Season Is Here, and the 50% Rule to Know Before You Remodel

to Know Before You Remodel

If you own a property in Southwest Florida, you can feel it in the air. Halloween is this Saturday, and season, which generally runs from after Halloween to around Easter, is about to begin. The snowbirds are heading our way.

The local numbers are encouraging.

The Local Numbers

SEPTEMBER

In September, 752 single family homes closed in the Naples, Bonita Springs, Estero, and Fort Myers areas, the median sold price was about $588,000, and 156 of those sales, about 1 in 5, closed at $1 million or more.

UNDER CONTRACT

As of today, 990 more single family homes in those areas are under contract.

More buyers in town means more people asking about older homes, so here is a rule worth knowing before anyone talks about remodeling.

The FEMA 50% Rule

It is the FEMA 50% rule. If a home sits in a Special Flood Hazard Area, is below the required flood elevation, and improvements or storm repairs reach 50% of the value of the structure, the home may have to be brought up to current flood regulations, which can mean elevating it.

The 50% is measured against the structure only, not the land or the purchase price, so the line arrives sooner than most buyers expect. Voluntary renovations count, labor and materials are included even when the owner does the work, and some communities add up improvements over a set period. Lee and Collier counties generally start from the Property Appraiser’s building value, and the local floodplain office makes the final call.

Older Homes

Older homes are more likely to sit below today’s required elevation. Before you commit to a home or a remodel, check the flood zone, check the building value, and confirm with the local floodplain office.

Sources: Southwest Florida MLS (Matrix), FEMA Substantial Damage Quick Guide, Lee County and Collier County floodplain management pages.

If you are considering an older home, or planning a remodel on one you own, I am glad to help you run these numbers first.