After more than a week of steady rain, Chico area neighborhoods are pretty water-logged. Sometimes the culprit behind localized street flooding is a debris clogged storm-drain. Other times it’s indicative of a bigger drainage issue. Here’s what you need to know about disclosing flooding issues and buying a home on a street that has flooded.
As a seller you should disclose to a buyer any material fact, such as street flooding that could have an affect on your homes future value and safety. This is normally done by way of a form called a Transfer Disclosure Statement. The good news is that this disclosure can actually work to your benefit. Let’s say that a buyer ‘heard’ that your street had flooded. If you can truthfully explain that the flooding was an isolated occurrence, caused by a one-time event, it might dispel the buyers fears. If on the other hand the flooding turns out to be a recurring issue, you must disclose what you know. It’s always better to disclose up-front and let the buyer decide whether to proceed with the purchase than to hide a problem and be sued for it afterwards!
Your homes value may be affected by the incident depending on the seriousness of the problem. FEMA – the Federal Emergency Management Agency keeps flood maps of the entire country. These maps show which areas of your community are designated ‘flood zones’. There are different designations of flood zones, from those that flood regularly, to those that only flood based on the hypothetical ‘500 year event’ and areas that may be prone to flooding if a nearby dam breaks. The maps are quite detailed and will help you determine if your home is in danger of flooding. Your lender is savvy to these maps and will probably insist that you carry flood insurance if your home is within one of the zones.
Homes in flood zones are typically more difficult to sell and thus the value can be negatively affected by this designation. Buyers should be sure to have their Realtor require a Natural Hazard Disclosure that provides this information before they purchase. Once again, the extent of the problem will determine whether the homes value is negatively impacted. Some homes are actually more valuable and because they ARE in a flood zone, for example homes with incredible stream, river or ocean views, but it takes a brave (some would call it otherwise) and well-informed buyer to purchase this type of property!
As a seller you should disclose to a buyer any material fact, such as street flooding that could have an affect on your homes future value and safety. This is normally done by way of a form called a Transfer Disclosure Statement. The good news is that this disclosure can actually work to your benefit. Let’s say that a buyer ‘heard’ that your street had flooded. If you can truthfully explain that the flooding was an isolated occurrence, caused by a one-time event, it might dispel the buyers fears. If on the other hand the flooding turns out to be a recurring issue, you must disclose what you know. It’s always better to disclose up-front and let the buyer decide whether to proceed with the purchase than to hide a problem and be sued for it afterwards!
Your homes value may be affected by the incident depending on the seriousness of the problem. FEMA – the Federal Emergency Management Agency keeps flood maps of the entire country. These maps show which areas of your community are designated ‘flood zones’. There are different designations of flood zones, from those that flood regularly, to those that only flood based on the hypothetical ‘500 year event’ and areas that may be prone to flooding if a nearby dam breaks. The maps are quite detailed and will help you determine if your home is in danger of flooding. Your lender is savvy to these maps and will probably insist that you carry flood insurance if your home is within one of the zones.
Homes in flood zones are typically more difficult to sell and thus the value can be negatively affected by this designation. Buyers should be sure to have their Realtor require a Natural Hazard Disclosure that provides this information before they purchase. Once again, the extent of the problem will determine whether the homes value is negatively impacted. Some homes are actually more valuable and because they ARE in a flood zone, for example homes with incredible stream, river or ocean views, but it takes a brave (some would call it otherwise) and well-informed buyer to purchase this type of property!
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