Tips for Selling Hawaii Land in a Flood Zone

When you think of Hawaii, images of pristine beaches and lush tropical landscapes probably come to mind. But for landowners in the Aloha State, particularly those with property in flood-prone areas, the reality can be a bit more complex. If you're looking to sell land in Hawaii that happens to be in a flood zone, you're in for an interesting journey - but don't worry, we've got your back.

Let's start with some eye-opening facts. Did you know that about 20% of Hawaii's land area is considered to be in a flood hazard zone? That's according to the Hawaii Department of Land and Natural Resources. It's a significant chunk of paradise that comes with its own set of challenges and opportunities.

Now, you might be wondering about the lay of the land, so to speak. The 2017 Census of Agriculture for Hawaii tells us that the average farm size here is 161 acres. That's actually quite a bit smaller than the national average of 441 acres. It just goes to show that when it comes to land in Hawaii, we're dealing with a whole different ballgame.

But here's where it gets really interesting. The same census reported that the average market value of agricultural land and buildings in Hawaii was a whopping $1,131,546 per farm. That's some serious cash we're talking about. It just underscores how valuable land is in Hawaii, even with the flood risks.

So, you've got a piece of this valuable, albeit flood-prone, paradise that you're looking to sell. Where do you start? Well, grab a cup of Kona coffee and let's dive in.

Getting Your Bearings: Understanding Hawaii's Flood Zones

First things first - you need to know what you're dealing with. In Hawaii, we don't just have one type of flood zone. Oh no, that would be too simple. Instead, we've got a whole alphabet soup of zones designated by FEMA. Here's the quick and dirty rundown:

• Zone A: This is your high-risk area. There's a 1% chance of flooding each year. Doesn't sound like much, but over a 30-year mortgage, that adds up to a 26% chance of flooding. Not exactly comforting for potential buyers.
• Zone V: Think "V" for "very coastal." These are your beachfront properties that not only have to worry about flooding but also get to deal with the joy of storm waves. Exciting stuff.
• Zone X: This is your moderate to low-risk area. It's not exactly high and dry, but it's better than the alternatives.

Knowing which zone your land falls into is crucial. It's like knowing whether you're selling a surfboard or a snowboard - different tools for different conditions.

The Nitty-Gritty: Tips for Selling Your Flood Zone Land

1. Do Your Homework

Before you even think about putting that "For Sale" sign up, you need to do some detective work. Get a current flood zone determination from FEMA or a licensed surveyor. It's like getting a medical check-up for your land - you want to know what you're dealing with.

Also, consider getting a topographic survey. It'll show you the high and low points of your property. Who knows, you might discover a secret hill that could be a selling point!

2. Price It Right

Look, we all want to make a killing on our land sale. But when it comes to flood zone properties, you've got to be realistic. Think about it - buyers are taking on extra risk and potential costs. If you price it like it's sitting high and dry on a mountain top, you'll be waiting a long time for a sale.

At Land Boss, we've seen it all. Typically, it takes about 1-2 years to sell vacant land. And let me tell you, overpriced flood zone land? That can sit on the market longer than poi at a luau.

3. Spin It Positive

Sure, being in a flood zone might seem like a drawback. But every cloud has a silver lining, right? Maybe your land is perfect for an elevated beach house design. Or perhaps it's close to water - that's a selling point for many folks. Heck, there might even be tax benefits for flood mitigation efforts. Get creative!

4. Honesty is the Best Policy

When it comes to flood risks, you've got to lay all your cards on the table. Provide potential buyers with the flood zone maps, historical flood data, the whole shebang. It's like surfing - if you try to hide the shark in the water, someone's going to get bit.

5. Become a Flood Insurance Guru

Many buyers might not know much about flood insurance. This is your chance to shine! Explain how it works, why it's necessary, and how rates are determined. You'll come off as helpful and knowledgeable, and you might just ease some of their concerns.

6. Flaunt What You've Got

If your land already has some flood mitigation features, make sure to highlight them. Elevated building pads, drainage systems, retaining walls - these are like gold in flood zone real estate. It shows buyers that you've already put some thought (and money) into addressing the flood risks.

7. Market Like a Pro

Selling land, especially in a flood zone, isn't for the faint of heart. It takes some serious marketing chops. Consider hiring a real estate agent who knows their stuff when it comes to flood zone properties. And don't skimp on the visuals - great photos, videos, maybe even some drone footage can make a world of difference.

8. Patience is a Virtue

Remember what I said earlier about it taking 1-2 years to sell vacant land? Well, with flood zone property, you might need to add some extra patience to that equation. Be prepared for more questions, longer due diligence periods, and possibly some back-and-forth on the price.

9. Think Outside the Box

If traditional selling methods aren't working out, it might be time to get creative. Have you considered selling to a land investment company? Or maybe exploring lease options or owner financing? At Land Boss, we've been in the game for 5 years and have done over 100 land transactions. We buy land at a discount with cash, which can be a great option if you're looking for a quicker sale.

10. Stay in the Loop

Flood zones aren't set in stone. FEMA updates their maps, local building codes change, new flood mitigation projects pop up. Staying informed about these changes can help you adapt your selling strategy as needed.

Final Thoughts

Selling land in a Hawaii flood zone isn't always a walk on the beach. But with the right approach, some patience, and a bit of aloha spirit, you can navigate the challenges and find the right buyer for your property.

Remember, whether you decide to go it alone, team up with a real estate agent, or explore cash offers from companies like us at Land Boss, the key is to stay flexible and keep your cool. After all, you're selling a piece of paradise - flood zone and all.

‍