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NO. I do not recommend anyone buy in a flood zone. We have areas that require the costly insurance despite the fact that is has not flooded there in 80+ years.
Flood insurance has a huge impact on real estate in our area.
Yes, and getting more expensive.
This is a hugh problem in my city. One of our nicknames here is the 7 rivers region. La Crosse is built on three rivers, Mississippi, La Crosse and Black Rivers. I've seen beautiful homes that just can't sell. Homes in the flood plain have to really reduce their price in order to attract a buyer. The problem is so severe that the city is looking into ways to help mitigate the damage on home values. They haven't come up with a hard plan yet
I never recommend to my clients that they buy a home in a flood zone requiring flood insurance... hellishly expensive.
Jill Murty, Realtor - ...
Laguna Niguel, CA
not in my area, but I know of other areas, especially on Cape Cod where the figures are astronomical!!!!
We don't routinely have to deal with flood insurance in the Williamsburg area.
Michael J. Perry No, a friend purchased a home in Florida and was shocked at the high cost of flood insurance premiums.
That issue applies to 70% of the real estate sold in beachy Florida. The good news is 60% of homes are sold CASH.
The buyers are sorted by how far inland they want to be.
Then the seller waits for the buyer who can afford to live their.
Price compresses the time for those who allowed wait time to be a player.
Yes, it is an issue. Rates are allowed to increase 25% a year. Who wants to live with such balloon that could occur at any time.
I have had two and have a listing that will not drop the price!
Yep! We have a LOT of floodplain properties and if they are not properly graded and possess elevation certificates, the cost of flood insurance can be astronomical. In one very desirable subdivision of acreage homes, quite a few were built on ungraded lots that are below base flood elevation. Flood insurance can run 1500 to 3000 annually . . . and it doesn't rain that much here. But when it does, we do get flash flooding. So it's hugely material. But despite that, the turnover in that subdivsion is very low and prices stay good. A lot of owners opted for manufactured homes built on raised foundations in that area, and they're golden. Those flood riders are insanely low - like under 100 a year.
I have not experienced that situation.
We do not have many areas that are in a flood zone, so not a huge deal here. Flood insurance is costly!
Good morning Michael. I have seen many transactions blow up because of flood insurance, the result will often mean a lower price for the seller.
Michael J. Perry I do recommend my buyers to stay away from homes with high flood insurance.
So yes, this is likely to happen.
I have not and so glad. In fact I haven't sold a home in a flood plain in several years.
My banker told me a while ago that they will never finance anything in a floodplain again, not worth the pain they go through with the feds.
So far I have not has a flood insurance issue.
No that does not happen much here.
I had one in the flood plain, but it didn't really have an impact
This has been an issue in FL for quite some time now.
I haven't handled any properties with flood plain issues in a long time, but I really don't have a problem with having the people who choose to live on a river pay for the risks of flooding, rather than have them be subsidized by tax-payers. And the risk of being underwater (literally) isn't that appealing when there is a high dollar value placed on it, in addition to the mess that Mother Nature can create.
My father was a hydrologist with the US Geological Survey, and at the end of his career, he was sort of the King of the Floor Plain Maps. I remember, as a little girl, hearing him rant about new luxury homes backing up to a beautiful country club, but with a creek that flooded regularly in their back yards and basements. And what really annoyed him was the builders could sell these homes with federally insured loans and heavily subsidized flood insurance. His views have probably colored my own.
The people who worked on the maps need lessons I developing maps.
No, not in the Midwest market.
We are in a drought season and the insurance company needs these flood zone dynamics to make a buck or two extra...The fact is, that the majority of homes in certain places just don't have flood issues even if in a potential zone
This does not surprise me. We are all in store for another financial assault by insurance companies. I have not had any listings experience that....yet!
No, thankfully no issues for me
No. Home buyers need to be alert for these risks.