Be Careful Buying a Previously Flooded Property on Lake LBJ

Be careful buying a previously flooded property! I have personally lived through a flood on Lake LBJ and experienced the heartbreaking devastation that comes along with it. Thank God in 2018 we did not experience the loss of life and only loss our stuff but it was tragic nonetheless.

When buying a waterfront home on the lake its important to understand the flood plain and how it affects the value of the property you are buying. The last FEMA flood map updated was done in 2012 and this means that any home built after 2012 (assuming the person building it took proper measures to get the build approved by the county or municipality) should be built to flood compliance. This means that the top of the finished floor is higher than the Base Flood Elevation or BFE (the height the water is likely to rise to during a worse case event) You will even find that most homes built prior to this time are also flood compliant but there are a few instances in which the flood plain BFE changed to the point that a specific property changed from compliant to non compliant. Understand that every piece of property on the lake touches the flood plain but many of the houses are built high enough up and/or far enough back that they are likely safe from flood risk.

I see some homes for sale today that previously flooded but have been beautifully renovated and look white, bright and fresh. Prospects look at these homes and think “ahh that was a once in a blue moon event. It won’t happen again”. In my opinion this way of thinking is a huge mistake. Buying a home that has previously flooded and was not taken to current flood compliance after the flood is setting yourself up for failure. The waters will rise again!  The only time I recommend buying a flooded home is if the home one is buying has little or no value to the overall piece of property (IE – an old cabin on a prime lot).

It should also be noted that when buying a home in the floodplain the flood insurance, required for a mortgage, will tell you everything you need to know. If the flood insurance is expensive that means there is high flood risk. If it’s low it means there is low flood risk. Buying a home with a high insurance premium surely affects the overall value because homes like this cost more to own than homes that don’t have this risk. It should also be noted that some older cabins and structures, that were constructed prior to the flood plain being established, get grandfathered rates. Believe me – even when insurance pays you back in full, losing your home to a flood is something I hope you never have to experience. A recent elevation certificate done by a licensed surveyor is a good investment and will provide great insight into the flood risk associated with a given property.

Before you make a waterfront purchase engage an experienced expert that knows what this stuff means, and how it will affect you, your loved ones and the future value of your property. Don’t get sucked in to a beautifully renovated home that comes with the high probability of devastation. Be smart, invest wisely and always engage the Lake LBJ Real Estate Expert before diving in at the lake.