Sandy damaged areas

What do you think will happen in the next year to the homes in Sandy damaged areas?

We met with a realtor last night (thanks Beth!) because we want to sell our M/D that we own with family to go our separate ways. We want out of the area but if we sell now will lose a boatload of money on our home. How much do you think waiting another year will help the market south of Merrick Rd recover?

Re: Sandy damaged areas

i would talk to a realtor to give you more info, but here is what i noticed....

the housing market is heading back to being a sellers market. for your sake, hopefully that trend continues and youll be able to get more for your house

i also think waiting longer may be better because sandy wont be as fresh in everyone's head...however on the flip side...you never know what can happen in terms of weather and storms in the upcoming years.

Message edited 11/22/2013 2:24:15 PM.

Re: Sandy damaged areas

One thing I have noticed lately is that I have a lot of first time buyers now who are open to looking south of Merrick Rd. in flood zones, because you get so much more for your money there right now. Of course, flood insurance is an extra cost, but for some, it's more than offset by lower prices. So the demand is definitely there.

I have a house listed in Seaford, south of Merrick, in a flood zone, and I've been getting a lot of showings on it. But it's a split level listed at $329,000. The same home north of Sunrise would be priced at over $400K.

As far as prices - prices are going up, but even in non-flood prone areas, they are gradually rising. So I wouldn't expect to be able to get a LOT more in any area by waiting a year or two. To give you an idea, in N. Bellmore school district, from November 1, 2012 to October 31, 2013, home prices are up 2%. For the same period, in Bellmore school district (which largely covers area south of Merrick Rd.), house prices are down 1.2%. So if your house was worth $400K now, even if it went up 2% in value, you would be looking at $408,000 (not something like $450,000). And again, that's in a non-flood zone area. I think it's still too soon after Sandy to know how the south of Merrick trend will go with pricing.

ETA - Obviously all real estate is local, so I would definitely take a look at the trends in your particular town/school district.

One thing I would advise you to do, if you plan on selling,and I assume Beth spoke with you about it, is get an elevation certificate. It is really key for sellers in flood zones. The cost of flood insurance is now being dictated less by what zone you are in and now by the elevation of the individual house. Even people who aren't selling, but who just live in the AE flood zone, should do this if the cost of flood insurance is getting too high. People have been able to significantly reduce their insurance costs by doing this (because many homes in flood zones are built up fairly high). It will make a lot of difference in marketing and selling the home. And even if it isn't helpful in reducing costs, it will be needed for the buyer to get an accurate insurance quote. If flood insurance cost is too high, it may make a potential buyer's debt-to-income ratio unacceptable to their lender, and can take a deal. So the legwork on the flood insurance should be done upfront (and a new buyer can no longer assume the previous owner's policy).

An elevation certificate only costs about $500 or so (and is done by a surveyor).

Message edited 11/22/2013 3:36:26 PM.

Re: Sandy damaged areas

I am south of Merrick Rd, we have 3 homes a block west of us that were completely flooded and are now being gutted/raised.

We plan to list our home in a few weeks, we already had a house 2 blocks east of us go into contract (it was on the market for 8 months) and 2 that were sold within the past year within a 1/2 mile of us (all in flood zones). I think the market is picking up, but its slow. Obviously we are prepared to deal with very low offers, as the new buyers will have to carry flood insurance.

My main concern is what will happen w the Biggert Waters Act (which is why flood rates will skyrocket for new buyers). Right now, DH and I lucked out with only a moderate increase in our flood ins premium, but if something isnt done to rectify the unintended consequences of BWA -12, we may lose potential buyers once they find out their flood ins premium will most likely be around $5k/year.

Re: Sandy damaged areas

We were looking at a home S. of Montauk in W. Islip a few months ago. I am not a real estate agent but you can get a lot more for your money because I think people are scared from Sandy. We did not buy the house and I loved it because the homeowners insurance was going to cost 5K a year. Not many insurance companies are writing policies and when they do the are Add that to the cost of flood insurance and for me that was just too much money each year to spend on just insurance.

Re: Sandy damaged areas

I'm interested to see how the market plays out as well.

We live below Montauk and had damage from Sandy.

I don't know anyone personally selling in my neighborhood right now, but a lot of people are deciding to do upgrades and stay.

This is our plan. We have flood insurance now and fortunately it wasn't so unaffordable.

Some of my neighbors are considering raising their homes.

If this really turns out being a once a century storm, people could get a bargain, especially if upgrades are involved.

My ILs on the other hand live in Seaford below Merrick Rd. and by some miracle were one of the only houses on their block with no damage. They eventually want to sell and downgrade to a condo but fear no one will buy their home. They've even put it out there to all of us that the option is there to buy them out.

I know DH is not super crazy about the location and has concerns about the cost of insurance as a new homeowner on top of already higher taxes in that town. Plus we'd have to sell our house first.

Re: Sandy damaged areas

Posted by MorningCuppaCoffee

I'm interested to see how the market plays out as well.

We live below Montauk and had damage from Sandy.

I don't know anyone personally selling in my neighborhood right now, but a lot of people are deciding to do upgrades and stay.

This is our plan. We have flood insurance now and fortunately it wasn't so unaffordable.

Some of my neighbors are considering raising their homes.

If this really turns out being a once a century storm, people could get a bargain, especially if upgrades are involved.

My ILs on the other hand live in Seaford below Merrick Rd. and by some miracle were one of the only houses on their block with no damage. They eventually want to sell and downgrade to a condo but fear no one will buy their home. They've even put it out there to all of us that the option is there to buy them out.

I know DH is not super crazy about the location and has concerns about the cost of insurance as a new homeowner on top of already higher taxes in that town. Plus we'd have to sell our house first.

Re: Sandy damaged areas

Thanks so much Christine!

I will speak to them when I see them next.

I suspect it is going to be minimum 2 years before they get super serious though.