Why Is My Repaired Sinkhole Home Valued Lower Than Other Homes?

Reblogger
Services for Real Estate Pros Insurance NPN # 13379201

Toni wrote an incredible post when it come to sinkhole home. I hear myself repeating this every day when it comes to repaired sinkhole. The documentation is soo important when insuring a repaired sinkhole home. without the proper documentation of repairs, it is difficult to insure

Original content by Toni Weidman

 

Why Is My Repaired Sinkhole Home Valued Lower Than Other Homes?


I was on a listing appointment last week where everything was going along nicely and I had explained the CMA and pricing the home. Everyone was happy, then the seller said, “By the way, we had a sinkhole about 4 years ago but it was repaired. We have all the documentation so that shouldn’t make any difference to the price, right”.  brick wall

My visualization at that point, and it happens often, is tall, brick wall dead ahead.

When I told them that this made a big difference in pricing the home; they were shocked.  “The engineers told us it would have the same value as a non-sinkhole home”  (well, they wanted the job, didn’t they?).

A repaired sinkhole home loses about 25% value more or less, and must be priced accordingly.  Most homeowners are shocked until I ask them if they would go out and buy a home that is stigmatized by the word “sinkhole” in any way. Most bluster and say well sure if it had the paperwork, but they are only covering. They wouldn’t; and this is why:

  • It is very difficult to get insurance for a repaired sinkhole home and most premiums are high because of that difficulty.
  • The resale value is lower when it comes time to sell again.
  • All the documentation must be available. All, including the engineer’s report,   proposal for repairs, and final acceptance by the insurance company which must be recorded. And a copy of the payout to the repair firm.
  • All permits must be recorded (the engineering firm is responsible but the owner should check those out in county records).
  • It can be a hassle to get a loan for a repaired sinkhole home.
  • There's just something that makes people feel uncomfortable; every pop or squeak would have them running for cover.


SinkholeWhile many people rationalize that a repaired sinkhole home is safer than one where a sinkhole hasn’t been discovered yet “because it can’t happen again”,  that’s not always  true. It has been known to happen again at the same property; not often but it can happen so that’s a statement I will never make.

The sellers were very disappointed and may not have believed me but I think they should know the facts about their repaired sinkhole home. It simply does not have the same value as a home in which the word sinkhole has never come up.



Recent Posts
Autos for Autism 2013- March 9
Flower Power of a Different Kind
Golf Scramble & Dinner for the Pregnancy Center
Gulf Harbors Yacht Club, New Port Richey
Laughter Makes Instant Friends
Why Is My Repaired Sinkhole Home Valued Lower Than Other Homes?

 Google+ icon

Join My Circle On Google+

       Looking for a great agent? Let me help you find one.

Subscribe to my blog

Thinking of Selling Your Home in Trinity-New Port Richey to Hudson?
Craig and I have been selling in this area for 21 years.
Call Me or email my assistant, Shayna.
 
Toni Weidman-New Port Richey FL Shayna Weidman
Toni Weidman
  Broker-associate
ReMax New Dimensions
Trinity, FL 34655
727-237-0083
Websites
 

                            
Please Spay/Neuter Your Pets
  Re/Max New Dimensions Toni Weidman 727-237-0083Toni Weidman Homes for Sale on FacebookToni Weidman on Twitter Toni Weidman YouTubeToni Weidman Linked In ProfileWest Pasco Chamber of Commerce

©The photos/videos in my posts are my copyright (unless otherwise noted) and may not be reproduced, used or transmitted without the express, written permission of Toni Weidman of Re/Max New Dimensions.

 
Posted by

 

Comments (4)

Toni Weidman
Sailwinds Realty - Trinity, FL
20+ Years Selling Homes in New Port Richey, FL

Thanks for the reblog, Frank. Have a great Friday.

Mar 01, 2013 12:21 AM
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

Great reblog......if there is one thing I stay away from, it is repaired sinkhole homes.

Mar 01, 2013 07:51 AM
Diana Zaccaro
Tropical Beachside brokered by eXp - Cocoa Beach, FL
"The Accidental Blogger" Cocoa Beach, Florida

I managed to miss Toni's original post so thanks for reblogging this. Sinkholes are something we don't see much here so it was interesting reading for me.

 

Mar 01, 2013 12:54 PM
Frank Laisch
Orlando, FL
"The Insurance Guy"

Thanks Toni, there was huge sinkhole that opened up in Tampa, very sad

Barbara-Jo, Thanks Toni made some great points on the resale of Sinkhole repaired home 

Diana, yes, it is interesting , sinkholes have been popping up all over Florida  

Mar 01, 2013 08:06 PM