Friday Five: The oil spill’s impact on home sales

By: Brad Horner

Even after living in Atlanta for decades, I still call Florida “home.”  I grew up in Jupiter and proudly attended Florida State University.  And, many of my fondest memories took place on Florida’s sandy white beaches.  That’s why today’s Friday Five is a hard one for me to write, as I – along with millions of others who live and vacation along the Southeast coast – are struggling to come to terms with the long term and catastrophic effects  of the BP oil spill, which has already been called the “worst oil disaster in US history.”

Within the first six weeks following the spill, the real estate industry is already feeling the repercussions. Homeowners and buyers along the coast who have yet to see or smell oil are understandably concerned about what the future holds for their properties.

Many are worried that beach access and views will be compromised once the oil gets closer and that home prices will drop even lower following what was considered to be the recession’s bottom.  (Housing Predictor forecasted that, “Homes along the immediate path of the Gulf Coast oil leak are forecast to decline at least 30% in value as a result of the environmental catastrophe produced by British Petroleum’s gushing oil well.”).   And, WINK-TV in Tampa, AL.com, Business Insider and many other media outlets have recently quoted Realtors who have seen real estate transactions fall through along the Gulf Coast because of buyers’ concerns.

Feeling helpless is a pervasive thought amongst homeowners in light of the recent tragic events involving the BP oil spill, however, proactive measures can be taken.  Wall Street Journal reporter June Fletcher listed steps homeowners should take if trying to sell a home along the Gulf coast in her recent article, “On Florida Coast, Homeowners Jittery”:

1. Address fears preemptively and honestly on your property’s website, and don’t try to gloss them over.  Say “We realize you may be concerned about the oil spill; we are, too.”  Then link to local news stories, blogs and beach webcams to show conditions less dire than those shown on national media, which focus on hardest-hit areas.
2. Visit your property, talk to your neighbors and take date-stamped pictures of the beaches nearest your property. Upload your findings as often as possible.
3. In your advertising, focus on non-beach attractions, like live theaters, water parks, zoos, and golf courses.
4. Remember that bad news brings out bargain hunters, so be prepared to negotiate. But don’t let them take advantage of you by going below the discounts that other sellers or landlords are giving.
5. Document any losses that you incur. If you’re a landlord, keep track of cancelled reservations; if you’re selling, get an appraisal or broker’s price opinion now to serve as a baseline should property values fall. You’ll need evidence if you pursue compensation from the government or BP.