Elevation Certificates Explained for Sarasota Buyers: What You Must Know Before You Close

0:00Welcome back to My Real Estate Podcast with David Libertor. I'm your host, and today we're diving into something that a lot of people don't think about until it's way too late, elevation certificates.

0:12David, you work with Sarasota buyers all the time, and I know this is a huge deal down there. So what exactly is an elevation certificate, and why should someone buying property in Sarasota actually care about it?

0:24Great question. So an elevation certificate is basically an official document that shows the elevation of a property relative to the base flood elevation in your area.

0:35It's prepared by a licensed surveyor, and it's really important because it determines a lot of things, especially your flood insurance rates and requirements.

0:45In Sarasota, where we're dealing with coastal properties and flood zones, this document can literally save you thousands of dollars or cost you thousands, depending on what it says.

0:55OK, so it's not just some nice to have thing. It actually impacts your wallet. That's interesting. So when you're working with a buyer, at what point in the process do they need to get this, and who actually orders it?

1:09So ideally, you want to get this done early, but realistically, it usually happens during the due diligence period of your contract. The buyer typically orders it, or sometimes the lender requires it before they'll fund the loan.

1:23You hire a licensed surveyor to come out and do the work. It's not super expensive, usually a few hundred bucks, but the information it provides is invaluable. And here's the thing.

1:34If you're in a flood zone, your lender absolutely will require it before closing. Oh, wow. So the lender's basically forcing your hand on this.

1:43That makes sense from their perspective. So let me ask you this. What happens if the elevation certificate shows that your house is actually below the flood elevation?

1:53Like, what are the real consequences there? Yeah, that's where it gets real. If your property is below the base flood elevation, you're going to be required to carry flood insurance.

2:02And I mean required. Your lender won't let you close without it. The premiums can be really significant, sometimes thousands a year, depending on how far below the elevation you are.

2:14Plus, you're at higher risk for actual flooding, which affects your property value, your ability to resell, all of it. That's why getting this certificate before you make an offer is so smart.

2:26So you could literally be looking at a property that seems like a great deal, but then you find out the elevation certificate changes the whole equation.

2:37Has that happened to you, where someone's come to you after they've already made an offer? Oh, man. Yeah.

2:43I've seen buyers get into contracts thinking they're clear of flood insurance, and then the certificate comes back, and it's a totally different story.

2:51At that point, you're either renegotiating with the seller, which is awkward, or you're eating the extra cost. It's so much better to know going in.

3:02That's why I always tell my buyers, get the elevation certificate done before you even make an offer. It's like $50 extra in the grand scheme of things, and it gives you real leverage and real information.

3:13That's smart. So it's basically due diligence at its finest. You're protecting yourself before you commit. Now, for someone who's not in a flood zone, do they still need to worry about this, or is it really just a coastal Sarasota thing?

3:28It's definitely more critical for coastal and flood zone properties. But honestly, if your lender asks for it, you need it. And in Sarasota, a lot more properties are in flood zones than people realize.

3:40You could be inland and still be in a flood zone because of how the maps are drawn. So my advice is always, check your flood zone status first. If you're in a zone, get the certificate.

3:52If you're not, you might still want it just to have it on file, especially if you're thinking about future resale value. That's really practical advice.

4:00So basically, know your flood zone status. And if there's any question, just get the certificate done. It's cheap insurance, literally. Before we wrap up, what's the one thing you wish every buyer knew about elevation certificates before they started shopping?

4:16That it's not something to be afraid of. It's something to be informed about. Get it done early. Understand what it means for your specific property.

4:26And make your decision with full information. Don't let it surprise you at the closing table. That's the worst place to find out your flood insurance is going to cost you an extra $3,000 a year.

4:37Solid advice. David, thanks so much for breaking this down. I think a lot of people are going to feel way more confident about this process now.

4:46If anyone's looking to buy in Sarasota and wants to talk through this stuff, you're the person to call. Thanks for being here.

4:53Thanks for having me. Always happy to help buyers feel more prepared.