Hurricane Harvey caused massive destruction to hundreds of thousands of buildings and properties. Some people lost everything to the floods, but others still have homes that they may be looking to sell. In a time where homeowners would think that their properties would be difficult to sell, investors have been buying up properties like hotcakes.
What Is the Goal of Investors?
Obviously, the goal of investors it to make money; however, in this situation, investors are wanting to pitch their tents for the “long game.” After the floods and after receiving flood damage to their homes, residents are selling their properties at a significantly lower price than they would have three months ago. Investors see this as an opportunity.
Investors want to buy the properties at a fraction of the cost, either remodel them or rent them out, and then sell them in a couple of years for profit. Some of the areas affected by Harvey are known as the more affluent communities in Texas. If a home that cost $300,000 before Hurricane Harvey was hit by the floods, it could now cost half the price. Investors will buy the home, fix-it up, and sell it in a couple of years for profit.
While this is the plan, Hurricane Harvey has shown that ideas can be interrupted by Mother Nature. While investors are waiting for the housing market to stabilize and rise, another hurricane could hit and force the investors to take a loss. This is why homes that flooded in Hurricane Harvey but are outside of the 100-year flood plan are the most desired properties. These homes are at a reduced risk for future flooding and are therefore considered to be a “better investment.”
Other Homeowners Are Waiting for an Insurance Payout Before Selling Homes
As owners are selling their homes for less than what they used to be worth, some proprietors are waiting to hit the housing market until they can remodel or refurbish their properties to increase their home's worth.
Why are they waiting for remodeling?
Because some homeowners need insurance payouts before they can remodel their home.
If you are looking to remodel your Houston home but are waiting for insurance payouts to do so, you could be waiting for a while. Some insurance companies are known for taking multiple years to pay out insurance claims for homeowners. While you are waiting for fair compensation, investors are striking at homes now. You may miss the housing surge if you cannot act fast and out your house on the market soon.
If you are in this situation, Arnold & Itkin can help. Our goal is to get proprietors the compensation they need to remodel their homes before they sell them on the market. There is no reason that your losses should be compounded because of slow insurance payments. Contact our Hurricane Harvey attorneys now.
If you have pressing questions that need immediate answers, call (888) 400-2101 for a free consultation concerning your insurance situation.