WILMINGTON, NC (WECT) - Flood-damaged homes coming to market is the latest trend in local real estate.
“We’re seeing homes for $95,000 that pre-Florence may have sold for $285,000 and up” says realtor Pam Wooddell with Live Oak Real Estate.
Wooddell is seeing more flood damaged homes making their way to market.
“Most of these that I’ve seen are a combination of insurance and mortgage company coming to some agreement over who’s going to get what, allowing the homeowner to sell the shell,” says Wooddell. “Keep in mind, people who have had this happen to them, they’re marked. They’re badly shaken.”
In the River Bend Community of Burgaw, many flooded homes are riverfront. Some of them are selling at roughly a third of their market value.
Realtors say at that price point, they’re not on the market for very long. For some people, it’s seen as the opportunity of a lifetime, a chance to get into a home and in a location that otherwise may be out of reach.
“These homes more than likely won’t qualify for a traditional mortgage,” says Kathleen Baylies with Just for Buyers Realty. “It’s a renovation loan that allows them to factor in the cost of repairs. The appraisal is done subject to those repairs. It’s a little higher interest rate and sometimes requires a little more down.”
“It’s all about risk tolerance and only the prospective buyer can answer that question,” Gooddell added. “There’s the chance these properties could flood again. Insurance could be costly but remember, no matter how badly Mother Nature hits us, there’s an opportunity for the seller to regain what he needs and for the buyer to find something they need.”