Have you ever had to deal with a flooded house? It doesn't sound like you have cause if you had you'd be running not walking in the other direction. My little part of the world got hit by a major flood the beginning of September, Upstate NY. Places that never flooded before flooded. Places that have flooded in the past were hit even harder than in the past.
#2 son and DIL bought a house that had been flooded in the past. They are now homeless with two small kids and a baby.
They have no idea if or when they will ever be able to move back into their house. The inside needs to be gutted. They just got the okay from the insurance company to do so. This weekend they start the gutting of the house. Then it all has to be scrubbed down and then bleached. After that they have to wait for the studs to dry out, which can take weeks even months.
They lost all their mechanicals..........furnace, water heater, AC. They've lost time from work. They lost a car. Their kids lost their sense of security. They spent hours at a laundry mat washing clothing and bedding trying to get the smell out of stuff. The stench from a flood is ecthed in their minds. That and the skeeters it brings as well as the brown dust that remains after the flood waters have gone. You walk around in thick mud for weeks afterwards and then things start to dry and you have this dust on everything you own. We're into the first week of October and things are no where near normal.
They have flood insurance BUT it only covers so much on belongings and so much on the house. Repairs and replacements will be much more than what they will get from insurance company. Because of the size of the flooded area alternate housing is very limited so they are staying with family.
It's been emotional and stressful. They are young and will recover eventually with some help.
95% of our community was affected by this flood. I think if you asked any of them if they'd knowingly buy in a flood zone they'd tell you no.

Well, a healthy percentage of the most expensive property in the country is in a "flood zone", so obviously lots of people are buying there.

However, "in a flood zone" and "recently flooded" are very different things. Generally, anything that touches flood water is ruined and needs to go. Has that been done?

Before you buy any sort of fixer-upper, you should price out how much it is going to cost to fix it. Have you done that? That might double or triple the real cost of this home.

Ask anyone in Minot ND or Fargo/Grand Forks ND about this. Minot is going thru this problem with at least 4000 homes because of the flooding. Besides the mold, etc, they are not telling people if they can even rebuild in the flood zone. No I would NOT buy a home that has been flooded. Can you get flood insurance?

The only way that I would buy a home that has flooded in the past was if it were to be torn down and rebuilt to current FEMA flood and high wind standards. You just quadrupled the price of the "bargain" but at least it won't cost you that in flood remediation in the future when it floods again. Plus the cost of flood insurance, if you can even GET flood insurance for a previously flooded home at any price.

"flooded in the past" . . . "We live in a hurricane zone" . . . "flooding is imminent"

Are you really sure that the waterfront location is worth dealing with repeated floods, being displaced for whatever time it takes to continually "remodel" the home after a flood, being subject to mold on an ongoing basis, losing your possessions either due to the flood or looting, all the while paying a "steep premium"?

If your answer is "yes," then I say go for it.

DON'T buy a house that has a history of flooding!
Ever!
No. Don't buy it.

My neighbor has a 30 yr old house downstream of wet weather creak that floods at least a couple times a year. Runs thru my front yard so I know how many times that has happened. There is a small catchment tank near her house, and it is a couple feet higher than her slab. Needless to say, the house has been flooded many times over the years. Now they want to sell. I am the obvious buyer, but even after numerous discussions that I intend to tear down the house to avoid the inevitable, will pay for the land and utilities, but feel the fact I have to bear the expense of a tear down and faulty electrical installation due to no conduit from the pole, the house should be a wash, forgive the pun.

She says things like, not fixing it up to sell, I know it is twisting and the doors don't close...but the land should be worth something..to which I agreed.

So ready to write a check to avoid expense of a loan and simplify closing, she drops the bomb that her son is pricing it at 200K, due to a 3 bedroom house on five acres close to town. As she mentions comparables, my question, comparable to what..a 3 bedroom house on a flood plain that's already flooded? I got no response.

I haven't tested for black mold, but likely has it. The fact is the house is in the wrong place and has to go. Owner herself said the house needed to be lifted! Nothing architecturally redemptive about it in the first place, so that is unlikely to happen, no matter who buys it.

How do they value a house that has been under water, if only by 6 inches as she claims...and is in the line of future floods as there is nowhere else for it to go. No bank will approve a loan for that amount, no matter how much expensive insurance is on it. Or do they?

How can that house not have a negative value?

Thanks for anybody whose dealt with this, and/or realtors or inspectors helping me with this question.

You can do comps of sold properties in the past 6 months to show her, or you can tell her no thanks.

How do I go about getting comps? Have found nothing remotely like it on Zillow.

Jacey - The buyer, if any, will be unable to get flood insurance, AND and competent inspector will find the signs of flooding.

Is that a fact nationwide? We are here in Texas...always figured you could get insurance on anything if you are willing to pay for it.

http://www.propertycasualty360.com/2016/03/24/changes-are-coming-to-nfip-on-april-1-are-you-read

Get a current quote. It may be very expensive. Ask agent if it is subsidized. The max flood coverage is 250k. There was a program in that grandfathered homes built before 1980 in flood zones. Paying subsidized rates. Now every year those subsidized rates are going up 15% each year.. The only way you can avoid the rate hikes would be to elevate the home a certain amount over base flood elevation.

Mold. No.

Lazy_gardens, are you saying that once a home is flooded the homeowner is unable to subsequently obtain federal flood insurance? Where did you see that?

There are a lot of flooded homes every year.

Flood loss payouts by year

gpeach, this house was built mid 80's...so, way high to insure your saying?

I had a buyer that was unable to obtain regular home owners insurance on a home that had a water claim on it, unless they paid an unrealistic premium. And I am talking about an extremly unrealistic premium. Even to these clients that were purchasing a very expensive home.

ncrealestateguy, do you know if prices are ever dropped the price of the house if it needs to be removed? I can't see anyone wanting to maintain this house, raise it or otherwise....it really needs to go.

jaceymae - From what I have learned would think it would be very expensive if you could even get insurance like ncrealestateguy said.

Did more research... Homes built in 70's-80's before a flood zone map was done were paying subsidized rates. Grandfathered homes were built according to current flood zone maps that changed putting that home in a riskier zone. Those home were not paying market rates but not considered subsidized. Now they are eliminating subsidized/grandfathered rates. Increasing premiums around 15% a year until they are to market rate.