- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: What will the flood do to the housing market here?
Posted on 8/15/16 at 11:38 am to Kujo
Posted on 8/15/16 at 11:38 am to Kujo
quote:
The buyer had funding issues and we had to push the close back until Monday, but it was at my discretion.....should I back out? She already was offering me 6% over asking....but will my house be even more now?
If you granted the extension, how can you back out?
Do you want to go through the whole exercise again of listing the house, finding a buyer, etc etc?
0
Posted on 8/15/16 at 2:43 pm to dualed
The market was crazy on the Northshore after Katrina. Within the first few months, prices shot up around $100K in some dry neighborhoods. Didn't take long for the market to correct itself though. For Katrina, my home was dry but the area my practice was in flooded severely, so I put my house up for sale right away at "normal" pricing,. I was going to move to Picayune and open a new practice. Buyer fell through, and I changed my mind and decided to ride it out. A month later prices went through the roof. I was so glad I hadn't sold for $100K less. Life returned to normal much quicker than I expected. My life would have been so different if I had followed through on those initial plans. The moral is that many people will be in a panic and make rash decisions. It's a situation that is hard to be prepared for if you haven't been through it before. In some areas the market will be devastated and may never return to normal levels (went through this in Chalmette after the 5 year flood cycle kicked off by May 3, 1978). In other areas, like parts of Slidell that stayed dry even through a test as severe as Katrina, prices will soon skyrocket (especially when the flood insurance money starts flowing in) as demand outweighs supply. After a year or so it will return back closer to normal levels.
This post was edited on 8/15/16 at 2:44 pm
Posted on 8/15/16 at 5:30 pm to iknowmorethanyou
I live downtown it never floods...some of the highest land in baton rouge area
Posted on 8/15/16 at 5:48 pm to tigers1956
I know my neighborhood will skyrocket. I bought my house a year and a half ago and the price already went up 50k in value and since every house never even got a hint of the flood water my house should easily by worth 100k more than I paid. It doesn't matter though since I have no desire to sell
Posted on 8/15/16 at 5:50 pm to tigerbacon
So you'll have to pay more in property taxes now, congratulations
Posted on 8/15/16 at 7:42 pm to rocket31
I'm curious as to the purchase of flooded properties. For the people wanting to move from their flooded home, what will the property value be one month, six months, or one year after this? Also, will there be an opportunity to buy abandoned property from the state/municipality, and how much does that usually sell for?
Posted on 8/15/16 at 9:39 pm to Fulwar
It's interesting to see the lack of available properties on Realtor.com right now as compared to the abundance of homes on a slower updating site like zillow.com. I wonder if houses are being taken off the market in anticipation of increased demand... I guess we'll see.
Posted on 8/15/16 at 10:11 pm to Fulwar
I think it's a sellers market, but you have to imagine being in the rental market is going to be the place to be for short-mid term investors.
Posted on 8/15/16 at 10:15 pm to tigerbacon
quote:
I know my neighborhood will skyrocket. I bought my house a year and a half ago and the price already went up 50k in value and since every house never even got a hint of the flood water my house should easily by worth 100k more than I paid. It doesn't matter though since I have no desire to sell
I love how people come on here to boast about making a great deal on a home, but have no desire or clue on how to capitalize. You are on a business board so expect people to throw some shade.
Posted on 8/15/16 at 10:38 pm to dualed
I have heard that there have been 28k flood claims filed. That is a lot of inventory off the market for 6 months-1.5 years...
Posted on 8/16/16 at 10:46 am to Rakim
quote:
I love how people come on here to boast about making a great deal on a home, but have no desire or clue on how to capitalize. You are on a business board so expect people to throw some shade.
