Are flood zone homes worth less?

There are plenty of nice homes in Valley Stream. Homes with neat front lawns, bay windows and maybe even porch swings. But the question many residents are asking since the Federal Emergency Management Agency introduced its new flood maps in September 2009 is: What is my home actually worth?

Flood insurance premiums are currently manageable for most residents, but come next Jan. 1, most people are expecting the cost to increase substantially.

Carol Crupi, president of the Valley Stream Community Association and a Gibson resident, has urged others who are affected by the new flood zones to contact local officials and ask them to help do away with the redrawn maps. “Everybody placed into the high-risk flood zone, effective 2009, will lose approximately $50,000 to $100,000 on their property values,” Crupi said. “If I were to sell my house today, I would lose roughly $150,000 to $160,000.” She purchased her home in 2006.

Crupi cited the high flood insurance costs as the major reason why her home has decreased in value. “Come January 1, homes in Gibson will be worth nothing because once those premiums go back up to the four digits, nobody will want to buy them,” she said, referring to a two-year reprieve on the higher rates.

Dawn Jones, director of sales at Realty Executives West in Valley Stream, said she has noticed an increase in the number of homes in the high-risk flood area that have been put on the market. She added that homes can be difficult to sell due to flood insurance expenses that arise when it comes time to close on a property.

“What I let my clients know is that if they’re planning on selling their house, they have to price it very competitively,” Jones said. “If you have a house in Valley Stream or Gibson that you want to sell fast, it has to be priced right. If the price is not substantially low, it’s kind of hard to sell it.”

Village Treasurer Michael Fox is in charge of assessing properties in the village. He said that village officials do not reassess properties on an annual basis — only when there is an improvement made to the property, such as an extension on the home or if a bathroom is added.