WAVELAND - With her long blonde hair, rhinestone-studded sunglasses and electric blue suit, Chari Rapp cuts a striking figure as she cruises the ruined streets of Waveland in a sparkling white Jaguar luxury sedan.
Since Hurricane Katrina gutted her office building, rendered her rental properties uninhabitable and destroyed her listings, the real estate agent has been working out of the trunk of her instantly identifiable car with an unshakable faith that this devastated area will recover, and eventually grow bigger and better than before.
Real estate agent Chari Rapp works out of her Jaguar in Waveland. Click "play" to see some of the area properties up for sale and to hear Rapp talk about rebuilding Hancock County.
But it took the 20-year industry veteran nearly three months to close her first deal since the storm: the sale of a new three-bedroom home in nearby Diamondhead for $135,000 to a couple relocating there -- at least temporarily -- from a badly damaged section of Waveland.
The area’s real estate industry is slowly getting off its knees, with transactions being closed in trailers and sheds and deeds filed in one of the many mobile homes that are expected to serve as county offices for as long as several years.
Hancock County Chancery Clerk Tim Kellar said more than 700 transactions had closed since Sept. 9, when his office opened in temporary headquarters to begin recording warranty deeds – at least those that did not require title searches, which have been available only for the past month. The average rate of 100 deals a week is about one-third the level before the storm.
The very first deal to close was the sale of a 5-acre commercial property in Waveland to the Lowe’s hardware chain, which had the property under contract before the storm and plans to build a warehouse-style home improvement store on the site.
Buyers looking to higher ground
But most of the deals done since the storm have been for acreage north of Waveland and Bay St. Louis, with many buyers looking to build new houses on higher ground, Kellar said.
“A lot of people are real hesitant about buying anything except in the north end” of the county, he said. “So many folks who have lived down here forever, especially people with some age on ‘em, they are just saying, ‘I’m not going to go through it anymore.’”
Rapp agreed, saying most developers, investors and residential buyers so far are looking outside of the “flood plain,” the definition of which has expanded dramatically since Katrina.
For those who do not need immediate occupancy, there are plenty of partly or completely wrecked houses, commercial properties and debris piles to be had in the heavily damaged towns.
As Rapp gave a guided tour of her neighborhood in the Idlewood subdivision of Waveland, where the solid brick homes look almost undamaged from a distance, she stopped at one of her listed properties, a three-bedroom, two-bath house with a painted statue of the Virgin Mary out front.
Inside, the home has been gutted to the studs. Sheetrock has been ripped out from the floor to the four-foot water line, all the appliances are missing and a thick layer of dust covers the bathroom fixtures. Above the water line things are eerily intact, including a gaudy three-dimensional painting of a Spanish dancer, a brass chandelier in the entryway and a complete set of china in the upper cabinets. The house is being offered for $90,000 “as is,” compared to a value of about $130,000 before the storm, according to Rapp.
Daunting obstacles for buyers
Obstacles to buying a totally or partly wrecked home are daunting.
The vast majority of insurance claims are unsettled, making it difficult for would-be sellers to provide the repairs that are demanded by many bank underwriters. The lack of available contractors means it might be six months or a year before salvageable properties will be ready to inhabit.
No building permits are even being issued in the devastated “south of tracks” section of Waveland, and the two towns are only now settling new rules on building elevations. Preliminary federal flood maps published Friday also could play a role in building decisions.
And then there is the obstacle of uncertainty, another legacy of Katrina.
“That house right there – the “for sale” sign has gone up and down at least four times since the storm,” said Rapp. “That just goes to show you how undecided people are.”
For the few relatively undamaged homes available, prices seem to be holding at pre-Katrina levels. A two-bedroom house on Main Street in Bay St. Louis recently sold for about $400,000. A three-bedroom, two-bath craftsman-style house that took only 5 inches of water is on the market for $675,000 and has drawn interest, said agent John Harris of Latter & Blum.
Helene Giles, another agent at the brokerage, is about to close on a 1400-square-foot home in Waveland that was left undamaged by the storm, although it needs new flooring and a bathroom sink. The house, which is going for about $80,000 in a foreclosure sale, was under contract before the storm, but the prospective buyer, who lived in New Orleans, backed out of the deal and left the area.
Giles, 64, whose own house near the beach was destroyed by the hurricane, will be fully compensated through flood insurance and decided to snap up the foreclosed home, knowing it probably will be at least two years before she can rebuild on her former property.
