Flood Zone or no Zone

[Rick Turman]

So today I made an offer on a property and all seems promising. However, I put that the Seller must provide a Flood Elevation Certificate and must be approved by me. The MLS shows that the property is not in the flood zone, however the County Auditor site show that it comes up to the stoop of the dwelling.

I contacted a second lender to get their opinion on whether flood insurance would be needed for both myself to flip and the new home owner once financing changes over and she said she if the dwelling is in any flood zone, the buyer would need to have flood insurance before even lending on the home.  

Has anyone ran into this before?  How does this affect the Value of the home as well as what I should ask for to sell?  

Purchase = 93,900 HC= 26k RC= 50k ARV= $210k

Thanks everyone!

[Dan Gheesling]

Hey @Rick Turman - I hold property in a residential flood zone.

About 18 months ago there was a flood, I have basic flood insurance and was promptly cut a check to cover the damages incurred, and then some.

In my experience, it is not that big of a deal as long as you have a decent insurer.

It is an added cost, but a necessary one at that.

Best of luck!