Sandy and South Shore home values/sales (New York, Rotterdam: how much, house)

[nassau123]

has anyone tried to get a home owner policy for those houses?

One week ago i knew someone had to pay $5500/yr to insure a $700k home alone the coast line in north shore, not even in flood zone. And none of the big ins. companies won't even insure him.

Even if people forget it quickly, ins. companies won't.

So for those buyers and sellers out there, do your homework. Make sure you can secure a policy with a reasonable premium before signing contract.

[VanillaEps]

If you're not in a flood zone, but want security, it may be very difficult.

However if you're in a flood zone, I'm pretty sure you can't be denied flood insurance coverage.

[Taz Crazy]

The floods will get worse. The army corp of engineers dont even want to fix the fire island break. The government says "LET NATURE TAKE ITS COURSE".so...prepare for another flood people.

[nassau123]

the $5500 is *not* flood insurence, just a regular home owner policy.

the FEMA flood is qutoted for another $500/yr.

so ins. cost is a big factor now for those homes close to water (< 500 feet), even if they are not in flood zone.

[SYPPKathy]

Originally Posted by Elke Mariotti

If your decision to sell is made and your house is "ready", I suggest you don't wait till Spring.

Why not be a "big fish in a little pond" rather than a "little fish in a big pond"? Inventory is lower now but usually increases as Spring approaches.

I think I will take your advice....I have just hesitated, as we have a 4/5 bedroom house, and figured that most people who will be looking for a house this size will be a family w/children, and they tend to look in the Spring so they can buy/close when school is out in Summer - but I guess you never know. Thanks for your help.

[longislander2]

Originally Posted by nyliguy

Home values will most likely increase in the areas, north merrick road. That's just my opinion but people looking to get out of homes south and move to north are going to drive prices up.

I already know people south of merrick/montauk that have already went out looking at homes north of the flood zone.

I used to live in Merrick -- a great community -- and I'm sad to see this happen. I wonder, though, if it's going to be any more prudent for people to move just north of Merrick Road or Sunrise Highway. Homes up there share the same tax base/school district with those in the south. If homes in the south drop in value and are reassessed downward, someone's going to have to make up the shortfall in school taxes. It's not unusual to go into Merrick Woods, for example, and see modestly priced homes with taxes already in the high teens or $20K range. Imagine if those homeowners are asked to make up the shortfall.

[hotkarl]

Well, we figured that because we wont be able to sell and we are stuck here that due to the imminent flooding that will occur more frequently, we decided not to bother fixing our house. We let everything dry out and cleaned it with bleach. We picked up used appliances. We will use our insurance money to cover our flood policy because everyone says it is going to become unaffordable. Yeah so basically we will bank the insurance money to cover all the expense increases that will happen now. Hopefully we will be able to have enough put aside to replace our cars and appliances after every flood.

[SouthBound3]

There were rather lengthy threads on this topic just after Sandy. I'm not sure the prices of homes ON the water will change all that much. It seems to me - and is evidenced by some of the comments in this thread - that there will always be people who will be willing to absorb the premium (cost of housing, insurance, risk of loss) for being ON the water. I think the homes that will have their values negatively affected are those NEAR the water - but not ON it (ie: south of Montauk Highway). Personally, I never understood the benefit of being NEAR the water as it seems to me a homeowner NEAR the water accepts almost all the risk of a homeowner ON the water (with respect to flooding and related damage) but reaps very little (if any) of the benefit. Now - given the increase costs of insurance AND the increased probability of the homeowner sharing in the risk of a future loss - you would have to assume a rational, non-emotional buyer would just look somewhere else - forcing sellers to lower prices to attract buyers.

[rubygreta]

Sandy was a once in a lifetime storm - it turned sharply to the left because of a very unusual atmospheric condition, and arrived at high tide during a full moon. Had it arrived at low tide with no full moon it would have had minimal impact.

I guess you have to play the odds. What are the chances of a similar occurrence?

[Quick Commenter]

Originally Posted by SouthBound3

There were rather lengthy threads on this topic just after Sandy. I'm not sure the prices of homes ON the water will change all that much. It seems to me - and is evidenced by some of the comments in this thread - that there will always be people who will be willing to absorb the premium (cost of housing, insurance, risk of loss) for being ON the water. I think the homes that will have their values negatively affected are those NEAR the water - but not ON it (ie: south of Montauk Highway). Personally, I never understood the benefit of being NEAR the water as it seems to me a homeowner NEAR the water accepts almost all the risk of a homeowner ON the water (with respect to flooding and related damage) but reaps very little (if any) of the benefit. Now - given the increase costs of insurance AND the increased probability of the homeowner sharing in the risk of a future loss - you would have to assume a rational, non-emotional buyer would just look somewhere else - forcing sellers to lower prices to attract buyers.

Agreed, the market is in the toilet in any case so those folks in the previous threads were grasping at straws when they said Sandy would help the housing market on Long Island. And to your last point, many sellers are not rational and don't recognize the market when it speaks.