Finding something livable
“The hardest thing is to find something that’s available right now -- that’s not gutted and that doesn’t need total renovation,” she said. “The prices are still the pre-Katrina prices, and maybe even a little bit higher if you can find something available. I don’t know what is going to happen in a couple of months. I think we’re going to see a lot of foreclosures.”
Commercial property also is in play throughout the Bay-Waveland area.
As Rapp drove her Jaguar down the main commercial drag of Highway 90, a small white helicopter swooped low and hovered over the giant shopping center parking lot that serves as the home of the New Waveland Café and Market -- a relief center that has offered thousands of free meals and supplies since the hurricane.
Rapp said it was a prospective buyer who has expressed interest in bulldozing the property and building a new shopping center, probably with a grocery store as the anchor tenant. The asking price is $3 million.
Another commercial property, a pile of wreckage that was once an upscale retail shop on the Bay St. Louis beachfront, is listed as “in contract” with an asking price of $565,000.
Harris said he has had inquiries from investors “all over the country” interested in picking up Bay St. Louis property on the cheap.
'Prices are going up'
“They think the prices have dropped,” he said. “But prices are going up, not going down.”
Harris is a real estate salesman and a promoter, but he is far from the only one who believes the towns will get back on their feet and return to their status as a great place to live, work, retire and enjoy the good life.
“This is a resilient community,” said Rapp, 50, vice president of the county port commission and a mother of two children, including a high school senior. “There is nowhere in the world that I would rather live than Hancock County.”
Like thousands of others in the county, she is living in a federally issued FEMA trailer, even though she probably could afford to rent a house elsewhere in the county while she rebuilds her life.
But if she moved to more comfortable quarters, “How am I going to feel what other people are feeling?” she asks. “How can my parents be in a trailer and me be in a house? I just can’t do it.”
An active member of the Word of Faith Christian Church in Waveland, Rapp expresses a pride that is typical of the area, saying she will rebuild her homes and business without taking on a mortgage -- and probably without much in the way of insurance money.
“This is the first time in the last 20 years that I have not been the helper, and it kills me,” she said. “I’m not a person to ask for help. That is probably the hardest thing for me to do.”
If Rapp does stay and rebuild, there will be a certain symmetry to it. She moved to the area in 1969 at the age of 14 when her father, a building contractor, came from the small town of Jackson, Ala., to help with the rebuilding after Hurricane Camille. The family fell in love with the area and has been here ever since.
“I cried when we left (Alabama), but I wouldn’t say it was more than a month (before) I didn’t want to go back,” she said. “And it looked just like you’re seeing it now.”
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Funny, as a person who happens to work as a Realtor, my clients all like me and I have rarely ever heard a negative word about the work I do on behalf of my clients. No, I am not perfect, and as a human, I have made mistakes, and will likely do so again in the future. It's so easy to generalize any population and say that all salesmen are sleazy, all lawyers are crooks, and all people from another state are narrow minded, etc.
My business has grown each year since starting in 1999, and my reputation precedes me as being honest, sincere, trustworthy and highly ethical. It's unfortunate that you have had contrary experiences. I will say that I have come across individuals on occasion that have shared your sentiment, which was largely due to having worked with a poor agent, (read - unethical, incompetent, etc), or have a friend or family member that had also had a lousy agent. I have also come across an agent or two that has left me concerned as well about their ethics and integrity. Show me a profession that does not have someone like that.
One additional note: I, as a Realtor, am not responsible for home price increases, and nor are my fellow Realtors in general. The drive of supply and demand determines the price of a home. In 1999 in the Austin, Texas metro area, there was a high demand for housing due to the tech industry leading growth in our area. In 2001/2002 when the tech bubble "burst" as the media was quick to highlight with gloom & doom scenarios, our housing market did indeed soften. It was crazy here for a while with out-of-state buyers moving in from their high priced states and cities and gladly paying cash for a home that would have easily cost them 3-6 times more where they came from originally. I doubt that you, as a seller, would have a dilemma about selling your home in a multiple offer scenario to the highest bidder, as long as it sold, appraised, and you made money of your likely greatest single investment - your home.
Finally, as a licensed professional, overseen by a county, state and national body of fellow professionals to ensure that I treat "ALL" of my past, current and future clients with the highest ethical concern and regard, gives me pride in the work I do and the reputation I have earned.
Don H. Johnson, Austin/Georgetown, TX (Sent Nov 21, 2005 2:03:26 PM)
Interesting, your camper has internet?
