What Happens To Property Values in Neighborhoods Near Sinkhole Activity?
 

While many of you who already live in the Villages seem to take the recent reports of sinkholes affecting some homes there in stride, it is a little more than scary to a potential buyer. The deductible for a non-catastrophic event could be catastrophic by itself.

Do you know how having a house with a sinkhole in a neighborhood affects the surrounding property values? Would you buy in a neighborhood that has had a sinkhole?

I think it is scary because there is no warning, so there is no way to prepare. Earthquakes, Hurricanes, Tornadoes, snowstorms, are events that usually come with some warning.

With my luck, I'd be backing my golf cart out of the garage and drop right in! I wonder how long it would take my husband to notice I was gone????

Seriously, this is not a "the sky is falling" post, but it does make me hit the PAUSE button momentarily.

I bought in Florida!

do not worry about things you can not change...if you live your life afraid, you will miss too much of life

Well , I was a potential buyer with thoughts of purchasing this summer after my 3rd visit but I am now starting to rethink-- a lot more Q and A needed regarding Homeowners -Catostropic ( ect) Ins and what types are avail and not avail now to new homeowners ect .ect . ect. Anybody way in here??

If you purchase near Tampa the concentration is greater. We are also the lightning capital of the United States here in Central Florida. All of the homes now built and those that will be built will be sold and we will live happily ever after.


There are AWFUL tornadoes in Oklahoma. Risk of the big one in California, and the chances of something awful happening to you here would be more like a golf cart accident. 13 people have been killed in golf cart accidents in the last four years. But no one from a sinkhole and no home has been condemned. All have been repaired. Eight homes have burnt to the ground in the last seven years in The Villages from lightning strikes.


You can play, or you can pass.

Actually, there are some warnings for sinkholes -- serious foundation and wall cracks give pretty good hints that you have foundation problems, which seem to equate to sinkholes in Florida.

Every area has problems of some sort. California has mudslides (usually only hint there is a lot of rain and living on a hillside with little old growth) and earthquakes (no warnings there whatsoever); the Midwest has tornadoes (warnings they're coming but no promise of the path they will take); Northeast gets severe snow storms and some hurricanes. You have to pick and choose what risks you can live with. To me, earthquakes, sinkholes, mudslides, fires are things to respect but not something to be overly concerned about. I refuse to live in snow and blizzards and I'm not thrilled that we've have tornadoes (really, really don't like those) and would never live on either coast of Florida (have a thing about living that close to hurricanes).

I don't know if sinkholes lower neighboring property values but I imagine it would drop them somewhat unless someone can show an engineering report that the ground is very stable for a particular house (which I'm not sure is feasible). Actually, I'd be willing to buy a home that had a sinkhole repaired if I could get reasonable insurance for it.

I'd say bigger risk here is lightning strikes, which have been known to burn down a few houses in TV. We're probably going to hear of more sinkholes this year because of the weather last year -- too much rain at the wrong time.

Our insurance agency said we had a bigger risk from lightening strikes than sinkholes, I'm beginning to wonder with all this recent activity. I think getting reasonable insurance rates would be the main issue in selling a house that had sinkhole remediation. You would still be covered under your main home policy for catastrophic damage where your home is deemed unsafe to live in (Fl. law), but I'm guessing based on the house past history the rates would be very high. I doubt any company would underwrite a secondary sinkhole insurance policy. Secondary policies cover issues that arise from having activity under or near the house that cause problems such as window/door sticking, cracks in foundation, walls, or slabs and you now have to pay a high deductible like 10-25% unless you are grandfathered in under an existing policy. When we bought last year, we checked out several companies and they all said if there had been a sinkhole within a mile of the home to forget about getting secondary sinkhole insurance. They said a lot of companies that previously wrote policies had stopped, kind of like hurricane policies. We also had friends tell us last year that their secondary sinkhole policy was not renewed on their five year old house (basically, the company stopped writing sinkhole policies in Fl.). I guess it's the chance we take for living in Paradise!

I do understands your concerns, but...every place in the country has problems of some kind, either sink holes, weather, dangerous animals, etc. You are concerned about buying a home here. Are you planning on returning to rent or vacation here?? If you are, that doesn't make sense. Sink holes don't just happen to the people who own the homes. They could happen to the homes you are renting. You just never know.I am not trying to make light of this, but there are things you can do to be pro-active to try to minimize sink hole damage to your property. I may have a sink hole tomorrow, or I may get struck by lightening, or I may be in a car accident. No guarantees in life. Just love what you do and do what you love.

You do realize that you answered your own question?

Elizabeth....you truly "get it"........as does everyone else I have spoken to**. We pray that everyone and their homes stay safe, but it is a concern and not a minor one at that.

