Selling a flood-damaged house in Hampton Roads: what to know first

You can sell a flood-damaged house in Hampton Roads without drying it out, pulling up the floors or fixing anything first. Before you do, find out three things: whether Virginia requires you to disclose the house's flood history, what your flood policy does when the house sells, and whether the city has called the damage substantial. Those answers decide who will buy the house and what they'll pay.

Flooding here comes from more than hurricanes. Tidal flooding, nor'easters and heavy summer storms put water in crawl spaces and first floors in Norfolk, Hampton and Chesapeake, sometimes more than once a year.

What does Virginia make you disclose about flooding?

Virginia is mostly a buyer-beware state, so sellers have fewer required disclosures than in many other states. Flooding is one of the exceptions. If you know the house is a repetitive risk loss property, you have to tell the buyer on a form from the Virginia Real Estate Board. That label means the National Flood Insurance Program paid two or more claims of more than $1,000 each within any 10-year period.

Even when that form doesn't apply, don't hide water damage. Covering up a known problem can still get a seller sued in Virginia. And a buyer will usually find it anyway, from the smell, a waterline on the wall or the state of the crawl space.

If you don't remember the claim history, ask the agent who handles your flood policy what has been paid on it.

Does my flood insurance go with the house?

It can. A flood policy through the National Flood Insurance Program can usually be assigned to the buyer at closing, so coverage carries over without a gap. You and your insurance agent have to complete the assignment on or before the closing date. Ask your agent whether that would help your buyer.

If the house ever received federal disaster aid for flood damage, the requirement to carry flood insurance stays with the address. The next owner has to keep a policy too, and a buyer will want to know that before closing.

If a flood claim is still open, ask the adjuster what has been paid and what is pending before you sign a contract. Payments for the building usually include your mortgage lender, so the loan payoff and the claim need to line up at closing.

What is the 50% rule in Norfolk, Hampton and Chesapeake?

Cities in the National Flood Insurance Program use the same basic test after a flood. They compare the cost of repairs with the value of the building before the damage. If repairs reach 50% or more, the house counts as substantially damaged and has to be brought up to current floodplain rules. In a flood zone that can mean raising the house.

Ask your city's floodplain office whether a determination has been made for your address. That answer affects the price more than almost anything else. A house that needs drywall and flooring is a repair job. A house that has to be raised is closer to a rebuild.

How does a buyer price a flooded house?

A buyer starts with what the house would sell for after repairs, then subtracts the work. After a flood, the work usually covers flooring and drywall up to the waterline, insulation, ductwork and HVAC equipment in the crawl space, the water heater and mold treatment. Wiring and outlets below the waterline get checked too.

Then the buyer weighs what the next owner takes on: the flood zone, the cost of flood insurance and how often the street floods. Two houses with the same damage can get different offers when one sits on a street that floods at every king tide.

When you compare offers, ask each buyer which repairs they priced in. A number with no explanation behind it is hard to trust.

How we buy flood-damaged houses in Hampton Roads

We buy houses in Norfolk, Hampton, Chesapeake and the rest of Hampton Roads as they are, wet crawl space included. You don't have to pull carpet, run fans or hire a remediation company before we look. There are no fees and no closing costs on our side.

Tell us when the water came in, how high it got and where your claim stands. If you've already moved out, tell us how to get inside, through a neighbor or a tenant, and we'll handle the walkthrough. Call or text (443) 806-8068.

Selling a flood-damaged house in Norfolk

How we buy houses in Hampton

How we buy houses in Chesapeake

What to check after a Norfolk code notice

Selling a Chesapeake house with a failed septic system