Thirty-seven percent of homeowners have lost their homes due to water damage and 98% of underground houses experience water problems at some point.
According to Murphy’s Law, you can also raise a pipe or flood at the right time for what you decide to do
“I had a problem when a crawlspace inspector found that the water line behind the refrigerator was leaking – maybe for months,” recalls real estate agent Christy Friesen about some of the water damage issues for her buyers. “Some of the pillars and floorboards had to be redone.”
Selling a water-damaged house is a daunting proposition but you can prevent the worst-case scenario with proper protection available and lead by tourism experts. We’ll help you avoid problems like overpayment or overcharging, so everything you need to know about:
- The most common causes of water damage to a building.
- Water damage insurance and how to ensure your home is covered.
- Your options for making the necessary repairs or reducing the price of your water-damaged home.
- Procedures for disclosing known water sources in a building.
What are the Most Common Sources of Water Damage in the House?
Water damage can occur in a variety of ways and is one of the biggest problems with home inspectors watching. Expect to be deducted from your home inspection report if you have safety issues involving water damage, such as black mold growth. Many home inspections also raise old pipes, which can lead to water damage.
Here are a few pipe tips to look out for before your inspector does:
- Rusty pipes
- Old water heaters
- Leaking toilets
- Sanitation problems
- Backlogs and connectivity issues
Other common sources of water damage include:
1. Flat Roof
According to Florida- and North Carolina-based Secure Restoration, a five-star water repair company that has been operating for more than a decade, a flat roof can cause a lot of problems if it is lined with debris, the weight that floats on the roof and causes water to clear up.
The roof can meet snow dams during the winter weather when the mud overflows with water that catches water. In any case, you get water damage and mildew that may occur on your hands in the form of cracks in the roof and leaks in the roof.
2. Prevention Strategy
To prevent water damage from the flat roof, fix low-lying areas that cause water to collect and drain.
Also, open or close existing drainage ditches, and at the same time consider re-installing the roof – but make sure this is done by a licensed contractor.
3. Leaking Pipes
It’s hard to see and it’s a fraud to diagnose, this is very bad news if you want to sell your home.
Many things can lead to pipe leaks, including a poor pH balance of your water, which can lead to copper leakage. Pipes can also be cold or rusty.
4. Prevention Strategy
Check your taps to see if this – low water pressure or brightly colored water are both signs of a problem.
Spots and watermarks on your roof also point to leaking pipes. Piercings, peeling paint on your walls, stains, and marks on your roof, or cracks and hot spots on the floor are signs of excess moisture and leaks from your pipes.
If you see signs of any of the above, contact a plumber.
5. Dirty Gutters
Waste prevention can cause water to overflow and flow to the side of your home, which is not what you want because it can lead to damage or discoloration, landscaping, waterlogged basements, or changing foundations.
6. Prevention Strategy
Check your paint for the watermarks – that’s the suggestion right there.
Make sure you find the problem area and take any necessary steps to stop the damage. This could mean turning off the water in your home or installing stagnant water. Then call a professional.
Water Damage and Insurance: A Business That Makes Billions
Luckily for Friesen’s client who was working on the surprise of the water supply during the sale of his home, he had adequate and ready insurance.
“I said, listen, you have to call your insurance – that’s going to be an expensive fix,” Friesen said. “Some of the pillars and floorboards had to be redone. The key is finding the right insurance policy. ”
Claims of water damage are where most homeowners apply for insurance. Insurance companies pay $ 2.5 billion annually in water loss losses. 14,000 homeowners face water damage every day, while almost every basement experiences water damage at one time or another.
The water damage claim is worth only $ 7,000. Water damage and freezing account for approximately 30% of homeowners who lost their insurance in 2016.
The types of insurance covered by insurance often include sudden or accidental discharge, flooding, and sewage or water storage. Slow injuries can also be included, but they should not be a problem that is deliberately ignored.
An Insurance Company notes that two types of reporting within the general homeowner’s policy can apply in this case: residential coverage and personal property insertion.
A certain amount depends on your policy, but a renowned homeowner insurance company estimates that most reach $ 5,000 for mold remodeling, although the range is between $ 1,000 and $ 10,000.
Claims Mate, a nationally trusted provider of claims insurance from start to finish, offers the following tips for filing claims against homeowners facing water damage:
- Notify your insurance company immediately
- Protect the property to prevent further damage: remove standing water and dry area affected
- Take pictures and make a list of damaged items
- Find temporary housing if necessary
What are the Consequences of Water Damage? Should You Consider Adjusting?
Bart Tipton, a major retailer in Bakersfield, California real estate agent who has set up 771 transactions so far, notes that water damage is one of the most difficult problems to produce during a home sale:
“They can lower the 3-meter sheetrock to the walls, and remove all the installation,” Tipton said. “It’s expensive. … Most often insurance will pay for you, but it is very disruptive. ”
The Water Page, a comprehensive site that combines water-related education, development, news coverage, and more, lists several effects of water damage on the home. These include:
- Damage wood furniture, furniture, plumbing, electrical appliances, and building materials.
- It increases the risk of mold growth.
- Health problems caused by mold and dirt.
According to experts, the correction is not if but a-and soon it gets better.