Capitalizing is often difficult in situations like this. The other poster's situation is just like mine was. Let's say I sold my house after Katrina (or he sells after this flood). Yes, I just made the quickest $100K I'll ever make in my life. But now I need a place to live. Good luck finding rental property in an area where tens of thousands are now homeless. Buy a new house ? I can't move up to a "$100K bigger and better" house because now everything remotely close to my area is likewise overpriced. To buy a house similar to what I had at normal values and pocket the $100K profit, I need to move to a city that is at LEAST in another school district (though realistically more like 50+ miles away) - which means my kids have to change schools, find new friends, etc. And now I have a MUCH longer commute to work. Something like this that triggers a major temporary increase in home value is not always easy to capitalize on. I'd love to hear some realistic suggestions though, because a lot of people will be in this situation - and if there are realistic ways to capitalize, it's a once in a lifetime opportunity.
Posted on 8/16/16 at 1:58 pm to 911Moto
My novice common sense says the rental market will be the place to boom next. Lot's of people without flood insurance, without the means to repair and looking to sale. Buy cheap, gut, refurbish and sell at market value or rent.
Posted on 8/16/16 at 2:03 pm to 911Moto
Wouldn't one thing to do is get your home reappraised while values are high, then cash out some of that equity to purchase depressed properties, rehab them, and sell?
No one has to move in that scenario, and you'd be doing a great service as well.
I'm admittedly not all that great with property financing angles so forgive me if I made a mistake somewhere.
No one has to move in that scenario, and you'd be doing a great service as well.
I'm admittedly not all that great with property financing angles so forgive me if I made a mistake somewhere.
This post was edited on 8/16/16 at 2:05 pm
Posted on 8/16/16 at 2:55 pm to Teddy Ruxpin
quote:
Wouldn't one thing to do is get your home reappraised while values are high, then cash out some of that equity to purchase depressed properties, rehab them, and sell?
The million dollar question is, how will the appraisers appraise these properties, and how will the banks view them.
There was a rather large number of houses bought in 2006 at inflated prices, that were foreclosed upon several years later when prices returned to normal and people walked away from them.
Will appraisers this time factor in some "exception" and adjust values accordingly? Will the banks add LTV overlays to purchases and refis?
Posted on 8/16/16 at 2:59 pm to Fulwar
quote:
I'm curious as to the purchase of flooded properties. For the people wanting to move from their flooded home, what will the property value be one month, six months, or one year after this?
The appraisers can handle this - they have experience here. A gutted house is worth more than one that has yet to be gutted. Property values will be basically figuring out what the totally fixed house would be worth, and reducing that by the estimated cost of repairs.
Understand that certain mortgage programs such as FHA may have issues with writing mortgage insurance for gutted properties unless at the time you have a plan for remediation.
quote:
Also, will there be an opportunity to buy abandoned property from the state/municipality, and how much does that usually sell for?
That will depend upon whether the state/parish puts in some sort of Road Home type program, which I am not expecting after all the fraud the last time.
Second option would be as people walk away from homes and they are sent to either foreclosure or tax sale.
Posted on 8/16/16 at 4:55 pm to dualed
It did in Cedar Rapids, but our flood was over 1B in damage. I think private property was 858MM, and public buildings more than that. Bad deal for me.
What is the estimate there for dollar amount of residential damage?
Rental property owners here got both CDBG monies, and LOST monies. CDBG will be tied to affordable housing. You'll get. The same if your state and local gvts are organized, and if there is a federal declaration.
State is the eligible recipient. They make a state action plan, and. Locals get monies from there. It takes time as FEMA comes in a does an audit, probably 5 years down the road. Both state and local could pay funds back.
I was pretty involved here. We developed business jump start out of federal monies, first in the nation business funding, and developed a rental property rehab program from federal monies as well.
So will rental houses get rehabbed? Depends on level of organization. Will bargain rentals become available? Yes. Will there be opportunity to flip? Our guidelines were the recipient needed to own for five years.
It was a long painful process, but if there are some organized rental property and business owners down there with some political connection, I'm happy to turn over what we developed.
I've been thinking about. You guys down there. Lots of good people on the outdoor board doing great work.