I live in a known distaster-proof area. They have good schools, plenty of jobs, and assistance programs for people like you.
Also, don't get onto the Real Estate agent too much. She has paid her dues to get to where she is, and is still defying the odds as a woman real estate agent in an area that has run amuck. Empower yourself, instead of plagiarizing every minority cliche in your posts.
Micah, Washington, DC (Sent Nov 21, 2005 2:08:17 PM)
Sincere thanks to all of those people that are as supportive as jon bennett in South Haven, Michigan. How is what happened to the gulf coast any different from people that live in California's earthquake country or middle America's tornado alley??? The sediment of some of your comments are disturbing because it almost seems like you think that we deserved this. What brought all of you to live where you do right now? It is more than likely because your family is from that area, your employment is in that area, and most importantly... that area is home to you. Instead of complaining about the fact that you are paying $0.20/gallon more for gas, think about the fact that people don't have a car to fill up, or a garage to put that car in.
Shawn , New Orleans, LA (Sent Nov 21, 2005 2:20:56 PM)
If it was not for these Real Estate Agents most of you would not own the homes you currently have. Also, most realtors are willing to charge a minimal and very fair fee to handle the paperwork of the deal for you if you happen to find make the sale/or purchase all by yourself (unlikely).
And for all of those who are commenting on this particular realtor's car and clothing...it's and old Jaguar and the suit is so 80's! Please don't tell me you are jealous of that.
Sarah, Napa Valley CA (Sent Nov 21, 2005 2:22:41 PM)
Don't rebuild, move. It's only a matter of time before this happens again. Building a city below sea level isn't the wisest choice.
Patrick Douglas, Minneapolis, MN (Sent Nov 21, 2005 2:54:50 PM)
I'm really sick of paying for people putting themselves in harm's way. I have no sympathy for the wealthy who build in the forests, on the beaches, etc. And the government -- which regulates everything that's allegedly bad and good for us -- should ban house trailers. They're a hazard wherever they are. If you can't afford to buy a house, get an apartment or condo with a foundation, preferably a basement.
Am I bitter? Yes. When I graduated from college, there were no jobs in my area, so I moved and moved again until I could finally come home to a good-paying job. Was it easy? No. Was it my preference? No. But I did what was was needed to earn my own way and I expect others to do likewise.
Miranda, Cleveland, Ohio (Sent Nov 21, 2005 3:02:59 PM)
Keep the faith. This too shall pass and your steadfastness, persistance and perseverance during such trying times will play a pivotal part in getting New Orleans back on its feet. I'm hopeful that, despite working out of your car, you will be able to get back to normal. (I love the Jag too but since my feet won't reach the pedals, I'd just as soon give you credit for your good taste and leave it at that).(smile) The Good lord wouldn't give you anything you couldn't handle. We both know that he surely could have given you something worse to work out of, of that one thing I am certain! You've worked harder than this before, out of worse places and for less money too. Work with what you have my friend and know that better days are coming, but it will take time. It is important to remember that the tea kettle, though up to it's neck in hot water...continues to sing. Best of luck to you
C. R. Kelley Smyrna, Delaware (Sent Nov 21, 2005 3:05:20 PM)
While I truly empathize with those who have suffered and are suffering as a result of the aftermath of Katrina...I wonder how Geralyn has both the means and the physical capacity to respond via a computer to an internet article...Hock your computer and use the money to wash your clothes at a laundry mat or purchase some material to fix your roof problems. As for the realtor...clearly an elitest who has no idea how the "common people" live.
Steve -- Melbourne, FL (Sent Nov 21, 2005 3:12:49 PM)
Real estate agents can not drive up prices of houses - only buyers can do that !
Dave - Atlanta, Georgia (Sent Nov 21, 2005 3:13:03 PM)
I have sold my last three homes privately without the "benefit" of a realtor. In the last case, three realtors suggested a listing price $12- $15,000 lower than the price I eventualy got (factor in the commission it would have cost me to list and I saved approx $25,000). Realtors care only for a quick sale, not in earning their commission.
zborecky, winnipeg, canada (Sent Nov 21, 2005 3:25:56 PM)
Wow, all of this over a real estate agent?
