The prevalence of reports of sinkhole damage in the U.S. this year has raised questions about the impact on property values.
It’s not the threat of a sinkhole that damages property value –– there’s insurance coverage specifically for sinkhole damage. In fact, a 2007 study found no statistically significant difference in home values in areas prone to sinkholes. Like earthquakes, it’s only aftersinkholes hit your property that problems arise.
Rob A, a Florida real estate investor and realtor who has bought and sold more than 30 sinkhole properties in the last five years, told CF13 News he tells owners of damaged homes to knock 30% off their asking price, plus the cost of any repairs.