The Flint water crisis is putting a dent into local real estate, with property values dropping as much as 30%, local brokers say.
Local lenders have no direction from government-sponsored mortgage buyers on how to deal with the water issue. Some demand third-party water analysis, while others refuse to deal with Flint real estate altogether, Curbed reports.
"We can't close a mortgage without a water analysis, that's black and white," says Carol Landis, president of Grand Oak Mortgage, which services Flint. "But, it can quickly become very gray."
And it's not just the problem of water itself, but the stigma around it, owner of Grand Rapids-based Riverbank Finance Anthony Bird says. "It potentially reduces value."
Local brokers think the main concern is how far value could be dropping—and the next quarterly sales report should give some clarity on that. [Curbed]
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