Selling a house in a flood can feel like a difficult battle, but that’s not impossible. Whether you are trying to sell a water-covered house in New Orleans or a Phoenix condo, buyers may still be interested if the issue is being handled the right way
So, can you sell a flooded house? Yes, you can absolutely do it. You have to do it the right way. This is a basic playbook for selling flood-related homes, from your first IV drip to your final signature.
1. Get a professional examination
You can’t sell your home in a flood, pretending to be an attractive fixer upper. A puddle in the crawl space? It’s not “naive.” That’s a responsibility. So, step 1 is to call a professional. Reach out to a flood inspector or repair expert and dive into the details of the issue.
This isn’t just about knowing what’s broken. It’s about arming yourself for the next few days. Without hard data, you are a sitting duck for lowball offers or litigation from buyers who have discovered an issue you “forgotten” to mention.
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2. Decide whether to repair or sell
You have two passes, but none of them are completely paved with gold.
Damage Repair: Pay to fully repair flood damage and the underlying issues associated with it. There’s a shot to get some, even more costs at a higher selling price. Sell AS-IS: Sell investors or target investors or cash buyers who don’t mess with some major repair ideas after closing. This could be faster in some scenarios, but it could also hit the selling price.
Your choice depends on your bank account, your patience, and the local market. If the flipper is circling the neighborhood like a vulture, AS-IS sales may be your ticket. If it’s the seller’s market, repairs can improve your profits. Get contractor quotes and check out other water damaged sales comps.
3. Disclose all floods honestly
In most states, you will basically need to fill out a disclosure form that confesses the drawbacks of your home. Flood? Type? Past floods? You have to be honest about it. If not, you are opening yourself to a lawsuit that could cost more than the home itself.
4. Work with experienced agents
The Redfin agent can act as a guide and contact. If possible, find an agent who previously sold a water-damaged home. They perform comparative market analysis (CMA) to price your location from other similar homes and process your documents.
5. Price your home appropriately
Realistically, you won’t get the best dollars for a water damaged home. That being said, you need to price it realistically. A similar home in the neighborhood is on sale for $450,000 and if your basement has been having a recent water issue, it makes sense to lower the asking price a bit. Fair and well-researched prices help attract the right buyers and avoid pulled negotiations and food stall sales.
6. Be creative with marketing
Your list should in some way scream “opportunities” without any dishonest or misleading. Hire photographers who can pop an undamaged room but don’t airbrush the reality of the situation.
7. Be prepared for your questions
The buyer will probably send an inspector to check your home. Expect them to find all the flaws you revealed, and even what you didn’t. Share your inspection reports in advance, set expectations and show transparency. If you are selling your home, make it clear from the start, but be prepared to ask for credit or leave if the buyer feels the damage is overwhelming.
Traditional buyers with FHA or VA loans may release bail if the damages are not residing in the home on the lender’s standards. A cash buyer or a traditional loan may be your best bet.
Yes, you can sell your home due to flood damage
Selling your home in a flood will not take a walk in the park. To be honest, target buyers who can get the price and see the dollar sign in disaster. Whether you repair your home or sell it, the key is momentum. Get Redfin Agent, create a plan and sell your home the right way.
Selling a house in a flood: FAQ
Can I sell a flooded house without repairing it?
Yes, you can sell a house that has been watered down to As-and, but it is important to disclose all known issues. You may need to lower prices and target investors and cash buyers who are used to repairs.
Does insurance cover the cost of water damage before I sell?
It depends on the cause of the damage and your policy. Insurance may cover sudden or accidental damage (such as burst pipes), but there are no long-term leaks or poorly maintained gradual issues.
If that is fixed, should we disclose past flood damage?
In most states, yes. Even if the issue is resolved, sellers are usually necessary to disclose known history of floods, floods, or mold.
Can floods reduce the value of my home?
yes. The appraiser takes into account the condition of the home and visible or documented flooding can affect the final assessment. Especially if it affects structural components or leads to mold.
Who buys a house due to flood?
Typical buyers include real estate investors, house flippers, and cash buyers who are willing to take repairs. Traditional buyers using FHA or VA loans may not qualify if their home does not meet the livability criteria.
