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Obviously it's a little early to see what influence Harvey or Irma will have on real estate, but I was wondering what's happened in the past after other major storms (for example, after Katrina).
For example, was there no market for homes because the region took a severe economic hit? Or were realtors incredibly busy because hundreds of people suddenly needed new homes? Were real estate markets across the country affected, or just the areas directly hit by the storm? Do buyers have a hard time with things like getting insurance or getting their inspections done?
Funny you should ask lol - we currently have a contract on a home in St. Augustine, set to close 9/29. That is, if we have a home left to close on at that point.
At any rate, we were told that insurance companies in that area will not write a policy on any homes while there is a named storm of any type. I hope if our home is still standing and we actually close 9/29 that there will be no named storms at that time - otherwise I think we will have to try to push the closing as I cannot imagine the anxiety level of owning an uninsured home.
Funny you should ask lol - we currently have a contract on a home in St. Augustine, set to close 9/29. That is, if we have a home left to close on at that point.
At any rate, we were told that insurance companies in that area will not write a policy on any homes while there is a named storm of any type. I hope if our home is still standing and we actually close 9/29 that there will be no named storms at that time - otherwise I think we will have to try to push the closing as I cannot imagine the anxiety level of owning an uninsured home.
Oh man, you have my sympathy! And you seller gets even more sympathy, can't even imagine what it feels like to be in that position. On the other hand if the house is still standing, at least you know that whatever terrible thing that was destined to happen to it has already happened. (I'm paraphrasing a famous line from a novel that was big in the 198os. Does anyone remember the quote? Or even the name of the book? I'm drawing a blank. It was also a movie, if that helps. It was said after a plane hit a house.)
We have stopped all lending transactions in Florida and will likely expand to states in Irma's path, until such time as the storm dissipates or leaves and properties can be re-assessed by appraisers to confirm viability for a mortgage.
Funny you should ask lol - we currently have a contract on a home in St. Augustine, set to close 9/29. That is, if we have a home left to close on at that point.
At any rate, we were told that insurance companies in that area will not write a policy on any homes while there is a named storm of any type. I hope if our home is still standing and we actually close 9/29 that there will be no named storms at that time - otherwise I think we will have to try to push the closing as I cannot imagine the anxiety level of owning an uninsured home.
If you don't have insurance, your mortgage won't go through. So unless you are paying cash, you probably wouldn't be able to close anyway.
I think it's pretty clear that 99% of buying and selling in the Houston area/path of Harvey have ceased over the last 12 days.
The same probably holds true for 70% of FL in the last 4 days.
If you're under contract in any affected area, it won't close with financing until someone has given it the thumbs up after any storms/floods have passed.
I don't work with Texas loans, but I know there is a whole list of counties we aren't closing in right now.
Haven't heard anything about Florida yet. Right before I left work I had to cancel a closing in Florida. The borrower's asked for it to be pushed back (I think it was orignally for 4 pm and they wanted it to be moved to 9 pm- it is a refi, so not a big deal.) Our team called two dozen signing agents and no one would accept it. So I had to cancel it. I'm not sure if it was the lender or the borrower wanting to get it done because now it will probably be a few weeks before it will close....
We actually do a lot of business in Florida (all those snow birds), so it will be interesting to see if we end up being super slow in the next few weeks.
I think in general there are a number of people that decide to leave so the immediate impact is to decrease values. Over time, that trend starts to reverse at least it has in New Orleans.
My brother bought a house in a prime downtown New Orleans location that was flooded out after Katrina and put everything new in terms of plumbing, electrical, etc. in a house that had that architectural French look and now it's worth about 4 times what he paid for it.
Looking at Irma's path and strength, I suspect that a large number of people will be devastated and a significant number will likely move out of Florida. It will be an opportunity to buy great real estate for investors or people that want to live there.
We have stopped all lending transactions in Florida and will likely expand to states in Irma's path, until such time as the storm dissipates or leaves and properties can be re-assessed by appraisers to confirm viability for a mortgage.
I have a friend who has been building a house in a new subdivision in Lakeland. The contractor required that they take out a construction loan. They were set for final walkthrough next Friday and closing the following Monday to convert the loan to a mortgage. If the house is damaged, what happens then? I think the only insurance on the property is the Builder's Risk.
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