“I’ve had people who leak under the bathtub or something like that, get it during the test, and get tested for the mold just to make sure there is no mold,” Tipton said. “And in that case, what I had before, there was a mold repair company that would come out and do it. It’s expensive (4 thousand to 7 thousand) but you don’t have many choices. ”
According to HomeAdvisor, a digital market that provides real estate services since 1998, the national water damage rate is $ 2,587. The standard range is priced at $ 1,080 to $ 4,098, with $ 450 in the low end and $ 8,000 in the high end.
Whichever way you cut it, it will cost.
Do you Need to Disclose the Structural History of Water Damage to Customers?
When in doubt, disclose. Such is the case with the consensus of experts who say that it is not just the right behavior to disclose, it is wise.
Disclosure, a major part of any real estate transaction, record any known issues with the property. While this varies from situation to situation, known water damage conditions are one of the most common things you should disclose.
“Certainly, that’s one of the big points – any water damage or water intrusion,” Tipton said. “That is one of the biggest questions they have to answer in a referral disclosure statement.“
Nolo Press legal editor Ilona Bray notes that legal remedies can be followed for a retailer who fails to disclose the key — including past water damage. Bray writes that three organizations can find themselves under a bad gun:
- The seller’s real estate agent
- The buyer’s inspector
In Huntsville, Alabama-based housing lawyer Mac Martinson echoed Bray’s remarks. “The seller would be liable if they knew of the damage,” he told Avvo Stories, “because this is a matter of health and safety and the seller did not fix the problem.”
What are the Major Challenges to Selling a Water-Damaged House?
Phoenix, an Arizona-based Rocky Mountain Restoration, a member of the Better Business Bureau – accredited Industrial Industry, lists many difficulties in selling a home with water damage:
Buyers are aware that it may take some time to recover the damage to the property and they may knock the money off.
“Customers certainly express concern about it,” remarked Tipton, although he did not give a specific price for the normal price that water damage would take away from the agreement. It would depend on the severity of the problem and the factors affecting the situation.
Restoration Master Finder, a comprehensive website that assists consumers in finding service providers across the country, advises consumers to reduce the cost of water damage and repair supply.
2. Electrical and health concerns
Not only is damage likely to affect the home’s electricity system – which could pose a safety risk – but floods and fungi that are emerging could cause health problems for residents.
3. Future injuries
Once water damage has occurred, it is also possible if you live in a flooded area or the problem is not fixed properly.
Buyers know this too. Customers will continue to be very cautious when they know that water damage is a problem. This reduces your chances of finding the asking price you want.
That said, some buyers will look for a house with water damage; as Tipton notes, during his representation, the damage has been done and repaired. “They understand that once it’s fixed, it’s much easier (to deal with).” This means, once the damage is done, hopefully, the buyers won’t have any more problems with it.
Should You Sell your Dilapidated House to an Investor “as is”?
Depending on the severity of your water damage, you may want to consider selling your home “as it is” to an investor.
This can be an attractive option in a few situations. Say, if you get down on your knees in the renovation talks and find yourself in a grid with your home buyers, or you can keep any offer on the table after all the disclosures to be made.
What’s the catch? Of course, the price you are given will probably be less than what your home can get in the open market if you can fix the essentials and put your best foot forward in pricing.
However, the direct market is very diverse and has a greater opportunity than ever before. Find out what a money buyer can donate to your water-damaged home today.
“If someone is trying to get rid of a home, and they are an investor, as long as they are going to disclose (which needs to be disclosed), that’s great for consumers,” Tipton said. “The special will go undervalue. But you do not have to worry about the appraisal. There is no danger to traders if they disclose everything and are honest beforehand. ”
What do senior lawyers suggest when selling a water-damaged house?
Friesen reiterated his belief in the power of appropriate insurance. “Insurance is very important – something big, big. I don’t want a surprise out of the pocket that is seven thousand. ”
For his part, Tipton noted that if the test results in water damage, it should be investigated immediately. “If there is, you have to address it in some way,” he said. “As long as you know there’s a leak, it’s like it’s getting to where it is now.”
Tips to Consider When Selling a Water-Damaged Home
Investors, the Bayside, NY-based real estate-based real estate investment network, has a few words of wisdom when it comes to selling a water-damaged home, and here are the highlights:
1. Don’t Hide Water Damage History
First and foremost, do not hide current water damage or water damage history.
Some retailers have tried to cover up the damage with available solutions such as drywall and spray foam, leading to legal battles. Don’t let this happen to you! If you know, expose it.
2. Research Mold Repair Options
You can take this on your own or let the buyer handle it, but remember that if you choose the latest, you will probably get a lower purchase offer. Also, if you choose to offer a repair loan, you will end up bringing more money to the table than the actual cost of repairing the problem.
3. Repair Damaged Areas
Start by calling your insurance company and removing all items damaged by the incident such as mattresses, rugs, furniture, etc. While wood flooring can be saved, drywall is usually a complete matter. Cement roofs usually survive mold better than sheet metal; it is recommended that you replace it with the latest version.
4. Find Any Corrections in Writing
Your sales agreement should clearly state the steps you have taken to reduce home water damage. Keep any receipts and documents related to contracting work, repair services, or warranties as you will need to present them at the time of acting as proof of completed work.
To Wrap Up: Don’t Let the Water Problem Sink the Agreement
If you are trying to sell a water-damaged house on the market, you may need professional help and advice. This is where the knowledgeable, trained real estate agent comes in.
Agents come with a contact list that includes all types of experts you will need to deal with, from inspectors to repair firms and more.