"We Buy Sinkhole Houses" Really?

I frequently see signs indicating “we buy sinkhole houses,” and we have a sinkhole home.  Do you suggest we contact them about buying or should we just do the repairs with the money provided by the insurance claim? Most of the contractors or investors we deal with who buy sinkhole homes are people who have extensive experience in repairing the homes.   By buying homes with sinkhole damage, they can use their own experience and cover the material costs, just like a contractor buying and flipping houses.  Sometimes, these buyers can be good to work with because they may have more flexibility and options, as opposed to someone who has no such experience.

Would I Be Getting A Fair Deal?

Like any other buyers out there, the real question is whether you believe you would be getting a fair deal with them for the home in its current, unrepaired condition.  Additionally, you have to balance that with your interest in repairing and keeping your home.  I would say that the vast majority of our clients are looking to sell and get out from beneath a sinkhole home (no pun intended).  As such, they are looking for specialized buyers.  Again, like any other real estate transaction, do your homework.  Compare the price of your home as if it did not have a prior sinkhole repair at that location.  In fact, working with an experienced realtor, you may be able to get information on how much decrease in value results from a home with  prior sinkhole activity.  These issues are subject to a great deal of variability, but it may simply be more sinkhole information for you to assist in making your decision.

Should I Keep My Home?

As to simply keeping your home, you should consider a lot of variables.  You should consider the possible damage problems that could result in the future.  While many people repair their sinkhole damage and are satisfied with the result, some never feel things are ever right again.  You should also consider the impact of your sinkhole damage on your ability to get sinkhole insurance in the future.  Some insurance companies have very specific parameters for when they will insure a repaired sinkhole home.  Certainly, you will want to keep all information on the home, in the event the manner in which you conducted the repairs is ever disputed.  We counsel clients on these issues, and there is no one-size fits all answer.