DOM and Price for Homes Flooded Multiple Times
Everyone knows the market right now is, um, indundated with homes damaged by Harvey. Lots of neighborhoods also took on water during Tax Day, Memorial Day, Ike, Allison etc etc etc....obviously Houston is no stranger to flooding.
I know its very case dependent, but does anyone have any feedback/experiences/opinions with flipping or reselling homes that have flooded more than once? How has it affected DOM? Price? Other considerations? These day, I feel like a house that just got hit during Harvey doesn't affect buyers nearly as much as homes that have taken on water multiple times.
My interest, obviously, is looking at a potential flip that has flooded twice and trying to gauge how to account for the impact of flooding in my analysis. FWIW, the events were 1" on Tax Day and 5" during Harvey. Moreover, I'm thinking a general discussion on the topic could be a resource for this ever-so-soggy investing community.
I have some experience, my previous home was located in oft-flooded Bear Creek neighborhood. It flooded in Tax Day and a few of my neighbors sold roughly 6 months after the flood. The neighborhood was in decent shape by that point and the homes were remodeled. In both cases, the sellers got near asking (0-5% less) but did have DOM of 30-45. Lots of lookers, many viewings, but many buyers that were scared away when they learned the house had flooded. After Harvey, most of my neighbors (including myself) sold As-is to investors but the neighborhood has been much slower coming back and many of those flips aren't completed yet, so I don't have a lot of info on how the market is rebounding this time. Again, FWIW, many of the investment offers came from international interests and/or through a local representative negotiating for international buyers.
Cheers!