You might want to share this post on both outdoor and ot, and see if there are some people willing to organize, get aggressive, and get some. Recovery money directed where it might not otherwise be directed.
Flood cost me 700,000, and I got about 125,000 I would have never gotten as a landlord and business owner.
Only good thing that came out of it was the local election, and the business guys I met when we got organized. They actually had us meet the head of FEMA at that time, and I suspect some of the programs we developed can be copied.
A word of warning, if you lost your arse, and lack patience, this is going to be tough. We had shouting matches with elected guys regularly. It was tough, and I'd never want to go through it again.
What is the estimate there for dollar amount of residential damage?
Rental property owners here got both CDBG monies, and LOST monies. CDBG will be tied to affordable housing. You'll get. The same if your state and local gvts are organized, and if there is a federal declaration.
State is the eligible recipient. They make a state action plan, and. Locals get monies from there. It takes time as FEMA comes in a does an audit, probably 5 years down the road. Both state and local could pay funds back.
I was pretty involved here. We developed business jump start out of federal monies, first in the nation business funding, and developed a rental property rehab program from federal monies as well.
So will rental houses get rehabbed? Depends on level of organization. Will bargain rentals become available? Yes. Will there be opportunity to flip? Our guidelines were the recipient needed to own for five years.
It was a long painful process, but if there are some organized rental property and business owners down there with some political connection, I'm happy to turn over what we developed.
I've been thinking about. You guys down there. Lots of good people on the outdoor board doing great work.
You might want to share this post on both outdoor and ot, and see if there are some people willing to organize, get aggressive, and get some. Recovery money directed where it might not otherwise be directed.
Flood cost me 700,000, and I got about 125,000 I would have never gotten as a landlord and business owner.
Only good thing that came out of it was the local election, and the business guys I met when we got organized. They actually had us meet the head of FEMA at that time, and I suspect some of the programs we developed can be copied.
A word of warning, if you lost your arse, and lack patience, this is going to be tough. We had shouting matches with elected guys regularly. It was tough, and I'd never want to go through it again.
Posted on 8/16/16 at 8:54 pm to wickowick
quote:
Posted
quote:
28k flood claims filed. That is a lot of inventory off the market for 6 months-1.5 years...
Look at total sales versus total homes and then run the percentages. All 28K were not on the market. True that there's no chance for them to be now but some may still get bought out by flippers or rehab types. It will distort the market but again, the lack of inventory will not be as pronounced as that raw # makes it seem, and it will be softened by the number of folks who capitalize on the lack of inventory by putting their homes on the market during a time when they otherwise ordinarily wouldn't.
I'm interested in knowing where you got your #...did you get an email about the #'s as of Noon today? Wondering if we know each other...
Posted on 8/17/16 at 6:44 am to seawolf06
quote:
?Posted on 8/14/16 at 9:51 pm to dualed
If you are dry, your value increases significantly. If you got water, your value decreases likely. Not just because of the water, but because everyone now knows the safe places versus the potential hazards.
This is exactly what happened here after 2010 Nashville floods and is what I would expect to see there. My parents are over in Parker Place and dry as a bone. That little hood is going to skyrocket IMO.
If selling I would try to sit 4-5 years and let time heal wounds so to speak. You will get beat up selling this quickly after event. Prop Managers will be licking chops for rentals, as some will over react to flood and give property away.
Rental market will be fierce next 12-24 months.
Posted on 8/17/16 at 9:42 am to rocket31
quote:umm. No offense but I am not sure you realize how property taxes work
So you'll have to pay more in property taxes now, congratulations
Posted on 8/17/16 at 9:57 am to dualed
Paid $69,000 for a 1 BR Condo 1 month before Katrina.
Sold it 6 months later for $105,000
Property values are going to skyrocket.
Sold it 6 months later for $105,000
Property values are going to skyrocket.
This post was edited on 8/17/16 at 9:58 am
Page 2 of 3
Popular
Back to top
Follow TigerDroppings for LSU Football News