Flood Zone SFH Property Buy or No Buy ?

Question

What are your guys thoughts or pros/cons on buying a SFH in a flood zone? Also any luck with FEMA removing it out of Flood Plain after your E-LOMA appeal??

Jonathan Greene · Answer

You can contest and win, but it would literally have to be right at the edge. If you are like 100 feet in, forget it. If the whole property is in, forget it. The only time I would buy a house in a flood zone would be if I was paying cash and it was WAY under value and I planned on keeping it as a rental forever knowing the rent with offset the flood insurance in the area. It depends if you are in the 100-year plain, 500-year or other on how much insurance will be. But generally, NEVER buy in a flood zone is the best advice.

Jonathan Greene · Answer

Ha, I meant the river was too close. Here is the link, they might only do NJ, but could have a referral - https://www.wtgroupllc.com/resources/

Aaron K. · Answer

Just don't, the insurance is way more expensive and tenants see it as identical to a home not in a flood zone so they aren't willing to pay more, it can be difficult to sell, and if it is at a discount now it will likely be at a discount when you go to sell it, not to mention it could get flooded obviously.

Christine D. · Answer

500 year flood plain minimum. If you believe the earth is getting hotter, the artics are melting, and that climate is changing, you can expect that it will get flooded.

We looked at some places on the east coast in a beach community.  Per our contractor, "whatever the house moving company tells you the cost is, add $20,000-$50,000 onto it."  So, for the property we were looking at, they told $30,000.  Just imagine getting sticker shock with adding 20-50K onto.

Rob Singh · Answer

@Mike Hyder awesome advice!!

Mike Hyder · Answer

My two cents.  Whenever my wife and I have purchased a home we always think about our exit plan....that is selling.  This is why we look for a quiet street, good schools, nice neighborhoods, close to shops, increasing population etc.  It has served us well and we have always made money.  I would offer the same advice to you.  Personally, I would not purchase in or near a flood zone....period.  I would not buy near a busy street, power lines, nor next to building such as a next to a gas station or water treatment plant.  Yes, you can get a "deal" but in the end, it is too risky for me.  Do not fall to the pressure of buying at the risk of doing financial harm.  I am fighting this very thought myself....and it is a hard fight!

Clint Shelley · Answer

You can contest and win. Proximity is not the determining factor. Search some of my older posts on the subject. I get structures removed all the time. A lot of factors go into it. It's site and condition specific.

Clint

Rob Singh · Answer

@Jonathan Greene . Definitely at least 2 full blocks away and have other homes in front..

I tried googling Too Close, but could not find the company or firm your referencing. By chance do you have the exact link or name ?

Jonathan Greene · Answer

When it's really close there is a company I've used to try to get the insurance taken off. It has worked. If the property backs up to the river, it's not worth it. The source is too close.

Rob Singh · Answer

@Jonathan Greene thanks for the tips. It’s in a 100 year plain. I am definitely around 100 ft over with dual road in between and houses across the street. They  actually back up to the river..

Flood Zone SFH Property Buy or No Buy ?

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