Recent studies indicate rising waters affect real estate, and those properties appreciate at a slower rate. As water levels start to rise, the risk of flooding increases. It can also increase the risk of a tidal wave. Mother Nature can be unpredictable, and that means taking precautions against such damages is important.
There is no question that living close to water is thrilling! It is beautiful, it can smell amazing, and the view is hard to pass up. Being safe and secure has to take presence over everything else. On average, property close to rising water will sell for 7% less than similar homes in other areas. The risk is more complex than just flooding or the high risk of severe storms.
Climate change plays a role in rising waters and how they affect real estate. Homes that weren’t considered at risk a decade ago are now in the path of serious problems. Before buying any real estate, it is a good idea to look at the outlook for rising waters in that area. The home may be safe now but will that be true 5 or 10 years down the road?
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Erosion
One of the underlying concerns of rising waters and real estate is the issue of erosion. It can cause the ground to shift because of expansion and contraction. The soil becomes loose and the property may shift. Eventually, this can cause the foundation of the property to be unstable. It is very expensive and an extensive repair to reconstruct the foundation when this happens.
Erosion tends to happen slowly, over the span of several years. Regular inspections by an expert can prevent serious damage. They can identify early signs of erosion and help you create a plan to eradicate it. Keeping the structure of the property secure is vital to the safety of everyone inside. The foundation of any property close to water should be inspected by a professional before you buy it.
If there are any issues with the structure that can prevent you from moving forward. It may encourage you to offer a much lower price than what the seller is asking. That lower price would give you ample funds to take care of repairs to the foundation. You don’t want to buy property by the water and then also end up with lots of money invested in the foundation for it to be safe.
How to Lower the Risk
If you are set on living close to water, you don’t have to just hope for the best. You don’t have to cross your fingers for luck to be on your side. Being proactive can help you lower the risk of damage from water to your property. Waterproofing the foundation with veneer is a good place to start. Don’t stop there, do the same around windows and exterior walls. This should be completed annually.
Non-porous materials should be used for the flooring. Have ample sandbags on hand and flood barriers for your entryways. Should water levels rise, you can prevent the water from getting inside of your property with these essentials. Essential systems for HVAC, plumbing, and electrical should elevated. You don’t want them to get damaged or ruined due to water.
Higher Insurance Premiums
All insurance rates are based on the likelihood of something happening. With waterfront property or real estate within the direct path of rising waters, the cost will be significantly more. The risk of water damage is a possibility, and it can’t be ignored. The insurance companies aren’t going to take a chance they have to pay out large sums of money. To protect in the event of that happening, they charge more for coverage of real estate in these locations.
The coverage must include water damage, flooding, and a complete loss in the event of a natural disaster. The premium will be based on the value of the home and the contents. It is recommended to get an insurance quote on such property before making an offer. Sometimes, the cost of insurance is as much as the monthly mortgage. You don’t want to discover the cost is more than your budget can handle.
Talk to a Real Estate Agent Familiar with how Rising Water Affects Real Estate
Gathering information and being informed about the pros and cons relating to rising water and how it affects real estate is important. Talk to a real estate agent familiar with such details. They can give you insight into the average insurance cost and anything you should be aware of and answer any questions you may have. They stay on top of such issues and can guide you through them. You have to decide if you will buy property around water, but the information they share can help you with your final decision.
The forecasting relating to real estate and rising waters into 2050 is grim for some regions. The rising levels indicate many of the waterfront properties will experience significant damage or be wiped away due to storms and the water currents. Such details are only estimations, but they are based on scientific data. Such information can influence real estate purchases and the amount of money the properties will be sold for.
