ST. PETERSBURG, Fla. — Among all the debris still left to pick up after Hurricanes Helene and Milton, “For Sale” signs are popping up across the Tampa Bay area.
Owners are selling dozens of properties “as-is,” wanting cash offers with no contingencies. Some are facing a short sale if they’re underwater on the mortgage. It’s happening in every county where homes flooded, from Sarasota to Pasco, sometimes at prices far below what the owner paid for it.
Peter Nemethy is the listing agent for a 3 bed, 2 bath home in St. Petersburg that flooded during Helene. It’s being sold as-is.
“This home had a little bit of water in it,” he said. “It was above the plugs, probably two and a half feet.”
The seller hasn’t replaced anything because they own the home outright, are self-insured and don’t want to put any more money into the home. They’re buying other property and need to sell now to complete a “1031 exchange.”
Others are listing and selling because they want to leave as soon as possible, but Nemethy said if you’re thinking of selling a flood damaged home, it’s best to wait.
“It would almost be better if they held off a little bit so they don't have an emotional attachment or an emotional decision on listing their house right now,” he said. “Sit back. Let's see what the market does.”
Realtor Phil Rizzo said clients who didn’t flood are also waiting to list because neighborhoods aren’t show-ready right now.
“Somebody's turning around and selling now. From a financial standpoint, it's going to be, it'll wind up being a low [price],” he said. “Just driving through the neighborhood and seeing the damage that's there, that's just a fresh reminder of what everybody is going through.”
Those with mortgage payments or forced by FEMA’s “50% rule” to raise or rebuild may not be able to afford to wait, even if it means selling for six figures less than the previous sale price.
“Those folks are going to be caught in a tough spot to where the mortgage that they have on it is going to be higher than what their land value is going to be,” Rizzo said.
As for who’s buying these flooded homes? Realtors say it’s mostly investors and wholesalers looking to turn a quick profit, speculating that despite hurricanes, people will still pay for a slice of paradise.
If you are considering a short sale, Rizzo said it’s best to consult with an attorney to go over your options. Foreclosure should still be a last resort, and if you do end up short selling with your mortgage lender, expect a serious hit to your credit score. Lenders have experience in these situations, he said, and owners should not be thinking they have to declare bankruptcy.