After the damage returned from hurricanes Helene and Milton, a wave of Florida homeowners sold their flood-damaged properties using words like “as is,” “cash only” and “to investors.”
The Tampa Bay market is reportedly seeing dozens of listings from homeowners desperate to get rid of their mortgaged homes.
“I just want to leave,” the owner of the St. Petersburg Ali Linville told ABC Action News. “I mean, once you’ve done it three times, it’s like, OK, I’ve had enough.”
Linville has decided it’s time to “cut his losses.” According to the report, he bought the house in 2021 for $575,000. The third flood is only two years old, and it has been stripped down to stud again. The home is currently listed for $425,000, reflecting the cost of flood repairs that still need to be completed.
“I can’t live in a flood zone where you have to keep going out for six or seven months,” he said.
Linville is not alone. Realtor Ross Fengfish represents several quarters of a mile that are also ready to sell. His client bought, renovated, and flipped the property before the hurricane. The house was on the market, and they saw interest – until the flood waters rose. The home was previously listed for $460,000. Now it has been gutted, and Fengfish has dropped the price to $299,990.
Fengfish hopes that residents will be able to sell and start over. He said investors called and were ready to buy the house.
“Many (houses) are delayed. I was really surprised to see,” he told ABC Action News. “… Maybe with the insurance money, they’re going to do something, like those people, you know, they can go, maybe not get hurt, and go on with their lives. It’s possible.”
Chris Beardslee, another Shore Acres resident, also pulled up the stakes.
“Is this worth going through again? How will I feel next year, or two weeks later like this?” Beardlee told Fox 13. “It’s more important for peace of mind for the future to move together and sell the house for what we can get it.”
Hurricanes Helene and Milton left large swaths of the Tampa area flooded, with homes submerged in several feet of water. This is one of the region’s toughest hurricane seasons. Many homeowners face financial loss because standard homeowner’s insurance policies do not cover flood damage.
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However, Americans must take out separate flood insurance, and legally must get a mortgage in certain areas. Most flood insurance in the state is through FEMA’s National Flood Insurance Program (NFIP). According to a Washington Post analysis of NFIP data after Hurricane Helene, “In the seven affected states, only 0.8% of homes in inland counties affected by the storm had flood insurance. In contrast, 21% of homes in coastal counties in the region had coverage.
The report added that “experts say the flood maps used by the national program are out of date, leaving many areas with flood insurance without insurance.”
Several insurance companies have withdrawn from the Florida market due to the increased number of natural disasters. Farmers, Progressive, and AAA have all left the country or drastically reduced their exposure to the region by choosing not to renew their policies in high-risk areas.
For Florida homeowners, selling their home “as is” for cash represents a chance to move on and escape the cycle of damage, relocation, and repair, in addition to rising insurance costs.
Florida homeowners insurance rates are nearly four times the national average, CNN reported last year. As more insurance companies move out of Florida and insurance rates continue to rise, selling now for cash is a calculated decision for sellers.
When selling cash in “as is” condition can leave some money on the table, most of them walk away with insurance payments, which is likely to bridge some, if not all, of the financial gap. For many residents, like the residents of St. Petersburg Jody Hameroff, peace of mind outweighs the financial impact.
“… it (the storm) was very traumatic, and I don’t want to go through this again,” Hameroff told Fox 13. “We actually have a contract on a new house, we’re just not going to come back here.”
As investors continue to pursue these properties, they can shape Florida’s real estate landscape. If investor-owned properties increasingly dominate flood-prone areas, those areas may experience changes in property values ​​and community dynamics as fewer long-term residents choose to live in high-risk zones.
This article provides information only and should not be considered advice. This is provided without warranty of any kind.
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