To buy a home in a flood plane or no?

Question

There is a great deal for a house in a flood plane. This house seems to be the only one that has water issues. I had another investor tell me not to be scared of a property in a flood plane, even though it will be a 100k house, and the flood insurance will be an extra 150 per month for the buyer. Has anyone ever bought a house in a flood plane and what are your thoughts on it? Our contractor thought he could remedy the situation with a drainage solutions. Thanks for your help!

Allie

Mike Cumbie · Answer

Hi @Allie Bloyd,

Sometimes you can get it removed from a flood plane. Depending on how low it sits you can regrade the yard or raise the house up a quarter inch (all depends on that specific unit). So I would recommend consulting an engineer to take a look and having something in your contract in regards to it. The extra expense in flood insurance is a monthly expense so consider that vs buying a different house. What does an extra 150 a month buy you in 30 years (Could mean they could buy a 125,000 home for the same monthly payment).

Flood zones require some extra research to see exactly what you have and removing them from it is a time consuming expensive task.

Jay Barndt · Answer

i would see if you can get some history on how often and how bad it floods first "if you haven't" to make sure you're not getting a monster every year or more than you can handle in future repairs if your contractor is sure he can take care of this issue with drainage I would  not be too afraid to look into it deeper.

Mike Cumbie · Answer

Check out the address on the FEMA site, it should have the flood code and how high it is to the next one, that should help you know how difficult it is to get removed... if it can be... Could be a 100 year flood plane that is .1 feet too low (Put some dirt down and ask for a resurvey).

At least you know what you are dealing with that way.

Good luck!

Allie Bloyd · Answer

There appears to have never been water in the house. There is no basement so no damage there, just a crawl space. The yard is the main issue. It is always damp or wet, there are two areas that have slightly large holes (maybe 3 x 3 ft) in it that are filled with water. To our knowledge no one has ever tried to fix the water issue in the yard. Thank you for your input!

Ashley Schroeder · Answer

Is the contractor someone trustworthy?  I wouldn't be afraid of the flood plain issues; but I would be concerned over past damage, how it was remedied, and if water continues to be an issue.  If past issues weren't remedied appropriately then you could have a mold issue, rotting of wood and possibly joists... things that could add up quickly.  But if everything seems solid and in a good condition and the numbers work out, then there is no reason to back away just because it's in a flood plain.  My one caution though is you should never be draining water OUT of a house.  Flood plain or not water should not be coming IN.  You can have a house in a flood plain and not have water enter into the building if it was done correctly.  And the cost to fix it the right way may not be worth the hassle... but it may.  I would just make sure you do your homework first and run the numbers.

Allie Bloyd · Answer

Thank you so much, guys! The owners say "they have no idea what the situation is" and I've tried to reach out to previous owners with no luck. I will look more into what it would take to get it removed from a flood plane and see if it's worth it. Thank you!

To buy a home in a flood plane or no?

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