Money Flow
In the wake of a hurricane like Hurricane Milton, several professions suffer significant financial setbacks, while others experience a surge in . Those industries that rely heavily on physical infrastructure or discretionary spending are often hit the hardest. Here are five professions typically financially hurt by a hurricane’s direct impact:
1. Retail Store Owners: Physical stores often suffer from extensive damage, leading to closures and significant revenue loss due to reduced foot traffic.
2. Restaurant Owners: Power outages, structural damage, and supply chain disruptions lead to closures and financial strain.
3. Real Estate Agents: The housing market slows as potential buyers avoid damaged properties and high-risk areas.
4. Tourism Operators: Hotels, attractions, and travel services see cancellations and a steep decline in visitors.
5. Business Owners (Non-Essential Services): Owners of businesses like salons, gyms, and entertainment venues face extended closures, property damage, and reduced customer activity as locals focus on essential needs.
Conversely, certain professions benefit from the aftermath of a hurricane:
1. Roofers: Increased demand for roof repairs following storm damage.
2. Carpenters: The need for rebuilding homes and structures drives up demand for carpentry services.
3. Tree Removal Services: Fallen trees and storm debris create a spike in demand for tree removal.
4. Disaster Cleanup Crews: Cleanup teams are essential for clearing flood damage and debris.
5. Home Repair Contractors: General contractors see increased business as homes and buildings require extensive repairs or renovations.
Now, let’s extrapolate these basic facts to consider how one might adjust a portfolio in anticipation of hurricane-related risks and opportunities. Investors could reduce exposure to industries vulnerable to storm damage, such as retail, restaurants, and tourism, in regions prone to hurricanes. Shifting a portion of a portfolio toward companies that benefit from disaster recovery—like roofing, construction, tree removal, and disaster cleanup services—could be a strategic move.
Additionally, investing in utility or construction companies that focus on infrastructure repair and rebuilding after natural disasters could provide a strong return in hurricane-prone areas. Real estate investments may also shift toward safer, inland regions, or companies specializing in flood-resistant construction materials and technologies. Diversifying in this way helps hedge against the financial risks associated with hurricanes while tapping into the recovery-related opportunities.
In the wake of a hurricane like Hurricane Milton, the housing market often faces substantial disruptions. Property values may plummet, and prospective buyers or sellers must act quickly due to damage or fear of future storms. In this volatile environment, having a non-commission real estate agent can offer distinct advantages.
1. Cost Savings in a Depressed Market
In a hurricane-affected area, property values tend to decrease sharply as demand dwindles. Traditional real estate agents who work on commission may take a sizable portion of the selling price, which could be a significant hit for homeowners already facing financial hardship from storm damage. A non-commission realtor, by contrast, typically charges a flat fee or an hourly rate, which can be more affordable and predictable in a market where every dollar counts.
Example: A property valued at $5,000,000 pre-hurricane might drop to $4,000,000. With a 6% commission, a traditional realtor could take $240,000, while a non-commissioned realtor would charge a set fee, allowing sellers to retain more of the proceeds, which is crucial when funds are needed for rebuilding or relocation.
2. Faster Transactions in Urgent Situations
When moving quickly becomes a priority—whether due to unsafe living conditions or economic pressures—a non-commission realtor is incentivized to work efficiently. Unlike commission-based agents who may focus on securing higher sale prices (which can delay sales), a non-commission agent is more focused on completing the transaction quickly because their income isn’t tied to the sale price. This efficiency can be particularly valuable when sellers or buyers need to make swift decisions, especially in an uncertain market.
Example: Families displaced by a hurricane may need to sell their homes quickly to secure funds for relocation. A non-commission agent can prioritize getting the deal done rather than negotiating for incremental gains that might prolong the process.
3. Reduced Conflict of Interest
A non-commission realtor is less likely to have conflicting motivations tied to the sale price. In hurricane-affected areas where properties might sell for below pre-storm values, sellers may feel pressure from commission-based agents to hold out for a higher price to boost their commission, even when it’s not in their best interest. A non-commission realtor, however, can offer advice more aligned with the client’s immediate needs, like moving quickly to avoid further financial loss.
4. Support for Buyers in a Depressed Market
For buyers, a non-commission realtor can also be beneficial. In a market where prices are depressed due to hurricane damage, buyers may have more opportunities to purchase property at lower costs. A non-commission agent can focus on helping the buyer find the best deal without being motivated by a higher sale price that would increase their commission. This can create a more buyer-friendly experience, especially for those looking for affordable housing options post-storm.
Example: A buyer seeking to purchase a home in a hurricane-impacted area might prioritize finding a deal quickly before repairs drive prices back up. A non-commission realtor can assist in securing a property without pressure to increase the offer for the sake of a commission.
5. Greater Flexibility for Distressed Sellers
Sellers dealing with extensive damage to their property may feel overwhelmed by repair costs, insurance claims, and other financial pressures. A non-commission realtor provides flexibility, as they can offer services tailored to specific needs—whether that’s just listing the property or providing more comprehensive assistance without the fear of high commission fees eating into already reduced profits.
In conclusion, non-commission realtors offer significant advantages in hurricane-impacted markets, where prices may be depressed and quick transactions are often necessary. Their cost-effective, efficient, and customer-focused model can provide sellers and buyers with much-needed flexibility and financial relief during challenging times. For investors, this model also opens up opportunities to acquire properties in a volatile market without unnecessary delays or inflated costs.