Realtor urges buyers to do ‘due diligence’ buying hurricane-damaged homes

Use caution when buying hurricane damaged homes

FOX 13's Genevieve Curtis reports on Bay Area realtors warning potential home buyers to be careful when buying hurricane-damaged homes in the Bay Area because of hidden FEMA assessments.

TAMPA, Fla. - Two months after Hurricanes Helene and Milton damaged thousands of homes across Tampa Bay, the clean-up process is still in its early stages.

Some families are cutting their losses and selling their homes as-is.

Hurricane-related debris on sides of Bay Area street.

But that could come at a cost to their buyers.

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Many families want to sell their homes to salvage what they can, while others want to invest in the area.

One Bay Area realtor wants to caution others to double-check the status of FEMA assessments on the property before making a deal.

"It looked like a pretty easy fix and flip for any investor," said realtor Ashley Stout-Fuchs.

Fuchs says an investor client was ready to buy a Helene-damaged home in Crystal River.

After doing the typical due diligence of checking public records and conducting title searches, nothing unusual emerged.

Fuchs and her client met with additional contractors, electricians, and plumbers to get estimates on the work that would need to be done.

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However, right before closing, Fuchs says her client contacted the Building Department of Citrus County to double-check that his contractor license was ready.

"At that time, the building department of Citrus County responded to him via email stating that this property was red flagged, through FEMA for substantial damage," said Fuchs.

That meant the home must be demolished, relocated, or elevated.

The letter was dated Nov. 27th, long after buying the home began.

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Fuchs said it was a shock and one that killed the transaction. Disappointed for both her client and the seller, who said it was news to them since the letter from the county came well after they had been in the sale process

Fuchs wants other homebuyers and owners to be aware.

Bay Area home destroyed by hurricanes.

"There are some (homes) that are currently on the market listed as an ‘investors dream,’ ‘fix and flip,’ and those agents and those sellers probably don't know at this point what the damage of that house is listed through FEMA," said Stout-Fuchs.

A quick search of our area in Zillow will find dozens of homes listed for sale with damage from Helene.

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Some are upfront, saying they're being sold for land value only, but some say it is still unclear whether the home is salvageable and is subject to FEMA’s 50% rule.

Some are less transparent.

"Most of these properties are cash, and that is a big amount of money to lose with such an uncertainty," said Fuchs.

That's why she's urging caution for both sellers and buyers in this process.

"Just do as much due diligence as you can. Call your local officials, property appraisers, and building departments, and just really try to protect yourself the best you can," said Fuchs. "More importantly, in all of that, be kind to your agents, be kind to the title reps, and everyone you talk to, because we are really all learning this."

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