A recent publication by real estate experts reports an increase in real estate transactions in areas that were devastated by Hurricane Michael. The publication notes that during the first half of 2019 the market increased by 15.5%. That translates to over 2,000 homes sold in Bay County alone.
Who is buying these homes?
The biggest market appears to be families of construction workers who relocated to the area to help rebuild as well as renters who lost their homes during the storm.
Are there any concerns with this trend?
The trend could result in a jump in real estate prices in the area. Additional concerns specific to this area include:
- Title issues. It is possible former home owners hired out help in an attempt to rebuild their homes after the storm. If these home owners did not pay contractors, the contractors could have taken a lien out against the property. This can hinder the title and potential transfer to future owners. As such, buyers are wise to have a thorough title search completed before finalizing a real estate deal.
- Insufficient real estate documents. Real estate in this area may require special provisions that are not present within boilerplate, fill-in-the-blank type real estate documents. As such, it can be wise to have legal counsel draft real estate transaction documents that are specific to the purchase to help mitigate the risk of surprises after the deal is finalized.
Buyers who are aware of these issues and act to protect their interests can still make the most of the market.