Following the horror story worthy “Frankenstorm,” some potential homebuyers had to seek additional assessments of the properties they were considering calling home before closing.
In areas that were declared to be in a state of emergency, lenders have the option of requesting re-inspection to protect their loans or asking for verification that the property isn’t in a disaster area or flood zone.
When the Federal Emergency Management Agency (FEMA) declares certain regions as disaster areas, lenders often demand a re-inspection by a qualified appraiser to evaluate damage done to the property in question. Some banks may cover the cost of re-inspection if they deem it necessary. Should damage be detected, homeowners must make repairs before they expect to sell their property. Local area contractors and inspectors should see a rise in their business in the weeks to come, as homes need to be checked for destruction and necessary repairs made.
Some real estate experts predict that Hurricane Sandy will have longer-term impacts on the market, with sellers taking their homes off the market due to damage incurred and buyers holding off on purchases after the disaster. Following major disasters like Katrina in New Orleans, real estate costs often plummet, as residents seek to move to new communities safe from harm.
But for east coast home sellers, things might not be so bleak: in four to six months from now, areas hit by Sandy can expect to see home prices rise, as insurance money comes in and the housing market elevates to levels higher than before the hurricane blew threw eastern states. Time will tell if these forecasts will come true regarding how the real estate market manages to weather the storm.
If you have questions, the Maryland real estate insurance experts at Colony Title Associates can be reached by calling 410-884-1160 or visit ColonyTitle.com today!