Oklahoma State University: Financing, Rebates Available For Storm Shelter Shoppers

Press release from Oklahoma State University:

2022-02-16

Storm shelters are a common fixture in many homes throughout the South and Midwest.
For residents considering one on their property, Oklahoma State University Extension offers helpful resources on how to select the appropriate shelter for their individual needs and budget.

As with many features in a home or on land, people may wonder if installing a shelter
adds dollars to a seller’s asking price. Oklahoma’s current real estate market is
competitive with high demand and low inventory, and a storm shelter often appeals
to buyers, said Christi Hollon, a real estate agent with Coldwell Banker Select in
the Tulsa area.

“A storm shelter is no different than any other house feature, such as a pool, shop,
carport or granite countertops,” she said. “Sellers won’t recuperate 100% of the cost
for adding those things, but they do give you a leg up on selling property when compared
to other houses on the market without a shelter.”

Depending on the initial shelter cost, Hollon said an appraisal might add $1,000 to
$4,000 to a home’s value. Shelter prices range from $3,000 to $30,000, depending on
the size, customization, building material costs and type of installation. The three main options are an underground shelter, a space retrofitted in a garage floor or an aboveground
safe room that is bolted to a concrete floor.

The Federal Emergency Management Agency (FEMA) also provides helpful information on safe room selection and funding opportunities. 

“Contractors should build to FEMA P-320 recommendations that help home or business
owners assess their risk and determine the best type of safe room for their needs,”
said Scott Frazier, OSU Extension specialist in biosystems and agricultural engineering. “Whether building
the shelter yourself or having a contractor build it, the P-320 specifications are
helpful and available at no cost.” 

“In 2021, we installed 1,300 shelters,” he said. “Our business followed suit with
the housing market, and we work with a lot of builders to install safe rooms as homes
are under construction.”

FamilySAFE company representatives also report appraisers giving full market value
for shelters in some instances.

“People are rolling them into their mortgages if they qualify for the extra expense,”
said FamilySAFE owner Vince Mims. “I get calls almost weekly asking for current prices,
because buyers request to include the shelters in the sale and will pay full value
for them. Sellers will often contact us to buy another shelter for their new home
as well.”

A storm shelter is an investment, and the final price tag is often the deciding factor
for residents and families seeking a safe haven during storm season. Oklahoma’s SoonerSafe Safe Room Rebate Program through the Oklahoma Department of Emergency Management provides a rebate program
to a few residents each year through a lottery system.

Other groups, such as the Choctaw Nation, offer storm shelter discounts or rebates, and FEMA grants are often available at
the county level. Residents should consult with their county’s emergency management
office for more information.

Financing is also available for storm shelter purchases. Rate and service terms depend
on a city’s individual market. Thomas Walraven, assistant vice president at BancFirst
in Stillwater, said the most direct way to learn about storm shelter loan options
is to contact a local bank’s loan department.

“Finance rates and service terms for a storm shelter are similar to those for a new
HVAC system, aboveground pool or even a car, ranging anywhere from under $10,000 for
60 months or less than $5,000 for 36 months,” Walraven said. “It’s always best to
check with local banks first because shelter companies might partner with banks to
offer discounts.”

Once a shelter is installed, homeowners can begin to enjoy the safety benefits of
their purchase. For residents living in frequent storm zones, peace of mind is priceless.

“Buyers are always asking me to speculate on how much home renovations will increase
the selling price of their home, and I always tell them to avoid looking in the future
and instead, focus on the present,” Hollon said. “If a storm shelter is important
to you and your family, it’s worth every penny.”

This press release was produced by Oklahoma State University. The views expressed here are the author’s own.