(Disclosure: I am an investor in Zeta.)
This time, finding a “tech-friendly” community is not the priority.
“We want our home to be something we hand over to our kids.”
Though Montana is not immune to climate change, the couple believes living there will be more sustainable.
In Cedar City, Utah, 29-year-old Elise Grant shares similar sentiments about the relationship between climate and homebuying.
Instead, they purchased a house one hour away, higher up in the mountains.
“We can’t see a long-term affordable future there.”
“I was concerned about drought, mudslides and fires,” says the 47-year-old.
“Not just the danger – but also the disruption to daily life and the extra environmental stress.”
Despite close family members living near the coast, she ultimately didn’t make the move.
says Lawrence Yun, chief economist with theNational Association of Realtors.
As a prospective buyer, it’s worth considering the ways climate change may threaten your purchase.
Here are some market insights that may help you make a more informed decision.
Sustainability: A new selling point
“Location, location, location.”
This real estate cliche about buyer priorities has the ring of truth.
Without it, a home’s price could suffer.
If you’re looking to buy in today’s market, this should give you pause.
This is one example of how insurance challenges are throwing an unexpected wrench in buyers' plans.
Tips for prospective buyers: Before making an offer, call a few insurance companies for a quick evaluation.
Though proximity to fire hydrants is a bonus, exterior construction is key.
Mortgages: Higher rates for some?
And the lenders are taking cues from the insurance companies.
If an insurance company won’t offer a policy over climate concerns, mortgage providers may follow suit.
Could an extreme weather event leave the borrower out of work?
What if the home is wrecked by a storm?
In theory, with the proper insurance, repairs are covered.
But what if an insurer drops a policyholder, as is already happening in some parts of the country?
As a prospective buyer, your risk tolerance will play a role in this calculation.
But they may do it sooner rather than later.
What climate-related damage has the area experienced in recent years?
As a prospective buyer concerned about climate risk, these are good questions.
“We’re focused on closing deals and making money.
[Realtors] don’t look forward or backward.
They look right there and then.
At the national level, lenders are required to disclose if a home is located in a flood zone.
“Brokers and agents are aware of this, but this isn’t part of a formal disclosure process.
Disclosure laws vary greatly,” says Foley.
it’s possible for you to also get a free climate risk assessment atClimateCheck.com.
Eventually, repeated bouts of severe weather will affect everything from mortgage interest rates to insurance premiums.
Press for answers and determine your risk tolerance.
