps the second most devastating factor after the waters recede. As reported by USA Today, only 2 out of 10 people were insured during Hurricane Harvey. Even if the property is deemed insurable but located in a flood-prone area, the cost of the insurance premium might be too expensive after a tropical storm.
For this reason, houses in flood zones are often self-insured.
However, the cost of fully repairing a home after a flood might far exceed your budget, and borrowing enough money might be unrealistic or unattainable. This leads us to one of the most realistic options for flood victims: what are the chances of finding a homebuyer for flooded homes?
Can You Sell a Flood-Damaged House AS-IS?
One option you might consider is selling your flood-damaged house to a cash buyer as is, which means without making any repairs or renovations.
- Speed: Cash buyers can close the sale of your home quickly, often in a matter of days, which can be important if you need to sell your home quickly due to flood damage.
- Convenience: Selling a flood-damaged house can be a hassle, and repairs can be expensive. Selling to a cash buyer as is can be a more convenient option, as you won’t need to spend time or money fixing up the house before selling it.
- Reduced stress: Dealing with flood damage can be stressful enough without the added burden of trying to sell your home. Selling to a cash buyer as is can help reduce stress and simplify the process.
- Avoidance of additional costs: Making repairs and renovations to a flood-damaged house can be expensive. Selling to a cash buyer as is can help you avoid these extra costs and expenses.
Overall, selling a flood-damaged house to a cash buyer as is can be a convenient, stress-free option that allows you to sell your home quickly without the need for costly repairs and renovations.
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We are Good Deed Homes, and we are a real estate solutions company based out of Cypress, TX. We’re a family-owned business with a focus on helping homeowners like you find solutions to any problem. If you have a need to sell a flood-damaged home in Houston, Good Deed Homes can help. We buy houses in days – not months.