Is a new build listing price negotiable if it’s in a 100 year flood plain?

Hi Peter,

Glenda is right...I'm glad you researched it.

It may be that some lots in the development are in the 500-year flood and some are in the 100-year floodplain. I don't know if that is the case in this community but I've run across that situation before.

They may make a concession because of the increased cost of insurance but it just depends on the seller. I would talk to your insurance agent and get an idea of what the actual cost difference would be and make a reasonable offer based on that information. Since you mentioned that it was built up 3 feet, the insurance cost difference may not be as high as you think.

I would not count on getting a huge reduction based on this one factor. Some of it just depends on how much negotiating room the builder has built into his list price. I've worked with builders that have 5% or even more built into their list price and I've worked with builders that have absolutely no negotiating room whatsoever and will not negotiate at all. You mentioned that the homes are selling in the community so the builder is probably not going to be motivated to drastically slash the prices at this time. If the builder has a good product and people are buying it, it just wouldn't make sense.

If you like the home, find out the increased insurance cost and make them an offer....Best of luck!

Peter,
Kudos to you for doing your research. Definitely shop for insurance and disclose the elevation of any house you choose. It is not unusual for flood zones to change, even in an existing neighborhood. It’s good to know best and worst case scenarios no matter what the current situation is. A Realtor familiar with your area can definitely help you negotiate the price.

Definitely it is a negotiating point. However discussing with the builder about all the data he used to label it as a 500 vs 100 yr ,followed by your analytical approach to conclude . Peter you will be the best judge on your opinions! Go fo it !!

Hey Peter,
As previously stated, absolutely everything is negotiable in real estate. I also agree, that not being involved in the transaction or knowing the details it would be really difficult to determine how much if any to ask for. With that being said, the decision to walk away or proceed really depends on your comfort. Talk top your insurance provided and get these details first. Knock on a few doors of homes that were built before Harvey and see if they can tell you how the subdivision fared through the storm, with new construction it could be really easy to say the home hasn't been flooded, especially if it wasn't built at the time. But bottom line, is make an offer of your comfort and if you are not ok being in an elevated flood map, probably best to keep looking as there are plenty of homes that are not. Keep in mind, flood maps can change over time for better or worse.

Good Morning Peter,

Everything in Real Estate is negotiable. I cannot comment on builder’s mistake of advertising 500-year flood plain instead of 100- but I am glad you double checked and covered your basis. I’d recommend you also check with your insurance company on the insurance cost. It may differ between the 500 and 100-year floodplains. Is the builder willing to cover part of your insurance cost?

I understand the builder elevated homes to keep them above the floodplain. Are there any other measures the developer has taken to ensure flood prevention?

I know it’s not much, but I hope it helps a bit. Without being involved in a transaction and knowing all the details (including builder and location), it’s difficult to provide you with sound and solid advice. It’s always better to involve a Realtor in a purchase of new construction from the start.

Thank you,
Yvonne Chauvin- REALTOR®
Master Certified Negotiations Expert
Better Homes & Gardens Real Estate Gary Greene
YvonneChauvin@yvonnechauvin.com
Cell: 281-686-0143