If you were one of the lucky ones who escaped relatively unscathed during Hurricane Harvey, there is still a chance that the Hurricane could affect your house, at least when it comes to the value of the property and selling the home. If you are considering selling, whether you were thinking about selling before the hurricane, or you are just now looking to relocate, it is important to understand just what type of affect the hurricane could have on your home.
Should You Sell Now or Wait?
Now that the hurricane is over and the flood waters have receded, it is time to sell your home. Or is it? Even though your home might not have been affected, other homes in the area certainly were, and this will greatly impact your decision on whether you should sell now or wait before you put the home onto the market.
When you are making your decision to sell now or to wait for a while before trying to sell, you will need to consider some of the broad effects that could cause issues with the sale.
The Stigma of the Flood Area
The memory of the hurricane is not going to fade away anytime soon. People who are from Texas, and those who are moving to the area, are keenly aware that there is a danger of massive storm damage and flooding in certain areas, and they will be cognizant of this when they are looking for properties to buy. If your home happens to be in one of the areas that saw flooding, or that was near flooding, it will reduce the number of buyers who are willing to even look at your property right now.
Flooded Homes in the Area Affect Value of Nearby Non-flooded Homes
In addition to many buyers not wanting to look at homes in areas where there were floods, the value of homes in these areas will be affected. If homes in the area were flooded, despite your home being safe, their lowered value will affect the property values of other homes in the area. This includes your home. Even if you are able to find people who might be interested in buying the home, they are not going to be offering top dollar.
It might not seem fair, but the price and value of other homes will affect your property, and this is one of the big reasons that many have decided to wait to sell their homes. It will take time for the market to start to get back to normal, and if you do not have to sell right now, it might be in your best interest to wait as well. This way, you will get a better price for your home, hopefully.
However, there are some properties that could still do well in this market, according to Bloomberg. Homes that are outside of the flood zone, and that are on an elevated piece of land, such as a hill, are seen as more desirable. People see these areas as being safe from flooding, and it is possible that the homes in these areas could actually rise in value. If you happen to have a home that fits those criteria, then you might want to consider selling if you can make a bit more on the property right now.
Buyers Have to Repair Their Existing Home
In addition, you will find that there are fewer buyers on the market at this time. Many of those potential buyers are dealing with their own flood issues. They are sorting through the mess of their own homes, and they have to spend time, effort, and money on making repairs. This effectively shrinks the market of potential buyers in the area by a substantial amount.
The Future Values for Flooded Areas Are Unknown
One of the other things you have to consider is the future of the flooded areas. Even when the flood water and damage has been repaired and is a memory, people will remember those areas that flooded before. They know that there is a risk to buying properties in those locations, and this has the potential to continually drive down the value of homes in those areas.
No one likes the idea of buying a home in an area that is known for natural disasters, as they imagine that there will be more flooding and damage in the future. It will still be some time before the market entirely settles and there is an accurate gauge of what will happen to the properties here.
Test the Waters
While many who are in areas that were affected by the floods brought on by Hurricane Harvey will want to hold off on selling their property for a while, you may still want to see what the market holds for you. You could consider marketing your property, and making sure the marketing clearly states that the home was unaffected by the flood. People will also want to have proof that there was no flood damage to the home before they buy. Never try to trivialize the situation, or hide the problem, if you did have flood damage, even if you have completed all of the repairs to the property.
Even though there may be fewer people buying, it is possible that they see your property as ideal. Just keep in mind if you are on a floodplain that the offers for the home right now might not be as high as you like or feel your property is worth. If that’s the case and you are unable to find good offers on your home, you can always take it off the market and wait before you sell it.
To get a better idea of your chances of selling your home for a good price now, or whether it makes more sense to wait and sell, you can get in touch with a real estate agent.