Navigating Real Estate After the Storm: Essential Tips for Buyers & Sellers
By Casey Gilling, Kidd & Leavy Real Estate
⸻
1. Immediate Concerns: What to Watch for After a Storm (For Sellers & Buyers)
• For Sellers:
A) Assessing and Addressing Property Damage
• Repairs: If your home has sustained any damage from the storm, address repairs immediately to ensure that the property is in sellable condition. Here’s what to look for:
• Roof and Gutters: Ensure the roof is intact, and gutters are clear to avoid water damage down the line.
• Windows and Doors: Broken or damaged windows and doors should be fixed or replaced.
• Basement & Foundation: If you notice flooding or water damage in your basement, it’s important to get that addressed promptly. A flooded basement can be a major turn-off for buyers.
• Landscaping: Damaged trees, bushes, or fences should be trimmed or replaced for curb appeal. Fallen branches or trees could also pose a risk to buyers.
B) Transparency & Disclosure
• Full Disclosure: Sellers are legally obligated to disclose any storm-related damage or repairs. Be transparent with buyers about any damage, previous claims, or repairs done post-storm. This builds trust and can help avoid future legal issues.
• Provide Documentation: If repairs were made, keep records of the work done, receipts, and warranties for anything replaced or fixed. Buyers appreciate the transparency and knowing that the home has been cared for after the storm.
C) Adjusting to Market Conditions
• Price Adjustments: Due to storm damage concerns, some buyers may hesitate or try to negotiate lower prices. Consider adjusting your asking price or offering repair credits to appeal to buyers who might have concerns.
• Staging the Home: If you’ve completed repairs, consider staging the home to highlight its resilience and the quality of the updates. A fresh coat of paint, updated landscaping, and cleaned-up exteriors can go a long way in improving first impressions.
⸻
• For Buyers:
A) Property Damage Inspection
• After a storm, damage to properties can be substantial. Buyers should make it a priority to schedule a thorough home inspection that covers storm-related issues. Common issues to look for include:
• Roof Damage: Check for leaks, missing shingles, or any structural damage caused by high winds or fallen trees.
• Water Damage: Look for signs of flooding or leaks, particularly in basements and lower floors. Ensure that drainage systems are intact and functioning.
• Foundation Issues: High winds and heavy precipitation can cause settling or shifting of foundations. Cracks or uneven floors are red flags.
• Exterior Damage: Check for fallen trees, damaged fences, broken windows, and other external property damage that might not be visible initially.
B) Safety Concerns in the Area
• After a storm, it’s important to assess whether the neighborhood is safe. This includes checking if there are:
• Flood Risks: Some areas are prone to flooding after heavy rainfall. Make sure to verify the flood zone status with FEMA and consider purchasing flood insurance if it’s a risk.
• Utility Availability: Ensure utilities like electricity, gas, water, and internet are restored, and check if there are any ongoing outages or maintenance work.
• Access Roads: Storms can block access to key roads or create hazards. Be sure that roads to and from the property are accessible and safe.
C) Insurance Considerations
• Homeowners Insurance: Before purchasing a home, buyers should confirm the home’s insurance status. Some areas might have higher premiums post-storm due to an increase in claims or storm-prone locations.
• Flood Insurance: If the property is in a flood zone, obtaining flood insurance is crucial. Advise buyers to check with their insurer about the specifics of the property’s flood insurance requirements.
⸻
2. Insurance & Financing Considerations: Navigating Post-Storm Challenges
• For Sellers:
A) Understanding Buyers’ Financing Limitations
• If your home was affected by the storm, buyers may experience delays in securing financing, particularly if there are pending repairs or unresolved insurance claims. Be prepared for potential delays in closing and be proactive in providing repair estimates or other needed documentation.
B) The Importance of Clean, Insurable Property
• For sellers, ensuring the home is in good shape and insurable is key to attracting offers. If major storm damage occurred, it might be worth considering offering a price reduction or making repairs so that buyers feel confident moving forward with their financing.
• For Buyers:
A) Homeowners Insurance
• Post-storm, buyers should be aware that some homes may have a higher-than-usual premium due to the storm’s impact. It’s crucial to speak with insurance providers about coverage for potential storm damage and review policies carefully.
• Pre-Existing Claims: Buyers should ask the seller for a history of any insurance claims made on the home. Storm damage or previous claims could affect the buyer’s ability to get insurance or impact the price.
B) Financing Options
• Some lenders may have stricter requirements in storm-impacted areas, including higher down payments or stricter property appraisals. Buyers should consult with lenders early to ensure they’re pre-approved and understand any post-storm requirements.
• Government Assistance Programs: In some cases, buyers may be eligible for government assistance or disaster relief programs if the storm gets declared a federal disaster. Research available resources to make sure the home is eligible for these programs.
⸻
3. Market Shifts Post-Storm: Understanding Changes in Buyer & Seller Dynamics
• For Sellers:
A) Navigating Market Shifts
• Storms can lead to temporary market slowdowns. Buyers may be hesitant, and some sellers may rush to lower their prices. However, if your home is in good condition and you can provide documentation of repairs or improvements, you may be able to stand out even in a slower market.
• Time is Key: Sellers may face a delay in getting offers immediately following a storm, but as the market stabilizes, there could be an uptick in interest. Be prepared to wait a bit longer for offers.
• For Buyers:
A) Potential Buyer Opportunities
• After a storm, home prices may temporarily dip as sellers adjust for damage or repairs, which could present an opportunity to negotiate a better deal. Buyers should:
• Be Ready to Act: Inventory may be lower post-storm, but some buyers may be cautious due to storm concerns. This can mean less competition and potential savings.
• Look for Hidden Gems: Some homes may have damage that’s easy to fix or might not be visible at first glance. A great deal could be hidden under cosmetic damage.
B) Negotiating Power
• If the property has visible damage or issues from the storm, buyers may have negotiating power. This could mean getting a better deal or negotiating credits for repairs.
⸻
4. Moving Forward with Confidence: Tips for Buyers & Sellers to Thrive After the Storm
• For Sellers:
A) Highlight Your Home’s Strengths
• In your listing, emphasize any upgrades made post-storm. Highlight features that make your home resilient to future storms, such as:
• Storm-proof roofs
• Basement waterproofing
• Generator hookups
• New landscaping that prevents erosion or flooding
B) Stay Flexible & Patient
• Be prepared for slower sales post-storm, and remain flexible with your pricing and offer negotiations. Storm-impacted areas can take time to recover, but homes that are well-repaired and marketed properly will find their buyers.
• For Buyers:
A) Partner with an Experienced Agent
• Working with a knowledgeable real estate agent who understands the local market and post-storm conditions is crucial. Your agent can help you navigate potential pitfalls, advise on fair pricing, and ensure you don’t overlook any storm-related issues.
B) Be Prepared for Long-Term Value
• While the market may have its ups and downs immediately after a storm, a smart investment in Northern Michigan real estate can still offer long-term value. Look for homes with sturdy structures, updated systems, and storm-resistant features that will retain value.
⸻
If you’re looking to buy or sell in the aftermath of a storm, let’s talk about how we can navigate these challenges together. I’m here to help you make informed decisions and ensure that your next real estate move is the right one!
