Sandy and South Shore home values/sales

[hotkarl]

I've been watching the market like a hawk.
My house is going on the market in the spring.
Prices are up, inventory is moving nicely, even in flood zones.
At first I would have been happy to at least get what I paid for it.
Now it looks like I might even make a profit or break even with renovations and upgrades.
The thing that sucked was renovating and then having to do it all over because of Sandy but at least that was a break even with the insurance covering the restoration.

Prices are not back up to pre bubble burst but they are trending upwards. For now.

[DisneyMcFamily]

I'd never buy where Sandy hit, but a lot of people seem to be jumping at the renovated homes despite the chance of future flooding and/or flood insurance spikes.

[SandyJet]

Originally Posted by DisneyMcFamily

I'd never buy where Sandy hit, but a lot of people seem to be jumping at the renovated homes despite the chance of future flooding and/or flood insurance spikes.

Because it makes economic sense. Plus you are closer to beach. And some of us me included won a few big tax grievances.

To get out of flood zone in an equivalent all redone house you have to pay up to 200K more for house and at least 6k more in taxes.

The respective flood properties or houses that are being forced to raise are not selling. But a newly renovated house with low taxes only damaged in Sandy that gets to keep its subsidized flood policy near me sells in around 1-30 days. Some the listing goes up and down same day.

Two income younger couple sin particular grab them. The 700K house with 16k in taxes with dated bathrooms and a run down kitchen outside flood zone compared to the same sized home at 500K all brand new with 8K in taxes folks will risk the flood. Heck as long as they keep cheap flood they are not risking the flood the taxpayer is.

And NY rising in one way encouraged more risk. I would say 40% of folks in my area had no flood insurance. That 40% used FEMA/NY Rising money rebuilt and now are forced to buy full flood insurance forever as a condition. They are in completely remodeled homes and if there is a next Sandy almost 100% have insurance now.

I had three young couples buy on my block in last three months. There monthly payments are a complete joke. Even if home never appreciates or gets flood again in 20 years they are way ahead of game.

One couple got a 400K redone home with 7500 in taxes a few months ago. if they put down lets say 200K the mortgage is only around 700 a month plus taxes of around 625 a month for a total of $1,325 a month


With their 200K budget outside the flood zone house would be 600K, they would have to set aside at least 30K for repairs before move in as those houses are dated old so we are talking only a 170K downpayment. So a mortgage of $430K which is a $1,430 mortgage a month plus taxes of around at least $1,000 a month. So $2,430 a month. House would have to rise in value an extra $1,000 a month every month for next 30 years for it to be a better buy.

Plus my house you don't really need to budget for big repairs as much. I have all brand new mechanicals good for 30 years. Only way you have to replace them is in a flood and FEMA pays.

Also my heating bills fell a lot after Sandy Brand new system and I re-insulated the whole lower level. when I had the walls down.

Yes you have the risk and yes if a another Sandy hit in next five years it would be a killer. But it is not a stupid risk.

[DisneyMcFamily]

Originally Posted by SandyJet

Because it makes economic sense. Plus you are closer to beach. And some of us me included won a few big tax grievances.

To get out of flood zone in an equivalent all redone house you have to pay up to 200K more for house and at least 6k more in taxes.

The respective flood properties or houses that are being forced to raise are not selling. But a newly renovated house with low taxes only damaged in Sandy that gets to keep its subsidized flood policy near me sells in around 1-30 days. Some the listing goes up and down same day.

Two income younger couple sin particular grab them. The 700K house with 16k in taxes with dated bathrooms and a run down kitchen outside flood zone compared to the same sized home at 500K all brand new with 8K in taxes folks will risk the flood. Heck as long as they keep cheap flood they are not risking the flood the taxpayer is.

And NY rising in one way encouraged more risk. I would say 40% of folks in my area had no flood insurance. That 40% used FEMA/NY Rising money rebuilt and now are forced to buy full flood insurance forever as a condition. They are in completely remodeled homes and if there is a next Sandy almost 100% have insurance now.