**Except for the apologetics who feel the need to post with disdain towards innocent honest comments or concerns.
The word "apologetics" is derived from the Greek word "apologia" which means to make a defense. It has come to mean defense of the faith. I'm not using it as refers to religion here, but to a defense of their hometown.

Obviously, those already living in The Villages do not get too excited about these news blips on sinkholes in The Villages, that seem to be happening more frequently. More power to them, for their stoicism. Actually, I can understand both sides of any story.

From afar, people can be a bit more concerned perhaps......
At our age in life, it's too hard to begin over again and then over again due to a catastrophic ground collapse. God forbid.

I loved that second to the last paragraph. ditto.
"What?" "Grandma's missing?" I wonder if they'd find me?

My fear would be that it would happen "under the bedroom area" ****and no one would realize that such an event had occurred if they did not see it with their own eyes as compared to an outdoor sinkhole which is more visible. ****(such as what happened to the man in Brandon, Tampa Bay area, where no one could rescue him from his bed)

Again........I say "AMEN". Thanks for posting important feelings, shared by many of us still living out of state but gearing up to list our homes for sale.

We're in PA and have sink holes. There is one that keeps developing about 3 miles from Hersheypark. It became a "hot" commercial property. The value escalated as interest grew. There is now a sports bar called the Sink Hole. Within the last 2 months the hole reopened and when the road reopened, the place was packed with patrons. I understand this is a commercial property and not residential, but the owners saw beyond and capitalized.

With rates increasing, housing prices going up, only you can decide what level of risk you're willing to take. We tend to see life through our rose colored glasses and so far, we have few regrets with the decisions we've made. This includes our recent purchase in The Villages.

The OP has made a very legitimate comment. How in the world will the home owners of the homes immediately impacted by the recent sinkholes ever resell their homes? I would think that they would have to reveal that there has been major sinkhole repair to their property when selling the home, and with all the homes available, why wouldn't a potential buyer just look elsewhere? I guess the real question that should be asked is " if I have had a sinkhole on my property repaired, is my property in more danger, less danger, or the same danger as a property that has never had a sinkhole." Now, everyone will voice an opinion on this, but it would be nice to hear from a geologist.

Well said. I would not let the threat of Florida sinkholes keep me from moving here, but if I had the chance of buying a house near a house that had previous sinkhole activity, or in a neighborhood that was devoid of sinkholes, it would be a no brainer. I don't see any reason it wouldn't lower property values, unless, there was professional engineering verified reports that the property was safe or safer than other properties.

Out of about 55,000 homes a handful had issues, those are good odds.

You must get full sinkhole insurance when you close not just catastrophic,

Elisabeth, Good question.

Glad no one has attacked the poster.

It is good to do due diligence before moving and make a decision that you are comfortable with.

I have been on this forum waaayyyy tooo long....STILL a Wannabe.

The Villages has sinkholes, lightening, had a tornado, has black bears, panterhs, snakes, alligators, snowbirds, New Yorkers (Ok just kidding here).

AND YET I would LOVE to live there. There is no place like it!!!! The people are great, the actiities can'be topped, the place is beautiful and again the PEOPLE ARE THE BEST!!!!

Is it my understanding that some homeowners here do not have Sinkhole Insurance? I know when I purchased my home- ASI insurance offered me sinkhole coverage, but at a 10% deductible for the amount insured on my house.

Was this insurance offered to some homes and not others??? I am feeling very sorry for the two homes mostly impacted in Buttonwood and now Mallory. The cost of the one deductible 21,000+/- ....and now seeing Buttonwood problem might not be fixed?

ssmith...Don't forget the 9 wild boars they hunted down and killed over on the Heron golf course last week and the water moccasins on hole #9 on Jacaranda golf course. I'd still live nowhere else. Love it here.

Sinkhole insurance is not usually offered on preowned

So other than a catastrophic event that would be covered by your homeowners policy, the owner of a pre-owned home would bear 100% of the costs associated with any repairs/damage due to sinkholes?

My advice to you. Since you have concerns about insurance, you should call an insurance representative here in Florida. You are only going to get opinions from the posters. Some may be right others will relate what they heard on the 19th hole.
An Internet search can give you phone numbers of local insurance reps.

Remember the sink hole that swallowed the corvette museum in Kentucky or Tenn? We are really no different than any other place in the USA.

It is my personal opinion I have equal risk with sink hole, lightning, tornados. All three have destroyed houses in TV. If I lived on the ocean beach erosion could claps my house in one storm. At another home I owned in FL my home suffered accumulative damage from 3 hurricanes before the insurance adjuster got to my house for a total of $62,000 damage. I can avoid ocean damage, mud slides, avalanches and maybe just maybe earth quakes. Another option would be a house in Detroit, low cost $10,000/$20,000.