No other country in the world would allow this to happen. Because they don't have the standard of living we do. It is easy to rip into the government officials for their "response". Everyone seems to forget about the earthquake victims in India/Pakistan. They are geting NO/NONE/ZERO "quick" responses. People are walking out of the mountains CARRYING injured people. We live in the greatest country in the world. Too bad we are so unsatisfied due to all the commercials and other media that tell us we will only be "happy" when we have the latest fad item. Anyone remember "Tickle Me Elmo" for $500?
Thank you for the insight Geralyn. Before we all lose sight of the suffering, let's remember the greatest day for all of mankind is almost upon us. Let's celebrate the Birth of Jesus by giving generously to charities. I have "generosity-fatigue", too. But let's not stop.
Give what you can to a charity that is helping, not just getting rich by lending their name.
Al Roper Seattle, WA (Sent Nov 21, 2005 3:44:01 PM)
The minute I saw the picture that introduced this article I thought, "not a good idea, this is gonna tick some people off big time". Not because she has a car to get around in but right now the people in this hard hit area don't need to be reminded how much money a realestate person has made. Things were starting to roll on the coast and houses/property were moving, if you are in the business and you were dealing with the right people at the right time then there was money to be made. Well, that is neither here nor there right now. I just think her choice of words and the vehicle that she is working out of was a bad choice - maybe an SUV or truck would have been better (except they use too much gas - can't win on this one).
Lucy, Decatur, AL (Sent Nov 21, 2005 3:44:59 PM)
To anyone wanting information on what is happening on the Mississippi coast in regards to rebuilding - I would suggest you check out
www.mississippirebuilding.com.
The Sun Herald newspaper has a realty section included in each Sunday edition or you can check out www.realtor.com/gulfcoast. I spent several hours today with this "magazine" in front of me and checking out the multiple listing numbers on this website. Also check www.sunherald.com. It seems to me that the number of houses for sale are near what they were before storm, I mean you have plenty of choices (except for the Pass and the Bay/Waveland area) and I didn't think the prices were out of line. Diamondhead had some great buys and that is very convenient to the interstate and is north of coast. There is so much more to the coast than what you are hearing about being totally destroyed. People have homes and businesses where their roots are, many will rebuild right where they lost everything (we are) and some will either leave the state or choose to get off the immediate coast or bayous. We all have to make the decisions that are right for each individual.
Taylor, Long Beach (Sent Nov 21, 2005 4:13:20 PM)
I cannot wait for the real estate market to crash. I sold my house a couple months back for a huge profit. I think it is funny that people will actually pay what they are paying for homes. Exactly like the stock market bubble in the late 90s.
Bruce Travali (Sent Nov 21, 2005 4:44:25 PM)
I am stunned by the number of arm chair disaster experts and defenders of real estate agents in these posts. None if any that have ever experienced a real life disaster like a catergory 4 hurricane. For their solution to work everyone from Florida to Texas in the Gulf coast states and the entire eastern coast would have to relocate. Is disaster-proof Washington DC ready for that? Then you have to think about tornadoes,fires,floods,earthquakes,terrorist acts...... What happen to American's hearts?
Keith, Naples, Florida (Sent Nov 21, 2005 5:30:52 PM)
i cant beleive anyone would think about building any place near the gulf of mexico we are on a hurricane roll there will be more next year so good luck if u build i think all that land should be give back to the sea
jeff houser (Sent Nov 21, 2005 5:38:53 PM)
Understanding multiple major disasters have befallen this country (U. S. A.) and other states and countries around the world, and knowing there is a U. S. custom getting ready to happen Thursday of this week (Thanksgiving), wouldn't the better attitude be to show and tell thanks for being alive, for having some type of roof over your head (re: the HUGELY understated homeless population in this country), and for the chance to HAVE another chance? might be time for a 'values check'.
Jim (Sent Nov 21, 2005 5:41:21 PM)
I know a few realtors. They work harder than you can probably imagine. You would too, if you worked in a business that required you to spend over $30K a year, just to be able to be in that profession. And they do so ethically and honestly as well. I'm also going to point out that '$10,000 for a car ride' is a very myopic perspective. Putting a real estate transaction together and holding it together until it closes is no easy thing. BTW, Lloyd of Scottsdale, what do you do for a living?
Chaz Stevens, Seattle, WA (Sent Nov 21, 2005 6:07:17 PM)
I can't believe how negative so many of you are being. I definitely do not think it is appropriate for this woman to be driving all around these devasted areas in a Jag, but the attitudes of "i cant wait for the real estate market to crash" is absolutely ludacris. We need to keep this country strong through the tough times, not continue to weaken it.
