The Ellis Team has been selling hurricane damaged homes as-is in some cases. Many homeowners don’t realize they have this option. Sellers have several options if their home was damaged.
Selling Hurricane Damaged Homes As-Is
Some sellers just don’t have it in them financially or emotionally to go through the entire repair and insurance process. Fort these types of sellers, there are a few options. The homeowner can sell and keep the insurance proceeds or transfer the insurance proceeds to a new buyer. If the seller has a mortgage, and there is enough in the sale to satisfy the mortgage, this becomes an option. For owners who own their home outright, it isn’t an issue.
A seller may sell for more if they can transfer the insurance claim to the buyer, but not in all cases. We recently sold a hurricane damaged home whereby the seller retained all hurricane claims, both flood and homeowners, and the new buyer accepted the home in its as-is condition.
Obviously a new buyer is going to look at the home and determine how much they think it is going to cost to fix it up. Is the home subject to the 50% Rule? They will probably want some sweat equity for doing all the work and taking on the risk. Additionally, this new buyer may not be able to get insurance on the home. The new buyer could get a builder’s risk policy if the home previously had insurance, even if the seller is keeping the claim money.
In other cases, no insurance will be available to the new buyer until the home is repaired and inspected. We do have insurance companies writing policies again for repaired homes.
How do you know how much you should ask for your home as a seller? It helps to know the pre-hurricane value of your home. Then, we calculate the repair costs to bring the home back. If the home is subject to the 50% rule, the costs would need to be calculated as brought back to it’s original pre-hurricane condition. Once we know or estimate the cost to repair, a calculation can be made as to what a reasonable person might pay for a damaged home assuming all the risks and work.
To get an estimated value of your home pre-hurricane, visit www.SWFLhomevalues.com Do so right away because new sales might start influencing the post-hurricane values. Or better yet, call us at 239-310-6500 and let us help you evaluate your options. We may even know some contractors who can help with some of the work.
What if your home is missing, or heavily damaged beyond the 50% and you don’t wish to rebuild? We may be able to sell for the land value and net you more money than rebuilding. Some homeowners didn’t have flood insurance because it was so expensive. In other cases, the flood insurance payment won’t make a dent in what it would cost to rebuild. The point is, you have options, and we can help you determine which is best for you financially and emotionally.
Brett and Sande ask a lot of questions. Many times, it’s not about what we would do. It’s about what is best for you. Is there money to do the repairs? Is your heart in it? How long are you willing to fight the insurance company? We’ve had a few sellers choose an option we would not have chosen, but it is their house and their decision. We absolutely respect and support those decisions. Therefore, we present all options. We feel the best decision is an informed decision based upon your needs.
We are your partner in the home selling process. We may not know all the obstacles that will come our way during the transaction, but rest assured we will be there with you to help navigate those obstacles should they occur.
Always call the Ellis Team at Keller Williams Realty. We are your partner in success!