Selling a Water Damaged Home

by Ann Hayward 05/17/2020

Photo by Monkey Business Images via Shutterstock

After a significant storm or catastrophic event, you may determine that moving to a different climate is right for your household. The question becomes, do you repair all the damage to your home before you sell it, or do you offer it “as is” so that the buyer takes on that cost. Sometimes, if you take care of the damage problem quickly, you’re only left with minor repairs. Often, though, it can seem like the entire house needs fixing.

To figure out which is right for your situation, review these pros and cons of each choice.

Making Repairs vs. Selling "As-Is"

Repairing water damaged areas will net you more if you have the resources and the time to make the repairs before you sell. You can ask a higher price when you sell. But often, this process involves waiting for insurance money, hiring contractors, completing repairs and having the adjuster inspect the work. Meanwhile, you must find a place to live while they fix the water-damaged areas. That means spending a lot for out-of-pocket expenses.
Additionally, you’ll need to put extra effort into making sure that buyers feel comfortable and confident in the house’s repairs, which means hiring professional inspectors, documenting mold mitigation and repairing even minor damages. All this might not be worth the investment.
When you don’t have the time or money to fix the repairs, you can sell your house “as-is," water damaged and all. You won’t get as much money for the property, but you can get out of it and into a new home sooner. In many instances, your knowledgeable agent can market to investors that willingly give you a cash sale offer. The best part about it is you won’t have to do anything. All the money you would have spent on repairs, contractors and professional inspectors can stay in your pocket or go toward your new home.

Selling to an Investor

Selling a water-damaged house to an investor is one of the best options. An investor will pay cash for your property without requiring you to fix anything. Here are the best practices to make it a great sale:

Do not hide the water damage! Whatever you do, don’t try to hide that your home experienced flooding.
Legally, whether selling "as is" to an investor or an interested buyer, disclosing water damage is a requirement; this is because water damage may introduce harmful chemicals, materials, or pathogens into the home, which can lead to mold growth in the future. Trying to cover up water damage can land you in court. Do yourself a favor. Let any buyer know about past water damage in your home.

How to Sell a Flood-Damaged House

If you have the money from an insurance payout, make the repairs. You can fetch a higher price on the market. But when this investment isn’t worth the cost, it’s often a better choice to sell your water-damaged home to an investor instead. If this sounds like a good possibility for you, ask your real estate professional to market your home to investors so you can resettle your household in a better home.

About the Author

Ann Hayward

Born in Philadelphia and raised in the suburbs, Ann Hayward got her Pennsylvania real estate license at age 18 even before going to college. This second-generation real estate professional followed in the footsteps of her father and two uncles, inheriting their passion for the business. Licensed in DC, Maryland and Virginia, Ann is accomplished in her career, with numerous designations including SFR, SRES, PSA, WHC, and multiunit Housing Development Finance Professional (HDFP) from the National Development Council. She specializes in Prince Georges and Montgomery Counties, Northern Virginia and Washington, DC, all jurisdictions where Ann has lived and knows very well. In addition to her professional expertise, she owns and manages personal investment property, understands and has been involved in the renovation/remodeling process, and has great resources which she shares with clients. When you hire Ann to represent you, she will make your buying or selling experience an enjoyable, rewarding one. Her compassion, sensitivity to her clients’ needs, eye for detail, and ability to see the big picture when guiding you through a purchase or sale are unique assets that will ensure your success. A diverse and relevant background also gives Ann a distinct edge. For 30 years, she worked in fast-paced, high-pressure television and theatrical production, attaining the highest achievement – DGA membership as a Director, and as an award-winning staff and freelance writer. Her keen audio visual skills and design sense benefit sellers in marketing their properties, and are invaluable in helping buyers see the potential of space. A true renaissance woman, Ann was also an income tax professional and office manager for H&R Block, so she thoroughly understands the tax and financial implications of acquiring and selling real estate. Her superior organizational skills are further evidenced as owner of a downsizing/professional organizing business, Managed For You, which allows her to connect with everyone from millennials to boomers and seniors, whether for small space planning or assisting with major decluttering and transitioning. Ann holds an AB in American History from Simmons College, Boston, plus attended Robert Wagner Graduate School of Public Administration where she was a candidate for Doctorate. She additionally studied Film Direction at the American Film Institute in LA, and was a Stanford University post-graduate Professional Journalism Fellow. Personally, Ann is an avid if not very good golfer, and the co-founder of a nonprofit 501c3 organization offering educational guidance, tutoring and counseling for youngsters from elementary school through college admission. She sits on the board of trustees of a nonprofit educational film production corporation as well. (202) 494-6252 [email protected]