How Much Value Does A Property Lose If It Is Rezoned Into A Flood Zone?
Fema rezone a portion of my city where I’m looking to buy a home. The property is about 75 feet from a small creek, which is now zoned as AE flood zone. How much does this affect the value of the property?
Category: property
It could be a lot. In some areas you can’t add on to a property that is in a flood zone.
You will just basically have to purchase flood insurance, but this should not affect your market value. It may make some potential buyers less interested, but there are hundreds of things about a property that can do that.
Very much. When I was applying for a mortgage my house was near the Brandywine Creek. The creek was designated a flood zone. I was refused a mortgage until I corrected the bank with a typographic map. My house was on top of a hill. The whole town would flood before my house. But you get my point?
It can affect value, because when you try to sell, people willl be concerned about the flood plain. Flood insurance can be very expensive to obtain. I’ll assume since it wasn’t in a flood zone and now it is, the house wasn’t constructed for flood standards (up on pillars for instance) so the value may be effected.
I wouldn’t worry so much about the value, I’d be more concerning about the location. Look at all the people in Iowa who were told that the rivers and creeks never flood so they didn’t buy flood insurance, now look at those poor souls, depending on their insurance, they may not be able to rebuild the same home. The problem with your situation lies in the fact that you would have to purchase flood insurance if you buy the home and depending on where you live, this could become very pricey for you
It depends on where it is.
I live in coastal NC and a lot of property was changed to be included in the flood zone. All it means is that you will have to carry flood insurance. Property values were not negatively affected here when they re-zoned.
good luck!