We buy unrepaired sinkhole homes in Florida.
Time is money.
What Is The Value of a Florida Sinkhole House Prior to Repairs?
Unfortunately your home has suffered from severe damage caused by a sinkhole. This problem is occurring far more frequently due to the severe conditions that occur underground in many areas of Florida. Often times the best solution is to sell the property to a company that specializes in purchasing sinkhole houses in the Florida market. By doing so you will be able to recover the most amount of money, enabling you to literally and figuratively move on with your life.
We pays top dollar for sinkhole houses in Florida. Contact us today for a no obligation; custom quote on the maximum amount we can pay you for your property. We have also provided you with an easy to use guideline regarding the value of your “as is” sinkhole home. Please note that “as is” value refers to the current market value prior to making any repairs.
Please follow these steps in order to calculate an approximate value of your un-repaired sinkhole house.
Sinkhole value - Step One
Begin with the current market value of your property as if the sinkhole did not occur. There are many websites that will give you a market value based on recent sales within your area. All you need to do is type in your address and you will be provided with data from similar sized, and style houses that have sold recently. There are many websites that do this for free; www.Zillow.com is a good source to start off with.
Sinkhole value - Step Two
Use the market value figure from Step One and subtract five to ten percent due to stigmatization.
Please note that stigmatization means that there will always be a perceived assumption that there is something wrong with the property even when it is properly repaired. This fact will cause some potential buyers to steer away from the property, while others will only be willing to purchase it for less money than it is currently worth.
For example, your house is worth $100,000 minus $10,000 (ten percent of the market value) = $90,000.
Sinkhole value - Step Three
The next step is to use the figure in Step Two, and subtract the cost to repair both the house itself, and the sinkhole under the property. For an approximate figure you can use the amount that your insurance company has either paid you, or has calculated based on the engineering report and home repair estimates.
For example, $90,000 minus $50,000 ($25,000 home repair costs, and $25,000 sinkhole repair costs) = $40,000.
Your property’s value is greatly affected by the costs to repair the house and fix the sinkhole itself. In some cases the market value before repairs is actually negative. If this has happened to you, we may be able to help. There are other ways to figure out if your property has some value
Some companies calculate the damage and repair costs as twenty-five percent of the pre-sinkhole value of the property. This is certainly not a good method to use. The damage and repair costs could be much higher or lower than twenty-five percent.
Although the steps above will give you a good idea of your sinkhole house’s value prior to repairs, the exact accurate figures are another story. It is a complicated process that should only be conducted by a professional company such as us. The principal owner, Chris Langee worked for many years as a state certified appraiser and Real Estate Broker. Based on his knowledge, we are able to offer you the best price possible for your sinkhole home in Florida.
Three Methods To Determine The Market Value Of A House
1: Sales Comparison Approach
The most commonly used and accepted approach to determining value in real estate is the sales comparison approach. This approach to value bases its opinion of value on what similar properties, which is otherwise known as “comparables”, or “comps”, in the vicinity have sold for recently. These properties are adjusted for time, acreage, size, amenities, etc. as compared to the property that is being appraised. Understanding which and to what extent adjustments are reasonable for a given market area, for a given property, relies on the experience of an experienced professional. A property characteristic that is highly valued in one neighborhood may not be valued to the same degree in a different area.
2: The Cost Approach
The second approach to determining the value of a property is the cost approach. This approach seeks to determine how much a property would cost to replace, meaning to rebuild it, after subtracting accrued depreciation. Accrued depreciation is the reduction in actual value of property over a period of time as a result of wear and tear or obsolescence. The term reproduction cost is used if an exact replica of the original property is produced. The term replacement cost is used if a property is rebuilt with comparable utility, but using current design and construction methods and materials. The cost approach is considered to be more reliable when used on newer construction. The methods and results of the cost approach are considered to be less reliable with older construction.
The cost approach appraisal is frequently the only approach that is considered to be reliable when appraising special use properties such as commercial/industrial properties or public properties such as libraries, schools or churches, which are not traded on the open market.
3: The Income Approach
The third approach to value is called the income approach. When a property generates income for its owner, that income, or potential for income, helps to substantiate, calculate or identify the market value of the property. Apartment buildings and duplexes are examples of income-producing properties. Professionals use the income derived from the property as part of the assessment the market value of the property.
I am more than happy to have a more in depth discussion with you regarding which valuation method will benefit you the most. Sinkhole home sellers certainly have unique situations that require the expertise and experience of a professional company that cares about your best interests. Sinkholes are a far too common problem in Florida. We are here to guide you through the process every single step of the way. Please contact us today and we will work hard in order to help facilitate the sale of your home.
We fully understand that sinkholes can be extremely dangerous, and that owners of properties with sinkholes are in a stressful, emotional, and precarious situation. We want you to know that there is a solution to your problem. In fact, many sellers actually come out ahead of the game. You can actually get out of your house with enough money to purchase another home. This is often the best way to make the best out of a bad situation. If a sinkhole is not properly repaired there is a good change that it will re-surface. This leaves you facing the problem, and re-living the nightmare all over again, and it can strike at any time. Why take that chance.
Helping homeowners, by purchasing their sinkhole properties, is not onlyour area of expertise it is our passion. We pride ourselves on the fact that our company provides sinkhole homeowners with an extremely easy way out of what seems like a next to impossible situation. In addition, it is also tremendously satisfying to repair homes that, under many circumstances, may have gone un-repaired. By fixing those properties to their former glory it not only helps the neighborhood, but the entire community as a whole. Surrounding neighbors will no longer have to live close to an eyesore, the danger to children and adults is eliminated, and the property values are restored to the area.
We look forward to helping you, please contact us today for a no obligation analysis of your sinkhole property.
What is my unrepaired sinkhole house worth in Florida? Sinkhole Effects on Market Value of the Home
The value of the house will be affected greatly by the cost to repair the sinkhole. I always look at what the insurance pay off amount is. The insurance company is not going to give the owner a penny more then they have to. Generally, You take the repaired market value subtract the cost to repair the house and you come up with the current value of the home. Some times the amount you come up with is negative. The property may still be worth something.
Many neighborhoods that experience sinkholes are faces with a decrease in the value of their home. Sinkhole homes fair market value decreases in value by 5 to 10 percent when compared with non sinkhole homes. Homes are already valued at a lower market price than they were even a year ago due to the economy, so the further decrease in value can be very discouraging to home owners.
Call me and we can discuss the particulars.