I had three young couples buy on my block in last three months. There monthly payments are a complete joke. Even if home never appreciates or gets flood again in 20 years they are way ahead of game.

One couple got a 400K redone home with 7500 in taxes a few months ago. if they put down lets say 200K the mortgage is only around 700 a month plus taxes of around 625 a month for a total of $1,325 a month


With their 200K budget outside the flood zone house would be 600K, they would have to set aside at least 30K for repairs before move in as those houses are dated old so we are talking only a 170K downpayment. So a mortgage of $430K which is a $1,430 mortgage a month plus taxes of around at least $1,000 a month. So $2,430 a month. House would have to rise in value an extra $1,000 a month every month for next 30 years for it to be a better buy.

Plus my house you don't really need to budget for big repairs as much. I have all brand new mechanicals good for 30 years. Only way you have to replace them is in a flood and FEMA pays.

Also my heating bills fell a lot after Sandy Brand new system and I re-insulated the whole lower level. when I had the walls down.

Yes you have the risk and yes if a another Sandy hit in next five years it would be a killer. But it is not a stupid risk.

All great points. I just still have homeless family from Seaford because FEMA did not bail them out. There are still many families who had to abandon their homes.

[SandyJet]

Originally Posted by DisneyMcFamily

All great points. I just still have homeless family from Seaford because FEMA did not bail them out. There are still many families who had to abandon their homes.

But those homes will get sold to flippers who will get land dirt cheap and rebuild a new FEMA compliant home with low flood insurance. Flippers can resell homes at a much lower price as they can get plots for as little as 90k while in better towns you have to spend 400K for a small plot.

I have one on every block near me. Mostly elderly people who were overwhelmed and homes just sit vacant. Most have lawn service so would not know if from driving by. But these houses must be a mold fest inside.

[DisneyMcFamily]

Originally Posted by SandyJet

But those homes will get sold to flippers who will get land dirt cheap and rebuild a new FEMA compliant home with low flood insurance. Flippers can resell homes at a much lower price as they can get plots for as little as 90k while in better towns you have to spend 400K for a small plot.

I have one on every block near me. Mostly elderly people who were overwhelmed and homes just sit vacant. Most have lawn service so would not know if from driving by. But these houses must be a mold fest inside.

I'm being told by State Farm that they won't even write policies, despite FEMA compliant homes. Definite mold fests, that's for sure. I'm still amazed by the people who didn't raise there homes, yet remodeled and then stuck a for sale for triple its value. It's good to see it mostly rebuilt, though. It was a tragedy.

[SandyJet]

Originally Posted by DisneyMcFamily

I'm being told by State Farm that they won't even write policies, despite FEMA compliant homes. Definite mold fests, that's for sure. I'm still amazed by the people who didn't raise there homes, yet remodeled and then stuck a for sale for triple its value. It's good to see it mostly rebuilt, though. It was a tragedy.

I am not. My house only pays $512 a year full flood insurance. My property insurance is dirt cheap.

If I raised it would cost me like 150K out of pocket and I would have to rent a place for almost one year.

I can keep that 150K in stocks or bonds earning dividends or interest. And raising can raise your property taxes.

I am now required per FEMA/NY Rising to maintain flood insurance for life of property. But does not say how much. I could do a 50K policy with a 10K deductible if I just wanted bare bones coverage to fix electric box and heat and clean up in the event of another Sandy.

Also in raising I lose basement. Which is 25% of my square footage. Plus not everyone wants a raised house. And in Splits and Hi Ranches even not raised the damage is usually very limited. A high ranch all bedrooms and kitchen are ten feet off ground. Lower level is usually just a large den, half bath and garage and mechanicals if it gets flooded not that big a deal.

I am amazed at amount of one story ranches which got five feet or water not raised. In a flood no place to go. And you lose everything. Not like a split or high ranch you move everything upstairs and evacuate.