Before sitting down with my buyers and writing an offer on their Spring Texas dream home, I will contact our in-house insurance agent and find out if the home is located in the 100 year flood zone. A home located in the 100 year flood zone means that in any given year there’s a 1% chance that a major flood will occur. I want my buyers to know going into the negotiations if the home is located in the 100 year flood zone. Because it does impact resale value, their home ownership costs, and in some instances their ability to sleep soundly at night.
Some buyers I have represented did not want to proceed any further with an offer after discovering the home was located in the 100 year flood zone. If you are the type of individual that every time we have a heavy rain you will be worried that your house will flood, then DO NOT purchase a home in the 100 year flood zone. The home is not worth the mental anguish it will cause you. No matter if it is your dream home.
Before you purchase that Spring Texas home located in the 100 year flood zone, consider the following:
* Homes located in the 100 year flood zone DO NOT appreciate in value at the same rate as other homes. Why? Because of less demand for the homes. I have had potential buyers ask me at an Open House if the house was in the 100 year flood zone. After I said Yes, they turned around and immediately walked out the door. They had NO interest in viewing the home any further. The pool of buyers for homes located in the 100 year flood zone is smaller than for other homes. So when you go to resale the home, it will take you longer to get it sold and the appreciation in price that you will receive will be less.
* It will COST more to insure the home. If the home is not located in the 100 year flood zone, your lender WILL NOT require you to purchase flood insurance. The decision to purchase or not purchase flood insurance will be solely yours.
But if the home is located in the 100 year flood zone, your lender WILL require you to purchase flood insurance. The cost of the flood insurance will be between $450 and $2,500 annually. The factors that determine the cost of the flood insurance are the home’s elevation which will be determined by the elevation certificate and the deductible on the insurance policy.
An insurance agent will not be able to provide you with a flood insurance quote on a home located within the 100 year flood zone without an elevation certificate. One last thing to remember is that flood insurance is in ADDITION to your Spring Texas home’s homeowners insurance. For more information about flood insurance, risk of flood and tips for homeowners, visit FloodSmart.gov
If you are looking to purchase a home or are interested in selling your Spring Texas home, call Jill Wente, Realtor with Better Homes and Gardens Gary Greene at 281.804.8626.
Jill was phenomenal during every step of selling my father's home. This process was extremely difficult for me, as... read moreJill was phenomenal during every step of selling my father's home. This process was extremely difficult for me, as my father passed away last year. Jill listened to EVERY story I had, and there were a lot of them! She allowed me to share the memories of the house, which helped me prepare to let it go.
She is very knowledgeable in what to and what not to do in regards to getting the home ready to sell, what to tackle during the negotiation process and she made the closing extremely convenient. She was thoughtful enough to place the "sold" sign on the property a week in advance, to allow me time to process it all.
Paying constant attention to what is happening around your listing is one of JIll's many strengths. Her goal is to get you the most money for your property, and she has different strategies to that end result.
I not only gained a new realtor, but in JIll, I also gained a friend! I will be forever grateful for her through this tough process and I know my Dad would have loved her! "Thanks," will never be enough! read less