Selling a house in a flood prone zone is a challenge, which as the agent to the seller, you must understand, and prepare yourself that way so that you can aid in the selling. The seller obviously would want to sell the property, and that’s why you are there to help out. But how you would convince American Property Buyers to go for the property is something you have to practice and learn.
A flood zone is actually designated by FEMI as a high risk area which may have floods due to low elevation level. The chance of the property getting flooded in the area would be as high as 25% in a span of 30 years while the property is estimated to be under mortgage. This means the home buyers Houston would be compelled to get a flood insurance for the property. And the cost of buying a flood insurance in a flood prone zone is going to be quite high, and higher than normal property insurance. The cost of property being increased due to the compelling flood insurance premium, and the bank asking for comprehensive flood insurance which gets difficult to find, it’s quite a challenge to convince house buyers Houston.
On top of that the slashing of the Federal flood insurance program in 2012 resulted in insurance rate hike by 25%. This has been pushing high the flood insurance premium price year on year. Moreover, the Congress has stalled the legislation to reinstate subsidies for flood insurance. In this situation even sellers cannot tell the home buyers Houston Texas what the premium is likely to be after a few years.
A detailed total disclosure about the property, the flood zone, and the estimated expenses on flood insurance is the best way to be transparent and believable before the buyers. Houston home buyers don’t like surprises. If you tell them the anticipated costing, and include the costing of the flood insurance of the current year in the property listing, then this would be the right approach.
The deal can be made to look better if the seller agrees to give a discount on the flood insurance for the first year by paying a percentage of the premium. Initiative to add flood elevation to the house to give it a safe accent is another way to convince buyers. For this the seller will have to do some good investment, but it’s worth getting the returns too.