Thanks Laurie and Kevin! Excellent information. I appreciate your wisdom!

Doug – I would write the Perk Test to be done at the buyers expense along with other due diligence. They have 14 days to complete all due diligence. You need to give them a little time. This is a big expense and they don’t want to get stuck with a property that won’t perk. If there are homes with wells in the are, then it will perk.

Hey Doug,

Congrats on getting there with your first property. Although it would be nice to keep the land active while someone is doing inspections, it’s not the norm. You can negotiate the duration of the inspection/due diligence phase before they sign the purchase agreement and document the details – including an end date for contingencies – in…[Read more]

With regard to perk tests – I recently put my first property on the market (woo-hoo!) and am getting a lot of interest. Several potential buyers are wanting to go under contract and then have time to do a perk test before closing, as if this is a SFH with a inspection contingency situation. How are you all handling buyers requesting this? My…[Read more]

Doug – in some areas (like FL) everything is in the 100 year flood zone and can be built on with proper floor elevation. Disclose as Laurie says and you should be fine. People in that area probably expect this.

Hi Greg,

I start with the lowest comp and look at the listing. If it’s all floodplain or mostly powerlines, doesn’t have access or is Twizzler-shaped, I ignore that comp and go to the next cheapest and do the same. In other words, I don’t use a comp if I wouldn’t buy that land. I say no to quite a few signed PAs as a result, but that’s a good…[Read more]

I always disclose it, and if it affects the process or cost of building I will give a short explanation and provide contact info for the county. I’m not the expert on the limitations or requirements, so I don’t want my listing to sound definitive on whether they can build.

Cheers,
Laurie

Laurie and Kevin – when you have sold property in flood zones how much are you disclosing about that in your advertising and to potential buyers?

I just found out I inadvertently bought a parcel in a flood zone. Can still build on it as long as the structure is elevated. Other homes and buildings are in the flood area although they were present…[Read more]