Do you know if your home is in a Flood Plain? This is starting to become an issue and it can either delay or destroy a closing. Bruce and I have had 2 instances lately on house deals found to be in the flood plain. The first one was a small little acreage home in Eustace Texas. You wouldn’t think an acreage property would be in a flood plain. The house was close to the road. On the very back portion of the property, there was a creek. We didn’t think anything about it until the survey was done and it showed a portion of the property in a flood plain. There were several options for our buyer
- to close on time, purchase Flood Insurance and then wait for the Letter of Map Amendment (LOMA) to come in from FEMA and hope that they would determine that the property was not in the flood plain.
- Delay closing, have the surveyor fill out the Letter of Map Amendment (LOMA), wait on FEMA (which takes time) and hope that they would determine the property was not in the flood plain.
- Terminate the deal and begin the property search again.
Our buyer decided on option 2. The surveyor filled out the LOMA and we began the long wait for FEMA to get back to us. After a long wait, it was determined that the property was not in the flood plain, and now we have a very happy buyer.
Sellers really need to remember what the goal is – to sell the house. Consider having a surveyor out to make sure the property is not in the flood plain. If it is, then get that LOMA filled out and turned in right away. The last thing you want is to almost be ready to close and then find out that you have a flood plain issue.
Our second most recent experience with this, the buyer went ahead and purchased flood insurance and hopefully they will be able to cancel the coverage when their LOMA comes in showing that the property is not in the flood plain.
If you want to read more information about FEMA and flood plains, the latest edition of the Texas Realtor Magazine has a great article about it. June 2017_selected-pages I will definitely start checking the Flood Insurance Rate Map (FIRM) on properties before listing them.
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| Debbie and Bruce Schwanbeck, Realtors at Ebby Halliday Realtors DebbieS@ebby.com BruceS@ebby.com 469.249.2034 |