Climate change is becoming a significant factor in homebuying decisions. According to the National Association of Realtors (NAR):
“Sixty-three percent of people who have moved since the pandemic began say they believe climate change is—or will be—an issue in the place they currently live.”
If you're planning to move, it's essential to consider how climate change might impact your new home. A recent study by Realtor.com highlights the increasing influence of climate change on real estate (see below):
Ensuring Your Investment is Safe
To safeguard your investment from climate-related risks, start by working with a local real estate agent. They can help you understand the potential hazards—such as wind, floods, and wildfires—that may affect your future home. Their local knowledge is invaluable in assessing these risks.
Factors to Consider: Home Quality and Insurance
A Home Built to Last
If you intend to stay in your new home for many years, ensure it is built to withstand environmental hazards. Collaborate with your real estate agent to verify that the home incorporates resilient building and remodeling techniques. This might include features like a secondary water barrier on the roof or fire-resistant exterior walls.
If the home lacks these features, your agent can help you negotiate necessary upgrades or determine what renovations might be needed in the future.
Insurance to Protect It
Once you’re confident in the home's construction, the next step is securing appropriate insurance. Selma Hepp, Chief Economist at CoreLogic, notes:
“Homeowners are going to become increasingly more aware of risks of living in some areas as it becomes prohibitively expensive or very difficult to obtain hazard insurance.”
In regions where climate risks are prominent, having the right insurance is crucial. The cost of insurance should be a key consideration in your budget. Obtain insurance quotes early in the process to compare rates, as it can take several weeks to receive them.
Navigating the Homebuying Process
While these considerations might seem overwhelming, a real estate agent can guide you through every step. They are your go-to resource for understanding the homebuying process, assessing potential risks, and navigating the impacts of climate change on your investment. With careful planning and expert advice, you can find a home that meets your needs and stands the test of time.
Climate change is a critical factor in homebuying. Your home is a significant investment, and it's important to be prepared for any potential impacts. Consult with a local real estate agent to help you find the perfect home that is both safe and suitable for your needs.
Comments