I’m sure we’ve all heard about the nasty flooding happening in the Great Plains areas. I keep seeing pictures of houses nearly submerged completely. Obviously, these houses are near total losses. So what happens when the waters recede? Insurance obviously pays out, but do people move back in to their soggy houses and try and do repairs? Do they just move somewhere else where they don’t get flooded every other year? What I’m getting at, is this a good buying opportunity? Is it a semi-humanitarian act to market to them to buy their houses at big discounts so they can move on? Or is it preying on the already beaten? Thoughts? Comments? Experiences?
It’s the same deal as New Orleans was…some will stay and try to rebuild their lives and some will say “…the Hell with it” and move. There were a couple guys here that were in southern Louisiana, toughed it out, and were able to get some great rehab deals. One was a Member named “Elephant Nest” (http://www.reiclub.com/forums/index.php?action=profile;u=20268)…take a look at some of his posts (some have pictures of his rehabs.
I am betting that the majority of those homeowners did not purchase flood insurance and, consequently, there will not be any insurance recovery. I am guessing that a lot of those flood damaged properties will be condemned, and will be lost to foreclosure.
I was living and selling real estate n San Diego when there was a “100-year flood”. Hotel guests in Mission Valley were being taken out in rowboats. Freeways were diverted. It was huge, everyone just left work and went home.
There was lots of flood damage in the town of Lakeside. with water halfway up to roofs. The Lakeside real estate market died for a while.
A year later I was astonished that the flood appeared forgotten. Repairs had been made, and people started buying in the flood plain again. Just like in fire areas, people’s memories are short.
So buy at a great discount. You can sell those houses as soon as the clean-up is done and the floods forgotten.