With floods impacting many homes and areas around Australia, some homeowners may be wondering if the floods will have an impact upon the value of their homes, especially if the home has been directly impacted by rising floodwaters or is in a flood-prone area. It’s understandable to be worried about how flooding can impact your home and its value. Take a look here to see what the impacts of floods on property values are and what to do if you have been impacted.
Factors That Can Determine the Impact of a Flood
Natural disasters such as floods have been increasing in frequency in recent decades, so it’s natural to wonder how a flood might impact your property value as it is a very real concern for many households in Australia these days. There are a variety of factors that can determine just how much of an impact a flood can have on your home’s value. These include:
- The extent of the damage: The more extensive the damage to your property from floods, the bigger the impact is going to have on your home’s value. While much damage is repairable, especially if tended to swiftly, you will often find that historical damage that is leftover from previous floods is going to negatively impact your home value. The more damage your home has sustained, the more the value is going to be negatively impacted.
- How often it occurs: If your home floods on a semi-regular basis it’s likely that your home value is going to decrease. Regular floods, especially when they directly impact your home or they impact the entire surrounding area will not only damage your home, but they have the capacity to disrupt the community and supply chains. This makes the area less desirable with lower demand again impacting your home’s value.
- Demand for the location: Depending on how in-demand your area is, will determine how much of an impact a flood could have on your home’s value. In many areas, locals are somewhat used to flooding – they’re aware of the risks but they choose to live there anyway. This is especially true for areas that are in high demand such as near waterways, beaches or rivers. You may initially see a decline in house pricing, especially while the floods are fresh in everyone’s minds. However, once properties are repaired and all evidence of the latest flood is gone your home’s value will more than likely rise again. In demand, markets are likely to experience less of a fall out than other areas of markets that are less in demand.
What’s to Do if Your Home Has Been Impacted by a Flood
If your home has been impacted by flooding, the first thing you need to do is get a qualified professional to look at the structural impact the flood may have had on your home, once it is safe to do so. If your home is still structurally sound and the flood damage is only aesthetic, your home’s value shouldn’t be impacted too much, especially once you have cleaned up and repaired the minor damage.
Begin cleaning up after the water has gone. You’re going to want to start drying out your home and cleaning as soon as you can to ensure that mould or rot doesn’t have a chance to take hold. Be sure to document damage as you go to ensure that you have a photographic record of all damage to your home and belongings for insurance purposes.
Have You Been Impacted by Floods?
If your home has recently been impacted by floods it’s understandable to not know what the long term effects are going to be on your home’s value. If you need assistance with property valuation after a flood or other natural disaster, we can assist. Get in touch with us today and one of our experts will be able to assist you with your enquiry.