The most recent severe storm, Hurricane Sandy has been called “the deadliest hurricane to hit the United States mainland since Hurricane Katrina in 2005, as well as the deadliest hurricane to hit the U.S. East coast since Hurricane Diane in 1955.” Because of Hurricane Sandy, lives were lost, power outages occurred, and $65 million of damage were accrued. Another thing that has been significantly affected by the storm is, of course, real estate.
Because a home’s value can be significantly changed by storm damage, both borrowers and lenders are in a state of confusion in the areas affected by Hurricane Sandy. George S. Wonica, a realtor in Staten Island (an area badly hit by Sandy) said that the storm’s affect on real estate “went unbelievably far.” Homes that were under contract to be sold before the storm hit have to be re-evaluated, along with their accompanying loans. Of damaged homes, Barry Goodman, general counsel to the New Jersey Association of Realtors says “Suddenly, the loan-to-value ratio of the house will not meet the lender’s requirements or the federal requirements.” Even homes that have escaped damage can decrease in value when neighboring homes have visible storm damage.
For the most part, we should not see a significant effect from the storm on Real Estate here in East Texas, and fortunately, the housing market has improved nationally in the past year. However, we should look at the difficulties they are facing in the Northeast and do all we can to be prepared in an event that we get hit by severe weather here in East Texas. By evaluating your home’s surroundings and removing potential hazards now, you may be able to protect your real estate from extensive damage in the future.
Our thoughts and prayers are with all the people who have been affected by the aftermath of Hurricane Sandy, and we hope for as speedy as possible a return to their normal homes and lives.
Tyler TX Realtor
Kerissa Payne, Re/Max Legacy Owner
2808 S Main, Ste M
Lindale, TX 75771