In Mantoloking, Bay Head, and all along the coast of New Jersey, we are arriving at a “new normal,” after Sandy. While a lot has improved, many properties and homeowners are still profoundly impacted. The real estate market is changed, even for those homeowners who have renovated, elevated, or rebuilt. Sellers should be ready for the new concerns of buyers.
Prior to Sandy, buyers were concerned about views, kitchens, pools, and other property luxuries. Since Sandy, buyers are more interested in elevation certificates, mold remediation, flood insurance, and other new concerns.
These days, when we show a house, a buyer is likely to ask:
How deep was the water in the house during Sandy?
What flood zone is this property in?
Do they have an elevation certificate?
Do they have documentation and invoices for the remediation that was done?
What is their flood insurance premium?
Is there a seller’s disclosure?
As a seller, it can be hard to accurately answer “how deep was the water the house” – in most cases, homes were vacant, and the water was gone before anyone returned. Instead, it may be better to explain what remediation work was done, regardless of the actual water depth. In fact, most buyers will ask for records regarding what remediation work was done after Sandy, so it is important to maintain a file of this information.
“What flood zone is this property in?” is easier to answer. A visit to FEMA’s www.region2coastal.com website will allow you to use the Preliminary FIRM Viewer (http://www.region2coastal.com/view-flood-maps-data/view-preliminary-flood-map-data/) to look up your flood zone via address. Keep in mind that these are the preliminary maps – they have not yet been adopted.
If you do not have an elevation certificate for your home, you should consider contacting a surveyor to obtain one. The flood zone that elevation certificate specifies will be based on the current maps (already adopted), but is likely to make reference to what the zone will be if and when the preliminary maps are adopted.
A well informed buyer will also likely ask to know what your current flood insurance premium is, and may even want to see a copy of your policy or declaration page. This may not be requested during an initial showing, but it may be asked for when an offer is made, or during attorney review (after a contract is signed).
Last but not least, a buyer may also ask for a copy of the “seller’s disclosure.” This is a document that your realtor will probably suggest that you complete, and it essentially allows you to share your knowledge of the property condition with a potential buyer.
All in all, post-Sandy buyers are generally quite well informed. It is to your benefit to be well prepared to respond to their questions, and if you don’t know the answer, admit it, but say that you will find out. Of course, when in doubt, consult the appropriate expert for the field in question, whether it be an attorney, engineer, or realtor.
The post Selling After Sandy: The “New” Real Estate Market appeared first on Suzie & Ed, Diane Turton, Realtors.