Let me rephrase that...HELP! Flood zone advice! - Posted by Jennifer-NC

Posted by RichV(FL) on May 12, 2007 at 09:29:44:

Wayne,

You forgot terrorist attacks…but who’s counting. :slight_smile:

Invest on,

RichV(FL)

Let me rephrase that…HELP! Flood zone advice! - Posted by Jennifer-NC

Posted by Jennifer-NC on May 11, 2007 at 13:29:55:

My deal is in a flood zone and I didn’t know it! Need advice ASAP.

See previous post :slight_smile:
And disregard the question about the price of flood insurance.

Re: HELP! Flood zone advice! - Posted by Rich-CA

Posted by Rich-CA on May 12, 2007 at 24:00:27:

I would not buy it. Most lenders will require flood insurance, which if you decline would result in your not getting the loan. If you have a financing contingency in the contract, it might be an exit.

When dealing with anything connected with the Feds, remember that they are exempt from disclosing anything to anyone.

All bets are off! - Posted by Wayne-NC

Posted by Wayne-NC on May 11, 2007 at 16:03:26:

I live in a flood zone (whether it floods or not) and the mortgage company holds all the cards. Without insurance, the money will not flow. Also, are you a betting woman? If you flood in a 500 year zone, what are the chances that it happens again in your (or your mortgage whichever comes first) lifetime? Contact your local statistician. I’d play those odds. Sorry we missed you but it is perfectly understandable considering the circumstances. If you want to move to the OBX, that is something that you just have to get used to. Considering the prices around here, many have. The days that follow such an event are second to none! Please come again.

Flood zone advice! - Posted by Anne_ND

Posted by Anne_ND on May 11, 2007 at 13:51:31:

Jennifer,

Base your decision on facts, not emotions.

Flood zone, big deal. Can you buy flood insurance? I have owned 10 homes in a 500 year flood plain. All of them were sitting under water for a month 10 years ago today. Some of them are in a 100-year flood plain.

Your question is local to your market and flood zone. Presumably the houses on either side of this house are also in the flood zone, right? Have they sat on the market for a long time?

You need to understand the dynamics of floods in your area, and the impact that “flood zone” in your area would have upon a sale. In my area it’s nil, because everybody is in the flood zone, but no one is worried about the next flood, for good reasons. Housing prices have boomed since the last flood. But all of these are because of local dynamics.

What’s your market?

And yes, you should disclose about the flood zone to your buyer.

Anne

Let me rephrase that…HELP! Flood zone advice! - Posted by LK

Posted by LK on May 11, 2007 at 13:50:19:

The question should be when was the last time the area flooded enough to endanger your house. Sometimes the FEMA maps aren’t completely accurate. They can be amended but it is not an easy process. I have a house that borders a creek that is in a flood zone. It is very unlikely that it will ever come close to flooding, but I have to have flood insurance anyway. On the other hand , there are houses in flood plains that flood every 2-3 years.

I would suggest talking to neighbors and public officials that have been around a while to determine the actual risk. While being in a flood zone usually would lower the value some , it would depend on the risk.

In my case, it would not lower the value at all because it is in a lower income area and no one would ever guess it was in a flood zone. It just shows up on the FEMA map and the bank caught it, so it I had to get flood insurance.

Re: All bets are off! - Posted by Jennifer-NC

Posted by Jennifer-NC on May 11, 2007 at 21:58:05:

Well, I think I could get used to it…but in this situation, I wasn’t up to riding out a three day storm in somebody else’s house, when I was supposed to be on vacation, dude! That house was right on the beach w/ little to no dune protection, and I hear SNH got eroded pretty bad.

Yeah, I guess I panicked a little bit when I got that call today. It didn’t occur to me that alot of places are in flood zones, as is probably 25% of this town, and they still sell. And, yeah, I guess I am a betting woman. I’ll take those odds. I wasn’t so much worried about flooding again, as I was about not being able to sell the place.

I’ll come again. I always do.

Re: Flood zone advice! - Posted by Jennifer-NC

Posted by Jennifer-NC on May 11, 2007 at 21:51:15:

Thanks, Anne.

This house is at the end of a dead end street. Beyond that is a bunch of land owned by the power company, some woods, then the river. Looks like this house and the one beside it may have been flooded in '99 (but probably less than a foot of water). The house next door is apparently a rental, probably the only other one in this neighborhood. Somebody probably got it cheap after the flood.
And come to think of it, I bet 25% of this town is in a flood zone, considering what happened in '99. I suppose I overreacted a bit.

Re: Flood zone advice! - Posted by Jennifer-NC

Posted by Jennifer-NC on May 11, 2007 at 13:59:57:

I just talked to the insurance guy. The house is not in the 100 year flood zone, and the insurance is going to run only 150-200 a year. It would have flooded enough in 1999 after Hurricane Floyd to endanger the property (500 year flood), but the inspection was ok, the electrical was not new and was not damaged, which tells me that the water level didn’t get high enough for them to have to gut the house. This house is over a mile from the river, but there is a drainage ditch that runs behind and beside the property which could flood, I guess.

Thanks.

Re: All bets are off! - Posted by Wayne-NC

Posted by Wayne-NC on May 11, 2007 at 22:31:05:

I wrote this in a more recent post that also applies here,
"Everything is priced accordingly. This might be an over generalization but think about it for a moment. Given all known information to evaluate risk, markets are efficient. So, go make money."
Well, if it is not floods or hurricanes it’s earthquakes, tornados, wild fires, mud slides,gang violence, and tsunamis! Lets see, did I leave anything out? It’s all what you understand and are used to. Go invest accordingly. You’ll do fine. Till next time…

Re: Flood zone advice! - Posted by Rich-CA

Posted by Rich-CA on May 12, 2007 at 09:57:10:

Being a mile from the river is not a safe distance IF the land between the house and the river is fairly flat. I grew up in CT with a creek running behind the house. Most of the time the creek was about 3’ across and maybe a foot deep. After a couple of days of heavy rains the creek grew to about 100’ across and about 15’ deep, and the growth went up hill towards ours and the neighbors house. The real distance covered by water is based on how much drains into the river and how steep the climb to the property. If you’re a mile away and is up hill, should be no problem.