Is It Worth Buying A Home That Was Hit By A Hurricane?

Affordability is a major issue for many people looking to buy a home right now, and the problem does not show signs of letting up any time soon. With rent prices also on the rise, you may feel like making some riskier decisions to try to get your dream home. For many people, this dream house is situated near a coast, offering the opportunity to enjoy warm weather days on a beach. However, opting for coastal property will also require dealing with some pretty severe weather. From tropical storms to hurricanes, homes in these areas are prone to flooding and damage. Recently, even the landlocked state of Kentucky was significantly impacted by a hurricane. 

In the immediate aftermath of a hurricane, you are likely to find a drop in housing prices as the houses and areas are devalued due to the damage. These immediately lower prices may be tempting if you are looking for a deal, but there is a lot to consider before investing in a house that was hit by a hurricane. But the basic question is, is it worth it? Short answer: It depends.

While there might be some surprising financial benefits to buying a home that was hit by a tropical storm, even beyond the discounted price, rebuilding the home will likely require significant time and resources. The restoration process may mean that you are unable to live in the house for some time, and there is always the potential for a home in a hurricane-prone area to be hit again, or for the renovation to take longer than expected. Both scenarios require contingent plans. Overall, the decision is pretty risky, and the right decision depends on your goals and budget.

As surprising as it may sound, there are some sound reasons to consider buying a home that was recently hit by a hurricane. First, there is a high potential return on investment. While the prices of houses take a dip immediately following a natural disaster, trends show that within a few years, real estate prices often bounce back to their pre-hurricane rates due to rebuilding and increased demand. Since housing in the area could be limited due to damage, property values may rise even beyond what they were before the storm. If there is a location that you want to live in and otherwise would not be able to afford, the initial dip in prices immediately following a hurricane could be a good time for you to get into a location that will still have value later on.

If you hoped to do significant renovation on your new home to make it your own, then a hurricane-damaged home could be a good opportunity for you. Depending on the extent of the damage, repairing or even rebuilding parts of the house may be necessary. You won't be left waffling about whether a desired renovation is necessary, because significant changes will be needed either way. While not perfect, there are also innovations that can aid in hurricane-proofing your home, which could help you protect your new property from future damage. Overall, if you have the budget and time for repairs, along with the grit to stick out potential future disasters, buying a home hit by a hurricane could be worth it. 

On the other hand, there are plenty of cons to buying a home that has been hit by a hurricane. Considering all the ways flooding can damage a home, the extent of the damage caused by a hurricane will vary from one house to another. On average, a house with moderate hurricane damage costs about $10,000 to repair exterior components, such as roofing, siding, and windows. Interior flooding damage will add thousands more to that. You should have the house inspected to determine the level of damage before buying, and compare your estimated repair price with the reduced price of the house. It is also necessary to consider the livability of the home. You may be able to buy it and fix it up, but if you have to pay rent to live somewhere else while the house is repaired, then expenses can add up quickly.

Research also predicts that hurricanes will continue to intensify and cause more severe effects in the next century. Even if you implement some smart storm prep tips to minimize costly damage, you could find yourself in the same position as the person you bought the house from within a few years, deciding to sell your home rather than trying to keep up with repairs and insurance prices.

Buying a home hit by a hurricane is not as wild an idea as it may initially sound, but you must do significant research on the area's history with hurricanes and flooding, get the house inspected, and check insurance prices to make an informed decision.