Selling a Flood Zone or Storm-Damaged Home in Wilmington, NC

0:00Welcome to Real Stories with Buddy Blake. Today's episode features real estate insights from Buddy Blake. Let's dive in. So, Buddy, I got to ask you about something right off the bat here, flood zones.

0:17I feel like that's just, that's a coastal thing, right? Like that's not something people dealing with real estate inland really have to think about. Oh, it's huge down here. I mean, on almost every home I show or list, buyers are asking about it before we even get to price, elevation, insurance cost.

0:37Did the house ever take on water? That's like question one, two, and three. Wait, before price, really? Before price.

0:46And look, that's not a red flag. That's not buyers being difficult. That's just how people shop when they live near the water. It's smart, honestly.

0:56Okay, so that actually makes sense when you say it that way. So whether somebody's in Wilmington proper or out toward the Sound, they're going to get these questions no matter what. Every time, doesn't matter if it's a house on a slab three blocks from the river or a house up on pilings near the beach, a serious buyer today is checking the flood zone map, asking about elevation, wanting to know what happened during past storms.

1:23So what happens if a seller just doesn't have good answers for that? That's the thing. If you dodge those questions or you seem surprised by them, buyers start wondering what else you're not telling them.

1:34But if you just answer plainly, they relax. They move forward. It's really that simple. I love that.

1:41The sellers who do best are the ones who just have the answers ready before anybody even asks. That's exactly it. Okay, let's talk disclosure then, because I feel like that's where people get nervous.

1:52Like, what if you're not even sure how to describe something? Right, so in North Carolina, sellers fill out a disclosure statement, and the right move is just answer it truthfully. But here's the part people don't realize.

2:05If you're unsure how to characterize something, like a past claim or water that came close but didn't actually get in, that's not a guess you make on your own. So who do you go to for that? A real estate attorney.

2:19That's a question for them, not something you figure out based on a hunch. My team actually includes an hour with an attorney for exactly this kind of thing, so you're not filling out that form blind. Oh, that's smart, because I imagine getting that wrong is way worse than just asking the question in the first place.

2:38Way worse. So once that's handled, then we start pulling records together. invoices, age of the roof, the HVAC system, any elevation certificate you've got, your insurance history, what you're paying now, what you did after any past storm.

2:56None of that's actually required, though, right? Like, a buyer's not going to demand a folder of invoices. No, none of it's required reading, but it turns a scary question into a confident answer. Think about it.

3:09A buyer asks, did this house flood during the last hurricane? And you hand them a folder with invoices and a clear explanation, versus you just shrug. Yeah, the shrug's not going to cut it. Not even a little.

3:26So let's talk insurance for a second, because you mentioned that's part of the buyer's math now, not something they figure out after the fact. Yeah, that's changed a lot. Buyers who get insurance quotes early, before they even write an offer, they tend to write stronger offers, because they know exactly what they can afford to carry.

3:45That's a good point for sellers, too, isn't it? Like understanding what buyers are thinking through helps you know what's coming. Exactly. I actually wrote up what I tell buyers before they make an offer.

3:58It's a coastal insurance guide, and it's linked in the show notes. It's worth reading, even if you're the seller, because it tells you what questions are coming your way. Okay, let's get into the actual selling process.

4:11You mentioned a pre-market inspection. Walk me through that. So before we put a flood zone or storm history home on the market, I like to have it inspected first, and my team covers that.

4:23That inspection finds moisture issues or storm-related wear before a buyer's inspector finds it. And why does that matter? Finding it first. Because once you know what's there, you get to decide how to handle it, fix it, credit for it, or disclose it and move on.

4:43You're making that call on your own timeline, instead of scrambling during a buyer's due diligence period. Oh, that's huge, because that due diligence scramble sounds stressful. It can be.

4:57That's part of how we approach every listing on my team. So how do you even price a home that's got flood history? That seems tricky. I don't guess on it, I'll tell you that.

5:08I pull real sales of comparable homes, including other properties that face similar flood situations when the data allows it. And I show sellers what actually happened with those sales, not just my opinion. So it's data-backed, not a gut feeling.

5:24Right. And if somebody wants to see how homes in their area are actually performing before they list, there's a whole resource on Wilmington Market Insights linked in the show notes. And if you want to talk specifics about your actual street, there's a piece on selling a home in Wilmington that walks through how we handled it.

5:44Okay. Now what about when the damage is actually serious? Like significant damage? What happens then?

5:51Yeah, some homes have taken real damage. Enough that listing as-is just means a smaller pool of buyers and a much longer conversation about repairs. In those cases, I can bring in a cash offer from an investor partner.

6:08What does that look like for the seller? No repairs, no showings, you pick the closing date. But I'll be straight with you. That offer's going to be below market value.

6:18And I'll always show you exactly how far below, side by side with what listing as-is might actually bring. So you're not pushing people toward the cash offer. You're just laying out both options.

6:31That's exactly right. Sometimes the cash offer's the right call, sometimes it isn't. But you should never have to choose blind. That's a good way to put it.

6:42And you mentioned timing too, like hurricane season actually plays into when you list. It does. If you're weighing when to list a storm-affected home, I've got a hurricane readiness post that covers how the season shapes buyer behavior and inspection timing along this coast.

6:59That's linked in the show notes too. This has been such a helpful rundown, buddy. I mean, I came in thinking flood zones were kind of a scary topic. And now it just feels like there's a process for it.

7:11There is. And if you're sitting on a home with flood zone questions or storm history and you're not sure where to start, just give me a call or send a text. 395-1000.

7:23We'll go through it together and figure out the right path for your house. Love that. And the full article's linked in the show notes if you want to dig into any of this deeper. Buddy, thanks so much for breaking this all down.

7:35Anytime. Thanks for having me. Thanks for listening to Real Stories with Buddy Blake. For the full article and more, check the show notes.