Two months after Hurricanes Helene and Milton wreaked havoc across Tampa Bay, the cleanup and recovery efforts remain in their early stages. As some homeowners decide to sell their storm-damaged properties as-is, prospective buyers are being urged to approach such deals with caution.

Bay Area realtor Ashley Stout-Fuchs stresses the importance of verifying a property’s status with local officials and FEMA before making a purchase.

“It might look like an easy fix-and-flip opportunity for an investor,” said Stout-Fuchs, recalling a recent case where one of her clients nearly purchased a hurricane-damaged home in Crystal River.

RELATED: More Flooded Homes Hit the Market ‘As-Is’ Following Recent Hurricanes

Despite conducting standard due diligence, including title searches and consultations with contractors, electricians, and plumbers, the transaction hit a major roadblock.

“Right before closing, my client contacted Citrus County’s Building Department to confirm his contractor license was ready,” said Fuchs. “That’s when the county informed him via email that the property had been red-flagged by FEMA for substantial damage.”

RELATED: How to Sell a Storm-Damaged Home When You Can’t Afford to Make the Repairs Because of the FEMA 50% Rule

This designation meant the home would require demolition, relocation, or elevation to comply with FEMA regulations.

The FEMA notice, dated November 27, arrived well after the sale process had begun, catching both the buyer and the seller off guard. The deal ultimately fell through.

Fuchs believes this scenario could be repeated across the region, as many hurricane-damaged properties currently on the market may not have clear assessments regarding their repairability.

“A lot of these homes are being marketed as ‘investor’s dream’ or ‘fix-and-flip’ opportunities, but even the agents and sellers might not know the full extent of the damage or what FEMA has flagged,” she said.

A quick search on real estate platforms like Zillow reveals numerous hurricane-damaged properties listed for sale. Some listings are transparent, stating that the home is being sold for land value only, while others provide little to no information about FEMA’s 50% rule—a regulation that limits the repair costs of substantially damaged homes to no more than half of their market value.

RELATED: FL Lawmaker Seeks Change of FEMA 50% Rule

“Most of these transactions are cash deals, which means there’s significant financial risk involved when uncertainties like these exist,” said Fuchs.

She advises both buyers and sellers to take extra precautions.

“Do as much due diligence as you can. Reach out to local officials, property appraisers, and building departments to gather all necessary information,” said Fuchs. “And remember, everyone in this process—agents, title reps, and other professionals—is navigating this complex situation together. Kindness and patience go a long way.”

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(Image credit: Christie’s Real Estate)