Fate of Flooded Homes (Howe, Buffalo: for sale, real estate, rentals)

[snackdog]

Seems like a huge number of homes flooded by Harvey have had everything ripped out and now are for sale online at small discounts. A zillow search shows 3000 for sale units with mentions of Harvey. It is obvious which houses they are because the drywall is still cut out in all the photos. Who on earth would buy a house that flooded? Chances are significant they will just flood again in a few years (despite the 1000 year flood claims by experts).

I guess what will happen is a speculator will buy the house once the price gets low enough. The speculator will paper over any evidence of flooding then hope to sell it to some unsuspecting buyer with a claim that it never flooded while she owned it.

Or is there a web site with every address which had more than an inch of water inside? Will insurance or title companies inform prospective buyers if a house flooded during Harvey or Allison?

Thanks

[lhafer]

I going to guess that people will by these at a discount and then have the home raised to help prevent futire flooding.

[jfre81]

Originally Posted by lhafer

then have the home raised to help prevent futire flooding.

To send the next flood to the next neighborhood!

[elnina]

When purchasing a home, it is always a good idea to obtain a CLUE report. This is a report prepared by insurance companies and other companies (you can check for these online) that lists all insurance claims on the property for the past seven years. The claims history is obtained by looking at the Comprehensive Loss Underwriting Exchange (CLUE, and thus, the name of the report). However, if a homeowner made repairs from flooding without filing a claim, then nothing about that incident would show up on the CLUE report.
https://www.houstonchronicle.com/bus...e-12260162.php

If repairs have been made, the property condition has been resolved, and there are no other known issues from prior flooding on the property, there’s no legal obligation for a Realtor to disclose prior flooding from a property condition, but a honest Realtor should follow Code of Ethics.
Article 12 says REALTORS® should be honest and truthful in their real estate communications and present a true picture in their advertising, marketing, and other representations.

Also seller who fail to disclose such vital information in the Seller's Disclosure, can face a law suit for doing so.

However in buyer own interest is to have home throughout inspected by licensed professional, before transaction is finalized.

Another really good way to know if a home has flooded is to talk to neighbors on the street.

[oceangaia]

An investor might buy them as rentals.

Because the home flooded once doesn't mean it will flood again soon. There were previously flooded homes that remained dry in Harvey. It's all about rainfall patterns and flood control measures.

In most cases, you can still get flood insurance. And if you know a home is at high risk you can mitigate much of the damage with flood-resistant materials. Raising a home is expensive but raising the water heater, AC condenser, and other key items may be more cost effective.

[westres1]

Many of those homes for sale as is were flooded by the dam release and are not in the floodplain.

[jfre81]

Originally Posted by westres1

Many of those homes for sale as is were flooded by the dam release and are not in the floodplain.

I wouldn't consider that a selling point by any means.

[westhou]

Originally Posted by jfre81

I wouldn't consider that a selling point by any means.

Definitely not a selling point. It almost makes it worse. Not only are those people vulnerable to Buffalo Bayou but also the dams which the city can open to flood them whenever they see necessary. That's far more scarier.

[jfre81]

Originally Posted by westhou

Definitely not a selling point. It almost makes it worse. Not only are those people vulnerable to Buffalo Bayou but also the dams which the city can open to flood them whenever they see necessary. That's far more scarier.

The worst thing about it to me is we have been warned what would happen. And this was a deliberate release to prevent a full-blown failure.

[gwarnecke]

My neighborhood was flooded by the dam releases. We own two homes here, one of which took on water.

The good news is that lots of owners, especially younger couples and families, are rebuilding and plan to move back (or have done so already).

The bad news is that the few homes that have already been rebuilt and put on the market are attracting very little interest, even at prices that I would in some cases consider excellent. I think our area will be known as “the reservoir release zone” for some time to come.

The weird news is that flooded homes are still being snapped up like hotcakes by investors, in some cases at absurdly high prices. They’re going to get caught with their pants down unless the market for rebuilt homes improves dramatically in the next six months.

Our flooded house (nearly finished rebuilding) is a rental, so we’re not too concerned about values over the next few years. But for the sake of the neighborhood’s character, I hope it does bounce back. It would help buyer perception of the area if the third reservoir gets approved and/or bayou improvements are made.