Twin Cities, MN (Sent Nov 21, 2005 6:07:31 PM)
Speaking as a Realtor in the city of New Orleans I would like to apologize for the experiences that some of the previous posters have had with Realtors. I can only say that there are questionable examples of professionals in every profession - please don't tar us with the same brush - I take great pride in getting my clients what they need and taking on the burden of finding and managing their home sales. As for New Orleans - I wouldn't live anywere else and I have lived all over the world, I love this place. One quick comment about the negative posts, people this is America we have a reputation of working hard and slapping each other on the back to say well done. Lets be American and be proud. Oh and if you have not been here come on in its a wonderful place - just give us until Mardi Gras to clean up! The parades are on! Thanks!
Latter & Blum Realtor, New Orleans, LA (Sent Nov 21, 2005 6:08:56 PM)
I do agree with many of the comments made regarding this article. However, it is always unfair to generalize anything or anyone, we should all know this by now. As a real estate professional myself, I do not and would not drive a jag or any other high end vehicle in an area under those conditions. I would not drive a vehicle like that with the majority of my clients either. With a high end client, yes. I like to be on the same level as my clients. I am certainly no better or worse than any of them. I got into this business to help people and to make a living doing something I enjoy. Not to get rich. You will find people, good and bad, making not so good choices (to some of us) no matter the area, profession or conditions. I do find the picture in bad taste myself. However, it does not affect me or my profession directly. It only shows one person in a situation that is OK by her and the people promoting it. FREEDOM!
Shawn, Layton,Utah (Sent Nov 21, 2005 6:29:06 PM)
To all of you who are hollering how insane we, who are continuing to live in the Hurricane Katrina ravaged area are, let me put a question to you.
Should we also eliminate the entire state of Florida because of it's repeated hurricanes.
What about Los Angeles and it's earthquakes? Should we get rid of it?
As an earlier writer said, what about the tornado alley in the midwest? Shall we just do away with the entire midwest? And I could just go on and on, but I'm sure you get the idea by now.
What the world can really do without, is stupid people that open their mouth and offer opinions without having a clue of what they are talking about.
The hurricane prone areas of Mississippi and Lousiana, are no more dangerous, or costly to the American citizens and taxpayers, than hundreds of other places around the US that also have repeated natural disasters.
As for the person that did not know where Waveland is,I can tell you, it is one of the most beautiful and quaint spots on the entire Mississippi, Gulf of Mexico coast line.
I for one, plan to spend the rest of my alloted time on earth continuing to enjoy this wonderful community of Waveland/Bay St Louis, Mississippi.
Robert Royals
Robert Royals Waveland Mississippi (Sent Nov 21, 2005 6:36:01 PM)
Just what I'd want to see if my house and possessions were destroyed by a hurricane - a diamond-encrusted woman in a seemingly expensive suit driving a Jaguar. I fully support realtors selling land and trying to get things back to normal and getting people settled, but she could at least take into consideration that these people have nothing. Personally, I'd feel as if she was rubbing her wealth into my face. Tone it down a bit, lady.
Alison, Canton, MI (Sent Nov 21, 2005 6:57:37 PM)
While I certainly wouldn't "eliminate" the entire state of Florida, or Louisiana for that matter, I don't think it's unreasonable for people living in these high risk areas to apy insurance premiums that are appropriate to the level of risk.
That would certainly encourage homeowners and contractors to use building materials and method that have proven to withstand the affects of the weather in the area.
We, in the midwest have our share of nasty weather but pay dearly through our insurance premiums for living in areas designated as flood plains, high crime areas, etc. That's only fair.
Our taxe dollars should not go to the repeated re-building of the same flimsy housing stock in these areas.
P Wallace Detroit, MI (Sent Nov 22, 2005 10:21:24 AM)
1) Bill, I've been to Somerset, a 200k home there sells for 350+ in many places. Don't speak about what you don't understand. That same 200k home goes for 600k in California. 2) Dan C realtors work on commission. Do the math. 3% ( maybe even less) on 200k, that's 6k. Can an agent drive that price up more than 10k and still get the other side to buy, no. People will figure out that it's over priced. so that 10k is worth $300 to the agent. NO ONE is wasting their time over $300, as a part of 6k pre tax. The investors are who drove prices up, trying to make quick cash flipping properties. Your ignorance flows like a river.
Brian (Sent Nov 22, 2005 10:22:50 AM)
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