When a natural disaster hits a community, we see the damage immediately. Homes are destroyed and families are displaced. In many cases, businesses close. People lose everything they spent years building.
Then comes the rebuilding, which takes time and effort. New construction and renovations start. Investors show up. Property values shift. Eventually, we start hearing that the neighborhood is “coming back.”
As real estate professionals we often have a front-row seat to all of it. We see homeowners weighing whether to rebuild or sell. We watch as the investors enter the market. We see how property values and housing costs change as recovery takes shape. In many cases, we’re also recovering because we, too, are a part of the affected community.
All of our experience in the industry — and as community residents — puts us in a position to ask an important question: Is the neighborhood coming back in a way that preserves the fabric of the community?
A tornado, flood, hurricane, or wildfire can force someone out of their home overnight, but it’s what happens when they are ready to return and rebuild that can be the cause of lasting obstacles.
Insurance may not cover everything and rebuilding may cost more than expected. It’s even possible that rent may increase. It’s not uncommon for developers to come in after a disaster and buy up damaged properties to remodel. That new development may change the housing costs in the neighborhood altogether. What looks like revitalization from the outside can feel very different to the people who lived there before the disaster and are trying to keep their homes.
It’s important as real estate professionals to keep those pressures in mind when people come to us for help. After a disaster is a time for us to lead with empathy and understanding and with the awareness the decisions homeowners make about whether to sell, rebuild or return can ultimately help determine who gets to remain part of the community.
Think about the homeowner who just lost half of their house. They’re dealing with a multitude of stressors like insurance, contractors, temporary housing, work, kids, and everything else life didn’t put on hold just because a disaster happened. Then someone comes along and offers cash for the property. All of a sudden, they’re presented a solution that means they won’t have to worry about repairs or timelines. They can get rid of the headache. When we stand in the shoes of the people experiencing the
Sometimes selling is absolutely the best decision. But as industry professionals, our job is to make sure people understand their options. What could their property be worth if they rebuild? What resources are available? Who can we connect them with? What does accepting that offer today mean for their financial future? It is our job to provide homeowners with the information that we have, and to connect them to other experts when what they need is outside our expertise.
That doesn’t mean we’re steering homeowners toward one decision or another. Instead, it means bringing the same market knowledge, local expertise and commitment to informed decision-making that we bring to any other transaction, while recognizing that this homeowner may be making that decision under extraordinary circumstances.
We don’t need to make the decision for them, but we do need to do our part to bring them the kind of customer service they deserve, which means giving them all the information they need to make sure they are equipped to the best decision for themselves.
A neighborhood doesn’t suddenly become valuable because developers and investors become interested in it after a disaster, even though in many cases, investment is what drives up the price. There was value there before, even if it doesn’t register as monetary. The families, businesses, traditions and history of a neighborhood are what give it a richness the deserves to be preserved when possible.
Real estate professionals know this particularly well because our understanding of a neighborhood isn’t limited to what a property sells for. We know the businesses, neighbors and histories that make communities places people want to call home. That perspective matters when rebuilding begins.
Investment can absolutely be part of rebuilding a community. Communities need resources and capital to recover, but there is a difference between investing in a community and taking advantage of a community while it is vulnerable.
We aren’t insurance adjusters, attorneys or disaster-relief experts, and we shouldn’t pretend to be any of these thing. But we are often the people homeowners call when they start asking, What do I do with my house now?
And our role doesn’t have to begin after the storm.
We can educate homeowners before disasters happen by answering the real estate questions they may face afterward. We can provide good market information when recovery begins and connect people with trusted resources to help homeowners understand their options. One such resource offered through the national association is the REALTORS® Relief Foundation, which provides housing-related assistance to disaster impacted communities.
We can also be mindful of what we’re seeing in the market, from sudden investor activity to changing housing costs, and what those shifts could mean for the people already living there.
Most importantly, we can remember that behind every damaged property is a person making a decision during one of the most stressful moments of their life.
Recovery shouldn’t only be measured by how many new homes get built or how quickly property values rebound. Did the people who called this community home before the disaster get the opportunity to come home afterward? Because rebuilding the neighborhood should mean doing what’s needed for the community.
Published by National Association of Realtors: https://ypn.realtor/the-lounge/when-disaster-changes-the-real-estate-market/?fbclid=IwY2xjawUiA2hleHRuA2FlbQIxMQBwZG9mAXNydGMGYXBwX2lkEDIyMjAzOTE3ODgyMDA4OTIAAR6l2nRPpDTvk6rQ8EXWiUnx9xVrhXogVAtm4GW5An7n0OntBD7y2du-SQkNcA_aem_w1qu7zmfyndkkbjUObd7yg
