The REAL rules can potentially impact the sale of your home in several ways. Below is a list of some factors to consider:

  1. Mandatory Disclosure: Since March 2024, you must disclose if your property is in a FEMA flood zone and reveal any past flood or water damage, including the date, extent, and repairs.
  2. Stricter Building Standards: The REAL rules require new or “substantially improved” homes (those with costs of repairs exceeding 50% of the market value) to be elevated four feet above the base flood elevation. If your home requires significant renovations to sell, these costs may be higher.
  3. Buyer Scrutiny & Value: Homes in coastal areas may face, from, or need, higher insurance premiums. Conversely, already elevated or compliant homes may be more attractive to buyers looking for “future-ready” properties.
  4. Development Limitations: The rules impose stricter standards on development in coastal inundation zones, which could affect the marketability of vacant land or the ability to expand existing homes.
  5. Timing: Projects with applications deemed complete within 180 days of the rules’ effective date (by roughly July 20, 2026) may be exempt from the strictest new requirements.
  6. Compliance: Homes made compliant with the REAL rules will present a buyer. There’s an opportunity to purchase a home that is already compliant with the floodplain regulations.