Selling a flood-damaged house can be done by identifying the best sale route for your situation, like whether you’ll sell to a home investor “as is” or put your home up on the private market after some renovations, and adhering to your local legal disclosure requirements.

It may be the last thing homeowners will ever want to deal with, but unfortunately, over 23 million US homes sit on property at risk of flooding. As the climate crisis deepens, we’re experiencing more and more extreme weather events that leave many homeowners vulnerable to flood damage. This can be particularly troubling if you ever want to sell your house.

As the

licensed broker

and super app for homeowners,

Jerry

wants to make this process a bit easier and guide you through the dos and don’ts of selling a flood-damaged house. We’ll cover flood damage devaluation, the selling process, the best ways to minimize and repair flood damage, and how you can easily update your

home insurance

policy to work the best for you.

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Flood damage devaluation

Floods occur in different ways throughout your home—burst pipes, heavy rains causing a nearby river to overflow, a leaky roof—but there will likely be some level of damage in any flood event.

Of course, it would be better to deal with a minor flood that would require nothing more than tossing out a rug or two, but the fact that your house flooded in the first place is enough for home value depreciation.

Homeowners could see a 20% to 30% decrease in their home’s value after a flood. However, the total amount of devaluation will depend on the extent of the damage and the likelihood of future flood events.

MORE:

How to deal with a flooded basement

When to consider repairs

If you’re deciding whether to repair all damage, some damage, or none, consider these questions:

What is the extent of the damage?

Can you afford the necessary repairs?

More minor flooding events may create some water damage but leave the structure of your home in relatively good standing. Some major flooding events, though, can devastate your home’s structure and your belongings, leaving the place uninhabitable.

If it makes sense in your budget, making the necessary repairs will allow you to sell your home for closer to its actual market value. Hire licensed professionals to do the repairs to avoid safety risks and even more damage.

Check out financial aid options if repairs aren’t in your budget. FEMA has flood damage grants available, and there are charitable organizations all over that have flood assistance programs.

However, if your repair budget, even with financial aid, doesn’t work out to the amount you’d need to fix it, or you simply don’t want to be bothered with making the repairs, you could consider selling your flood-damaged house “as is” to cash investors.

MORE:

Can you flip a house with no money?

How to sell a flood-damaged house

The process of selling a flood-damaged house will vary depending on the amount of damage, your post-flood remediation actions, the risk of future floods, and your negotiation tactics.

But there are some steps you can take to make the process easier and less stressful and to make your payout the best it can be.

Let Jerry find you the best homeowners insurance policy for your needs

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Contact an experienced real estate agent

An experienced real estate agent is an incredible asset in any selling process—but they will be especially helpful in the time and money-sensitive process of selling a flood-damaged house.

Get in contact with a real estate agent who has experience with flood damage sales and selling to home investors. They’ll help you through the crucial selling steps, pricing points, negotiations, and disclosure laws in your area.

Know your local disclosure laws and keep to them

You must adhere to the disclosure laws in your area when selling a water-damaged house. If you fail to disclose previous flood events, the potential for future flood events, and the extent of water damage, you could be at risk of a lawsuit.

Each state has different disclosure laws, so you’ll need to know what’s required in your area. This is when having a knowledgeable real estate agent or attorney can really help you. They’ll be able to guide you in disclosing the details of your home as thoroughly as possible. In general, you’ll need to include:

The number of times your house has flooded and the extent of the floods

Your house’s latest

FEMA flood map

information can help predict the risk of future floods

Any remediation or repair efforts you’ve made, including any relevant receipts and invoices, insurance claim records, and mold remediation certificates

MORE:

How to prepare for a home inspection

Decide on the level of repairs you want to invest in

If you know that you want to sell your flood-damaged house, consider making repairs before you start the process.

It’s important to recognize the potential of a home value depreciation. Extensive damage from a rising nearby river is likely to reduce your home’s value by 20%-30%, but minimal damage from something like a sudden burst pipe (that has been fully repaired) is unlikely to reduce your home’s value by much if at all.

With the potential sales price deduction in mind, consider how much you’ll be able to invest in repairs.

A knowledgeable real estate agent can help you define what improvements and renovations are worth it and which ones you can skip depending on your selling goals.

Sweeten the deal with transferable flood insurance

It’s never a bad idea to throw in an incentive. Transfering your

flood insurance

policy will make buying your house much easier for a potential buyer as you will have done most of the hard work.

Let Jerry find you the best homeowners insurance policy for your needs

* checking your rate won’t affect your credit score

Shop Now

* checking your rate won’t affect your credit score

Sell your flood-damaged house “as is”

Selling a house “as is” to a home investor is a great option for anyone who doesn’t want to, or cannot afford to, put their time and money into house renovations.

If you can take a price cut on your house’s prior market value, selling your flood-damaged house to a cash investor is often quick and easy. Reputable home investors will not intentionally lowball you, but there will naturally be a price reduction in an “as is” sale. The investor will calculate rough estimates for necessary repair and renovation costs and take that out of their offer price.

Be sure to research interested investors before closing any sales, though, and make sure the investor is experienced and reputable so you don’t get taken advantage of.

MORE:

What to do with water in a crawl space

Minimizing flood damage

When floods occur in your house, take action to mitigate the damage as soon as you safely can. Water damage can be extensive, but the water itself also may carry toxic chemicals, sewage, and harmful bacteria that can pose a serious health risk to those exposed.

Here’s how you can minimize the damage to you and your house:

Wear safety gear. Put on tall waterproof boots, sturdy waterproof gloves, face masks, and safety eyewear before wading through standing water or handling waterlogged items

Turn your electricity off if you can safely reach your breaker

Leave your HVAC system off. Mold can start to develop in 24 to 48 hours if the area is not completely dry, so keep your systems off until they can be professionally checked for mold

Document everything. Make your

water damage insurance claim

easier by taking pictures and videos and using some sort of measuring device to record the flood levels

Drain the water away as quickly as you can to avoid the onset of mold growth. Use buckets, wet/dry vacuums, dehumidifiers, water pumps, or professional water removal services

Throw out affected items that can’t dry easily, like mattresses, rugs, pillows, upholstered furniture, and carpets.

Use a disinfecting detergent to clean leftover hard surfaces.

Contact your insurance company as soon as possible to get guidance on your next insurance claim steps.

Flood events can be incredibly stressful and heartbreaking, but they can be made just a bit easier by taking one step at a time and trying to be as thorough as possible.

How to find affordable home and flood insurance

The last thing you need when your house floods is to realize your

home insurance

doesn’t actually work to support you. And then you’re worried about taking care of this massive issue on your own and how you’re going to be able to switch your insurance policy. Let

Jerry

take some of that stress and unknown away.

After answering a few questions in the easy-to-use app, Jerry will send you custom quotes from top home insurance providers based on your demographics, home value, and location, finding you the coverage you need to protect your home and your loved ones. Once you make your choice, insurance super app Jerry will take care of all of the details—including pesky paperwork.

“
Jerry
was wonderful! I used it for my auto and renters policies. I trusted it so much that I signed up my homeowners insurance under Jerry as well. All of the agents are amazingly nice and knowledgeable.” —Mary Y.

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FAQ

How much will a flood event devalue my house?

It really depends on the extent of the flood event, how likely future flooding is, and what kind of repair and renovations you made after the flood, but you could see as much as a 20%-30% decrease in your home’s value.

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