Navigating Climate Risks in Real Estate: Tips for Resilient Homebuying
The rising frequency and severity of natural disasters are presenting fresh challenges within the realm of residential real estate. As articulated in a recent article by CoreLogic:
"As the looming specter of climate change casts its shadow, the world braces itself for unprecedented trials. In the real estate arena, one of these challenges pertains to the repercussions of natural calamities on property holdings, homeowners, and communities."
This explains why, according to Zillow, an increasing number of Americans are now factoring in climate risks and the potential impact of natural disasters when formulating their plans for homeownership (as detailed below):
This study further elucidates that climate risks are influencing the preferences of prospective homebuyers. They are keen on ascertaining whether the houses they desire are susceptible to issues such as flooding, extreme heat, and wildfires.
If you find yourself in a similar situation and are contemplating your next steps, here's essential information to consider as you embark on your home search.
Expert Guidance for Homebuyers in Mitigating Climate Risks: The foremost task is to comprehend the process of purchasing a home while keeping climate risks in mind. With the right guidance and resources, this journey can be streamlined.
The Mortgage Reports offers these recommendations for your next home purchase:
Assess climate risks: Before committing to a home, it is crucial to determine whether it is situated in a flood-prone area by consulting the FEMA website, scrutinize the seller's property disclosure for any historical damage, and enlist an inspection to identify issues like structural cracks and mold to ensure it's a sound investment.
Consider future preventive maintenance expenses: In regions prone to tropical storms, you may need to invest in hurricane shutters and sandbags for safeguarding the property. In wildfire-prone areas, evaluating options like clearing plants within a certain radius from the house, installing rooftop sprinklers, or acquiring gutter guards to reduce fire hazards is essential. Factor in these prospective expenditures when assessing homes that may require such enhancements.
Safeguard your assets: Securing the appropriate insurance coverage for a home in a high-risk climate zone is paramount. It is advisable to shop around and consult multiple insurance agents to compare prices and coverage options before making a bid on a home.
Above all, your most valuable resource throughout this process is a trustworthy real estate professional. They will prioritize your objectives while addressing your concerns. Even if they do not possess all the answers regarding your property's resilience to natural disasters, they can connect you with the appropriate experts and resources.
If you are contemplating homeownership while taking climate risks into account, rest assured that you are not alone. Your home represents a significant investment, and any potential impact on it warrants your consideration. Connect with a real estate expert you can rely on to guide you in finding your next home.