IS BUYING IN A FLOOD ZONE a deal breaker?
You’ve searched and scoured the listings with your Realtor. You’ve looked at numerous homes in Asheville, fell in love with a couple, but were outbid! But it was all for the best – because you finally found it: the perfect mountain home in an idyllic setting next to a babbling brook. You tell your agent to write up the offer. Ten minutes later, the phone rings. That babbling brook is adorable, but it’s created a flood zone on the property.
It can be disturbing to realize that the beautiful home you’ve fallen in love with is in a flood zone. While it’s not necessarily a deal-breaker, there are some serious considerations to understand before moving forward. Flood zones are defined by the Federal Emergency Management Agency (FEMA) and are categorized according to the level of risk. A high-risk area is defined as having a 1+% chance of annual flooding, whereas a low-to-moderate location has a 0.2% or less chance of annual flooding. FEMA maintains a flood map center where you can research the classification of the location and the level of concern.
Flood insurance is available to homeowners in any location. It makes sense that homes located in high-risk areas will pay higher premiums than those in lower-risk zones. In addition to normal homeowner’s insurance, flood insurance can range from a few hundred a year to thousands per year. The good news is that proper flood insurance provides excellent coverage in the event of damage, even providing temporary housing if necessary. Coverages vary, so it’s important to discuss the options with your insurance agent.
There is no reason to dismiss a home simply because it’s located in a flood zone. Many beautiful locations are also considered high-risk. But before you write the offer, it’s important to consider all the implications and costs involved. We are happy to guide our clients through that process.
about Asheville Realty Group
Asheville Realty Group is a boutique brokerage firm offering full-service real estate services. We have locally experienced agents who specialize in residential homes, luxury homes, country-side acreage and everything in between. We love Asheville and the surrounding mountain communities that we call home!
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