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.