What is the oil spill going to do to our property values especialy along the coast of Alabama. We are already beginning to feel the effects with a large number of cancellations for summer rental properties. The oil is barely here and I personally think we are in for a long road ahead of us. The most immediate impact will be loss of rents, the weekly rentals for June, July, & August make up over 50% of gross rentals for the year to the typical condo or home owner on the coast. Due to huge property value losses over the past several years in the area, it would be hard for me to believe that this wouldn't spur another round of beachfront foreclosures. Now BP has said that they will pay for lost rents if they can be documented. So we will wait and see.
An even larger question is what effect will the spill have on overall property values. My guess is if the oil can be dramaticaly slowed down then we are looking at a lost summer of rents and possibly several months or even years of cleanup, however if they do not get this stopped and we must rely on the relief wells then we are in for some serious problems. The damage to our beaches, marshes, and coastlands would take years if not decades to recover and the loss of tourism would be castotrophic for an area that lives and breathes on the money of vacationer's. Will BP pay for the loss in property values? Bp spokesman said ‘We’ll determine the legitimacy of claims on a case by case basis,’
A recent quote from BP is just as vague as the previous quotes,
Feinberg also said that homeowners in the area suffering losses in property values will also be considered for compensation. However, determining the actual loss in property values in the area this soon after the spill may be a bit premature since the extent of damage to the region from the spill is still unknown. "Property value has diminished as a result of the spill," Feinberg said. "Let's assume that's right. That doesn't mean that every property is entitled to compensation. It's a thorny issue."
The best information we can obtain is if you are interested in filing a property value claim, you will need a property appraisal on the day of the oil spill and another whenever you decide to file the claim whether it's 3 months or a year down the road.
If you have any questions please feel free to call myself or Jimmy and we can discuss your options.
Taylor Parks
Coastal Appraisal Services
251-621-7077