An inside look at the residential real estate market in Southeast Texas including: the hottest neighborhoods, proven home selling strategies, home buying and negotiating tactics, median prices by neighborhood, average days homes are on the market, and professional advice on how to get the best deal when buying or selling a home.

Hurricane Harvey Aerial View of Homes in Southeast Texas
"As Is" Value of Flooded Homes in Southeast Texas

"As Is" Value of Flooded Homes in Southeast Texas

As Is Value

 

For Example:  

Pre- flood Value –                $150,000
15% Stigma Discount –        $22,500*
After repair value –             $127,500
 
Repair Costs –                         $40,000
20% Investor Profit –            $25,500
 
“As Is” Value -                         $62,000
 
Now, the next factor to consider is how much inventory there will be of flood damaged homes.  If there are a lot of homes for investors to choose from, this will have a downward effect on the prices.  
 
These numbers are potential starting points for negotiation.  We are using our best guess since we don’t have any recent history to draw from.  Ultimately, the market will determine the sales prices.  
 
*This information was provided by Andy Hemmings, Sales Manager with Coldwell Banker Southern Homes.  I've put it in a chart and shared it with the readers of my blog.  
 
If you would like a post-flood market analysis to help determine the value of your home, please contact me for a no cost analysis.  
 
Sincerely,
 
Diane
Search MLS for Homes
Email Diane

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