In the aftermath of Hurricane Helene, FEMA buyouts are under scrutiny. While these offers purport to provide relief, homeowners must evaluate the details critically to ensure fair treatment.
Key considerations for homeowners
1. Pre-storm valuations:
FEMA claims to base buyouts on pre-disaster values, but are these values fair? Tax assessments, often outdated and lower than market value, should never be used as a market valuation. Consulting a local REALTOR® or a certified residential appraiser is crucial for an accurate assessment.
Why are these values outdated in so many instances? North Carolina only requires a re-valuation once every eight years, although counties can choose to revalue more frequently. Consider the changes to the real estate markets and values just in the past four years. It doesn’t take much time for an old tax value to be not just outdated, but not even remotely close.
I’d be remiss not to mention that online algorithms are also not the best resource for property values. Bear in mind that the views from a location, the access to water, upgrades, general condition all have a huge impact on numbers and are items that can not be taken into account by a computer anywhere.
2. Inconsistent assistance: Many families have had their applications for assistance from FEMA denied. Others have received some approvals, but it’s not nearly enough to get started again. When the assistance applications are denied at a time of crisis, it can feel hopeless —which may mean taxpayers are left feeling that a buyout remains the only solution. Desperation caused by a natural disaster shouldn’t force homeowners into selling.
Informed decisions are essential
An example, one of many, that I can reference for why it’s important to make informed decisions on these matters involves a young couple. They had been living in an inherited house prior to Helene. It was paid off, no mortgage — a great way to get started in life. After the storm, with the house gone and no savings to speak of, they applied to FEMA for help. Their $750 was turned down for “lack of receipts,” their application for assistance on the house was denied with no explanation.
They have appealed and were told (kindly, in their description) that there’s no way to know when or if the appeal will be heard. They did tell me that on day two after Helene — DAY TWO — they were approached by FEMA workers (identified by the logo on the jackets) with a buyout offer. What they said to me was that “…they had no intention of taking ANY offer but what else could they do?”
My response was to pray with them and seek an attorney who could advocate for them. In fact, I’d love if I had a whole list of North Carolina property rights attorneys on my bench who could swing into action for people like this. It should always be their decision as to what they do, but I don’t want to see people making desperation decisions that can never be reversed.
For homeowners considering a buyout:
- Insist on a certified residential appraisal to validate FEMA’s offer (by an appraiser of YOUR choosing, who knows YOUR zip code personally).
- Seek local expertise to ensure fair valuation, especially for unique properties like waterfront or mountain view homes.
- Know your rights under the Fifth Amendment.
North Carolina’s leaders must advocate for transparency and fairness, ensuring citizens are informed and empowered. FEMA’s programs must prioritize clarity and dignity, not pressure. Every North Carolinian should be saying ENOUGH to the poor handling of this crisis. Put North Carolinians first and do it NOW. No one should have to sell their property because of a crisis. They should be made whole.