Two words that, seam to strike fear in some buyers! First
let’s face the facts, just because a house is in a flood zone, doesn’t mean
it’s going to flood! The flood zone means there is a potential of a higher risk
of flooding. Because of this potential "HIGHER RISK”, supplemental insurance is
required to protect the home if damaged by flooding.
The flood zone is determined by FEMA. FEMA calculates
flooding risks by looking at 100 year flood cycles and 500 year cycles and then
rates the area according to these cycles. From time to time FEMA re-evaluates
and re-maps areas, which just happened this passed June in Waltham. After the re-mapping, a lot of home
owners who once were not in flood zones found themselves now living in flood
zones.
As a result of the re-mapping, mortgage companies/lender
and/or banks started to check on current loans to see if the property was now
situated in flood zones. If so, they would send a letter to the homeowner
instructing them, they are now require to have flood insurance.
If you are looking to buy and you find a house in a flood
zone, please don’t disregard it, do a little homework and ask a lot of
questions. If a home has had flooding issues in the past, find out what
precautions has the homeowner made to ensure it won’t happen again. Did they
install a French drain or other water mitigation systems? Find out the cost of
the insurance also. Most insurance companies can give you a quote based on the
listing sheet information. This insurance can be pricey.
If you are a home seller and your home is in a flood zone,
this could effect price a little, but it will affect saleability. If you
own a home in a flood zone, price accordingly and be prepared to negotiate.
Being creative in your marketing can help too. Lastly, always disclose,
disclose, disclose. Make sure you tell the buyer everything you know. It will
make for a smoother transaction.
Find out more about FEMA and look at flood zone
maps http://www.fema.gov/hazard/flood/info.shtm
Tags:
Flooding , flood , Waltham , realtor , real estate
Kenneth Brown
