Selling a Water Damaged Home

by Zarine, REALTOR® 01/12/2020

Photo by Monkey Business Images via Shutterstock

After a significant storm or catastrophic event, you may determine that moving to a different climate is right for your household. The question becomes, do you repair all the damage to your home before you sell it, or do you offer it “as is” so that the buyer takes on that cost. Sometimes, if you take care of the damage problem quickly, you’re only left with minor repairs. Often, though, it can seem like the entire house needs fixing.

To figure out which is right for your situation, review these pros and cons of each choice.

Making Repairs vs. Selling "As-Is"

  • Repairing water damaged areas will net you more if you have the resources and the time to make the repairs before you sell. You can ask a higher price when you sell. But often, this process involves waiting for insurance money, hiring contractors, completing repairs and having the adjuster inspect the work. Meanwhile, you must find a place to live while they fix the water-damaged areas. That means spending a lot for out-of-pocket expenses.
  • Additionally, you’ll need to put extra effort into making sure that buyers feel comfortable and confident in the house’s repairs, which means hiring professional inspectors, documenting mold mitigation and repairing even minor damages. All this might not be worth the investment.
  • When you don’t have the time or money to fix the repairs, you can sell your house “as-is," water damaged and all. You won’t get as much money for the property, but you can get out of it and into a new home sooner. In many instances, your knowledgeable agent can market to investors that willingly give you a cash sale offer. The best part about it is you won’t have to do anything. All the money you would have spent on repairs, contractors and professional inspectors can stay in your pocket or go toward your new home.

Selling to an Investor

Selling a water-damaged house to an investor is one of the best options. An investor will pay cash for your property without requiring you to fix anything. Here are the best practices to make it a great sale:

  • Do not hide the water damage! Whatever you do, don’t try to hide that your home experienced flooding.
  • Legally, whether selling "as is" to an investor or an interested buyer, disclosing water damage is a requirement; this is because water damage may introduce harmful chemicals, materials, or pathogens into the home, which can lead to mold growth in the future. Trying to cover up water damage can land you in court. Do yourself a favor. Let any buyer know about past water damage in your home.

How to Sell a Flood-Damaged House

If you have the money from an insurance payout, make the repairs. You can fetch a higher price on the market. But when this investment isn’t worth the cost, it’s often a better choice to sell your water-damaged home to an investor instead. If this sounds like a good possibility for you, ask your real estate professional to market your home to investors so you can resettle your household in a better home.

About the Author
Author

Zarine, REALTOR®

With over two decades of real estate industry experience, Zarine focuses on the San Francisco Bay Area marketplace. From single family homes, condos, townhouses to multi-family residences. She works extensively with investors to upgrade, remodel sell residential and commercial properties. She has consistently been in the top 5 agents out of over 300 agents in the Company.

Zarine has been a Bay Area resident since 1977. She has been active in real estate since 1988. In addition to helping buyers and sellers find their dream home, Zarine and her husband Neville started investing in Real Estate in the Bay Area since 1978. They own and maintain several rental properties and also regularly purchase, fix, and sell homes. They have a team of contractors, landscapers, and tradespeople that they can recommend. They built our own home from scratch and worked closely with the architect in the vision and design. Together, they are involved in every aspect of real estate and live it daily.

Having traveled extensively around the world, Zarine is able to accommodate each of her clients’ unique needs, and prides herself on being a strong listener and communicator. Zarine’ s communication skills are an integral part of her success in real estate. She meets clients from all walks of life and dedicates herself to understanding each of their needs and goals. Zarine and Neville love what they do and have won several awards over the years. They are dedicated and have been with J.F.Finnegan brokers since 1995. In turn their clients are loyal as 95% of their business is from referrals. Real estate is more than just a profession to them; it is their hobby and passion.

PERSONAL INTERESTS:

Originally from Bombay, Zarine and Neville go back to India to visit family. They have travelled extensively around the world and love their annual escape to Maui. Zarine enjoys cooking, entertaining, gardening, reading, movies, and life! They have two daughters who live in San Francisco and their joy in their life are their three grandchildren.

AWARDS:

  • 2016 Emerald Elite #2 in the whole Company
  • 2015 Emerald Elite # 3 in the whole Company
  • 2014 Platinum Award #5 in the Company
  • 2013 Emerald Elite #1 Team in the Company
  • 2012 Platinum Award #1 Team in the Company
  • 2011 Platinum Award #1 Team in the Company
  • 2010 Masters Award #1 Team in the Company
  • Consistently Among the top 3 individual agents of over 300 agents at BHG
  • Chairman's Circle (Consistent Winners 2001, 2002, 2003,2004,2005,2006,2007,2008,2009)
  • Winners of SAMCAR “SAMMY AWARDS”
  • San Mateo Association of Realtors (SAMCAR),California Association of Realtors (CAR), National Association of Realtors (NAR) San Jose Apartment Owners Association
  • Fine Homes Specialists, E Certified, Bankers Preferred Mortgage, CARTUS Relocation Certified