What to Know About Buying & Selling a Home in Flood Zones on the Forgotten Coast of Florida
When you live on the Forgotten Coast of Florida or any area in Florida, you won't usually go a week without seeing news about the weather and the devastating effects on a property. Whether flooding is caused by a single event or rising sea levels, it is a risk factor for those who consider buying or selling property. As a seller or a buyer, you might be wondering how big of a concern this is for you.
Continue to read to find out everything you need to know about buying and selling a Forgotten Coast of Florida home in a flood zone.
What is a Flood Zone?
In simple terms, a flood zone is a geographic area defined by its flood risk level. The Federal Emergency Management Agency (FEMA) uses three risk zones via code. These include the following:
- High-Risk Zone. This type of designation is reserved for SFHA or Special Flood Hazard Areas. This type of zone codes for a designation of A or V, the latter an indicator for a property that is in a coastal area.
- Moderate-Risk Zone. Flooding is possible, although less likely to occur. The zone codes for this designation are B or X (shaded).
- Minimal-Risk Zone. These geographic areas have very little risk of flooding, however, it is possible. Zone codes for this designation are C or X (unshaded).
What to Know About Selling a Home in a Flood Zone
If you are a seller in a flood zone, you will want to make sure that you and your chosen real estate agent are aware of the latest FEMA flood zone status for the property being sold, as it can always change and assumptions should never be made.
Disclose All Information
It is important to discuss applicable disclosure requirements that the seller has. Disclosure requirements are mandated on a state-wide level and will vary from nonexistent to strict. Regardless of what your state mandates, it will always serve you well to encourage your client to disclose everything you know about the property's condition, including flood history. Apart from being the right thing to do, it will also keep you out of trouble in the future.
Flood Mitigation
Making the efforts to mitigate their property's flood risk over the years is a peace of mind. Even if the seller hasn't done this, it is a great method of preparation for selling. Savvy buyers and their agents will ask what flood mitigations are in place and will factor your response into the final offer. Flood mitigation efforts are simple and inexpensive. Others are more involved and expensive. Below are a few examples of what can be done in the name of flood mitigation:
- In coastal areas, homes can be raised out of the flood plain.
- HVAC units or propane fuel tanks can be anchored or elevated.
- Backflow valves and/or sump pumps can be installed.
- The garage door and cracks in the foundation should be sealed.
- Flood walls and flood vents should be added.
The seller-client should look at flood mitigation efforts in the same way most sellers view other home-improvement projects leading up to the sale. Money spent upfront on measures taken for flood mitigation can be returned in the form of a higher sale price.
What To Know About Buying a Home in a Flood Zone
When a buyer of property is interested in a home in a flood zone, a professional expert will take on greater importance in the transaction. A great agent will know things you, as a buyer, will not, and when to call in specialists as needed.
Flood Forensics
A property that has a history of flooding will leave behind clues. Other indications of flooding that aren't visible can be detected during a home inspection. It is important to ask if the inspector has any experience with flooding and uses a moisture meter during an inspection. If the need for additional investigations, ask others in the neighborhood about the area's flood history. Local news in online archives can be helpful as well. However, your greatest investigative resource is the local floodplain manager, as they know their way around FEMA flood maps and additional resources–from historical reports and information specific to a client's location, and services are free.
Cut Down the Risk
It is important to remember to ask the seller which mitigation measures are in place. Mitigation efforts might not be fully visible, yet are significant nonetheless. A property owner who has taken on the effort and expense of flood mitigation has likely maintained the property responsibly in other aspects.
Consider Additional Costs
When buying a home in a flood zone, additional costs are not always experienced in other areas. Ensure to factor in the cost of flood insurance when putting together an offer. The buyer should be reminded if they choose to finance the purchase with a government-backed loan, flood insurance will be required if the property is located in an SFHA. If immediate flood mitigation efforts are in place, consider those when putting together an offer to purchase.
Conclusion
There are always going to be certain complications to overseeing real estate transactions that involve property in flood zones. Working with a flood zone real estate agent who specializes in the sale of these properties can ensure that whether you are a seller or buyer, you can avoid further issues with the sale of the property. Flooding is a year-round risk, though there are plenty of stipulations put in place to ensure that you are ahead of the disaster if it should come. Let the professionals at Coastal Realty Group guide you in finding your dream home in the many beautiful, charming communities on the Forgotten Coast of Florida today!
