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Let’s talk about homes that are in flood zones. There are three things I would like you to consider:
1. How to find out whether the house is in a flood zone or not
2. Whether it affects the home value
3. How much flood insurance costs
Lastly, I’ll share my personal opinion, not a professional one, at the end regarding whether I would consider a home in a flood zone or not.
1. How to find out whether the house is in a flood zone or not
There are a couple of ways to find out whether a house is in a flood zone. One is through the FEMA map. If you see a range of areas marked with flood plain graphics, a “100-year flood zone” means there’s a 1% chance of flooding in any given year. In many cases, when securing a mortgage, the lender will require flood insurance. Sometimes, the listing agent will disclose this information, stating the additional cost for flood insurance that the current owner is paying.
Another method is by speaking with an insurance agent. Insurance agents typically have access to more detailed data than what’s publicly available. They can check specific properties when you’re shopping for homeowner’s insurance. If you’re obtaining a mortgage, flood insurance will likely be mandatory.
If you’re making a cash offer, you might overlook this requirement, but it could be a loss in the long run. You can also inquire with your agent, the seller’s agent, or the seller directly. Some states mandate the disclosure of flood zone status in the seller’s description form. As a seller, it’s advisable to disclose this information thoroughly to avoid legal issues.
2. Whether it affects the home value
Regarding whether flood zones affect home value, there’s no definitive answer. It depends on the buyer pool and their risk tolerance. Some buyers may be deterred if they discover a property is in a flood zone. Therefore, in my opinion, being in a flood zone can negatively impact home value due to a potentially smaller buyer pool.
3. How much flood insurance costs
As for the cost of flood insurance, it varies but typically ranges from $1,000 to $1,800 annually. This expense can be higher in areas prone to hurricanes, like Florida. Ultimately, whether you should buy a home in a flood zone depends on various factors.
Would I consider?
If the property offers desirable waterfront views and fits your lifestyle, it might be worth the risk, even with the additional insurance cost. However, for regular residential properties without waterfront appeal, careful consideration is necessary.
So, double check in a property is in a flood zone. If it is, make sure to consider the risks and the costs before making an offer.
I hope this information helps in your home buying process. I’ll include a link to the FEMA map for your reference. Thank you for watching, and feel free to share this video with anyone considering a home purchase. If you’re looking to buy or sell in Oregon, I’m here to assist with any questions.
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