I think that the sales pitch would be that we've already had a sink hole and it has been repaired and the ground is now stable. The odds against having another one on this property are astronomical. In fact there might be more of a risk in buying a home that's never had a sink hole.

Insurance is certainly an issue with sinkholes. Most have a substantial investment in their homes and insurance companies can be difficult to deal with.

I feel really bad for those dealing with sinkholes in TV right now. They could use our concerns and our prayers.

Where I was raised we had "mine subsidence", another form of sinkhole. The school I went to had to be closed due to mine subsidence. The so called "experts" said it was ok to build back in the same place and guess what? It fell in again!

Lawsuits were filed and it was several years before it was settled. The school was finally built on property about a mile or so away.

Now, would be a good time to check insurance policies. Maybe there needs to be some legislation passed regarding insurance and sinkholes. Something to research.

Sinkhole has expanded....www.**************.com

************** website today...

I am sure the value of the home near the sinkhole in TV is affected. How would you feel if you had to make that claim against your insurance. Once you make that claim to them, you are going to be uninsurable to 99% of the company's in Florida. That's why when you make a claim for that you want it to be for the worst case. Even if you make a claim on the sinkhole coverage and its not for a total loss, you will still face the same situation. That is why the extra for sinkhole coverage might not be worth it. Because you want to do what ever you can not report a claim, like I said unless its worse case. Once you do it hurts your chances at getting home coverage in the future and also anyone who ever buys the house too. That will drop the value

Someone asked if sinkholes can be found anywhere else.

Here is proof that it isn't a regional problem. This is the SE corner of Minnesota.


Finding Minnesota: The Sinkhole Capital Of The U.S. « CBS Minnesota

ATL news
 

FYI only: On the Atlanta morning TV news about the Villages sink hole.

Said the limestone under ground is deteriorating more rapidly than in the past. (or something like that as I really wasn't listening however I was amazed seeing the hole in the ground).

The question was, would you buy a home that has had a sinkhole such as this one. I would not, because there are so many homes in the Villages to buy, why buy one that has had a significant sinkhole repaired. I am hoping the Villages out of kindness will relocate these two families, demolish the homes affected and plant some bushes and plants on the lots. I don't think the owners will ever be able to sell these homes.

Don't hold your breath.

:a20:

If the home with a sink hole was repaired properly is a home that no longer will have a problem with sink holes. The house now sets on solid rock!

Funny....nobody has jumped all over the ramifications of dumping all this fill, concrete, etc. into the aquifer. Could make for some interesting discussion regarding pollution of ground water.

We should add sink hole research data to wannabes asking for advise about buying in TV. I would never buy a house in close proximity of a recent sink hole.

Very true. If a sink hole forms, they should allow it to be a pond and remove homes close by.

I also just read that anyone living within a mile of a sinkhole will be affected in the pocketbook.**

These unseen caverns and catacombs under the ground are the frightening part as one never knows where a new sinkhole will pop up next. If I lived next door to the recent one, I would not be so complacent. No one can truly see what is going on under the ground on the entire block of homes.

Also, from what I read....the ones in Lake County can occur "abruptly" without warning.

**Meaning not being able to sell their home, or else if they can sell it to a very brave stoic person (and whom would that be?), the price would be rock bottom.....and who can start over again easily when they are old and retired?

p.s.
Were these potential sinkholes revealed to new buyers years ago?
It might be a class action lawsuit. The old saying, "Buyer Beware" comes to mind.

Are realtors required to disclose nearby sinkholes to buyers?

Question.
 

The house maybe sitting on solid rock, but the area around the solid rock is unstable and still susceptible to ground collapse. No? Just asking.

The hole was filled with concrete, etc and sunk another 6 ft. I realize it was settling however, what's to stop it from sinking further?

Good reasoning
 

Good reasoning; we've been wondering the same.
It's great to be eternally optimistic, but foolhardy not to do the research. There is a wealth of info on Florida sinkholes out there.
Also, which counties they are more prevalent and less prevalent......more severe, less severe; more prone to happen etc.

No one has control over Mother Nature's hurricanes, tornados, tsunamis, flooding, etc........but one does have a choice as to where to build or buy their retirement home.

The hurricanes and tornados do not particularly bother me as there will be some warning. Not so for these sinkholes or worse yet, a catastrophic ground collapse. We are definitely not naïve to think they will never occur again, repeatedly......especially with climate change and more frequent rains. Florida's climate has definitely changed, along with the rest of the U.S.


http://water.usgs.gov/edu/sinkholes.html

USGS Water-Science School data on sinkholes.
Very educational; keep scrolling downward.