I ran this post earlier this week. I'm running it again because a lot of people are asking the question "What is my home worth if I sell it "as is" with flood damage but gutted.
Here's the chart that I posted earlier this week.
I've spent the past week driving around showing flooded homes to investors and talking to people who are thinking about selling their home "as is". My advice is if you have any way (any way at all) to fix your home then you will come out better in the long run selling once it is fixed up.
The sheer number of flooded homes is going to far surpass the number of buyers who can buy homes in "as is" condition.
Here's is an example of a homes "as is" value
Pre Flood Value – $200,0000
*15% Stigma Discount – $30,000
After repair value – $170,000
*Repair Costs – $60,000
20% Investor Profit – $34,000
“As Is” Value - $76,000
Now, the next factor to consider is how much inventory there will be of flood damaged homes. If there are a lot for investors to choose from, this will have a downward effect on the prices. And vice versa.
Hope this helps. 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.
If you are considering sell your home and would like a professional market analysis, contact me. There is no cost for the analysis. This is a very difficult time for all of us. Gather as much information as you can before you make any decision regarding your home.