Buying a new home is very exciting event and likely one of your biggest financial investments.
Before you buy your home, consider if the home needs repairs, or is a higher insurance risk. You may be able to negotiate a lower purchase price, based on anticipated expenses.
For example, some things to consider are…
Older homes with aluminum, or knob and tube wiring could be considered a fire risk and can increase your insurance rates and a home with oil heating can be an environmental liability risk.
Both of these things can be updated but they may be expensive and should be factored into your final costs.
Another consideration is whether the home you want to purchase has a history of water damage. Certain areas are known for flooding and sewer back-ups which could increase your insurance rates, so you may want to adjust the purchase price accordingly.
Before you make your final decision, be aware and ask questions, what you learn could help you save money and ensure you pay the right price for your home.
Article provided by RBC Insurance