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2007-12-17 17:36:10 · 5 answers · asked by burlingtony 2 in Business & Finance ➔ Renting & Real Estate
I don't know about the exact amount but I can say pretty substantial. My best friend used to work for First American Data services is is THE company that banks use to determine if an address is in the 100 year flood plain. The bank doesn't get a yes or no until they verify that information. I also know that people lost their jobs at that company when the floods hit South Carolina in the 90's. Many houses that they cleared were actually in the flood plain and it cost the bank millions...So it is very substantial. On the other hand, it depends on the location as well, if its a nice house people will pay the flood insurance and still pay premium for the house.
2007-12-17 17:42:37 · answer #1 · answered by lovemarley1992 2 · 1⤊ 0⤋
Requiring flood insurance is normal. There are a lot of towns in a flood zone. Any time you build below a dam area it is considered a flood zone.
Houses will sell for what the sell for. The area will all depend on how bad the flood zone is. If it is around a major river that has been know to over flow then your insurance will be real high and the home values will be low.
2007-12-18 01:53:11 · answer #2 · answered by Big Deal Maker 7 · 0⤊ 0⤋
I sold a house, that was in a flood zone , to a good friend. He wanted the house anyway. I told him of all the problems that I could think of , the insurance fees, the fact that it had flooded at one time into the house, mold in the crawl space under the house, mold in the house, a musty odor in the house, problems for my friend when he wants to sell the house.
Also, problems in getting regular insurance for the house.
After, all of these items were explained , I clearly stated them in the sales contract. He still wanted the house, and it did not sell for less because of the flood zone.
We are still friends.
2007-12-18 09:00:38 · answer #3 · answered by johnn d 2 · 0⤊ 0⤋
There is a definite reduction in value and market price. Given that costs for NFIP insurance (mandated) in a 100 year flood zone run upwards of $750 per year, such additional cost is reflected in the eventual sale price. In my market, buyers tend to consider how long they intend to remain in the property before reselling, and factor those costs into their offers.
2007-12-18 07:54:22 · answer #4 · answered by acermill 7 · 0⤊ 0⤋
It may depend on where you live because in Florida everybody probably have flood insurance.
2007-12-18 12:48:20 · answer #5 · answered by Grimey 3 · 0⤊ 0⤋