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In the wake of natural disasters like Hurricane Helene, many North Carolina residents are working hard to recover and rebuild. Unfortunately, this period also presents an opportunity for fraudsters looking to take advantage of vulnerable homeowners.
As a real estate agent, you are in a unique position to help your clients navigate the recovery process and ensure they avoid becoming victims of fraud. Here’s how you can support them during this challenging time.
Educate Clients About Common Scams
After a disaster like Hurricane Helene, fraud schemes often increase. Some of the most common scams include fraudulent contractors, fake FEMA representatives, and deceptive insurance adjusters. By educating your clients about these potential risks, you can empower them to recognize red flags. Here are some tips to share:
Beware of contractors who ask for full payment upfront or who refuse to sign a written contract.
Verify the credentials of contractors through the North Carolina Licensing Board for General Contractors (NCLBGC) to ensure they are licensed and in good standing.
Ask for identification from anyone claiming to be a FEMA inspector or an insurance adjuster and verify their identity through FEMA or the insurance company before allowing access to the property.
Verify Contractor Credentials
In North Carolina, any contractor working on projects costing $40,000 or more must be licensed through the NCLBGC. As a real estate agent, you can assist your clients by verifying that the contractors they are considering have a valid license. The NCLBGC offers an online verification tool that makes it easy to check a contractor’s license status. If a contractor is unlicensed or unwilling to provide proof of their credentials, it is a major red flag.
Additionally, remind clients to avoid contractors who:
Solicit door-to-door without references or business cards.
Offer unusually low bids that seem too good to be true.
Demand large deposits or cash-only payments.
Encourage Written Contracts for All Work
A written contract is essential for any home repairs or reconstruction work. It should include a detailed description of the work, the materials to be used, the start and completion dates, and the total cost. As a real estate agent, you can help your clients understand the importance of these contracts and recommend that they never sign a blank or incomplete contract. If the client is unsure about the terms, suggest that they seek legal advice before signing.
Advise Clients on How to Report Fraud
If your clients encounter suspected fraud or scams, it’s important that they know how to report these incidents. Here are a few steps they can take:
Contact the NCLBGC if they believe a contractor is operating without a license or engaging in unethical behavior.
Report suspicious activity to FEMA at the Disaster Fraud Hotline: 1-866-720-5721.
Reach out to the North Carolina Attorney General’s Office to report price gouging or other consumer complaints related to the disaster.
Providing your clients with these resources can help them feel more secure in their interactions with contractors and other professionals during the recovery process.
Be a Trusted Resource for Reliable Referrals
In times of uncertainty, many homeowners look to real estate agents for recommendations. By building a network of trusted, licensed contractors, inspectors, and other professionals, you can provide your clients with referrals to reliable service providers. When offering a referral, emphasize that your client should still conduct their own research and verify the professional’s credentials.
Stay Informed About FEMA Disaster Assistance
Many North Carolina residents may be eligible for FEMA assistance following Hurricane Helene, which could help them with temporary housing, repairs, or other recovery expenses. As a real estate agent, staying informed about the FEMA assistance process allows you to guide clients through their applications and help them avoid individuals or businesses that might exploit them during this time.
Remind clients that:
FEMA does not charge for disaster assistance or for help with the application process.
FEMA inspectors do not collect fees and will always carry official identification.
If they have any doubts about the legitimacy of a FEMA representative, they can contact the FEMA Helpline to verify.
In the aftermath of Hurricane Helene, real estate agents in North Carolina have a critical role to play in supporting their communities. By educating clients about potential fraud risks, verifying contractor credentials, and offering guidance throughout the recovery process, you can help ensure they rebuild safely and securely. When agents and homeowners work together, it makes for a stronger, more resilient recovery for everyone.
How else can we support our clients during this challenging time? Let us know in the comments or share with a colleague in an upcoming CE class.
References FEMA. (2024). Beware of Fraud Fact Sheet.
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The article highlights the important role real estate agents play in protecting their clients from fraud, especially following natural disasters like Hurricane Helene. I can relate to the value of working with trustworthy professionals in complex situations. When I needed help navigating property transactions, using services like this made all the difference in ensuring a secure process. It's essential to collaborate with those who are experienced in the field to safeguard both buyers and sellers in turbulent times.