The way a flooded home is valued is through an appraisal, which is basically just some appraiser’s opinion on what the property might be worth. So if you order an appraisal from five different appraisers, then you’ll get five different figures, most likely. It is difficult to determine a home’s post-Harvey value until some inventory is sold on the market.
Appraisers calculate flooded property values one of two ways:
- Using pre-Harvey values: Some appraisers are taking into account what the homes have sold for in the past without applying any discount.
- Using post-Harvey values: Other appraisers are actually going through the process of discounting properties based on their opinion.