Buyers Often Overlook Insurance Costs

first-time buyer
Nesbitt Realty helps first-time home-buyers realize their home-buying dreams.
Insurance is usually the last thing people worry about when they are buying a new home. According to the Insurance Information Institute, that's a mistake, because it will be an expense a buyer will have as long as they own the property. Here are some key issues that the institute urges every buyer to consider:
  • What is the condition of the plumbing and electrical systems? Older and poorly maintained systems cost more to insure.
  • How far is the home from the fire department? A location close to the station usually means lower insurance costs.
  • Does the property meet current building codes? Up-to-date properties are safer and also cheaper to insure.
  • What about wind damage? If insurance against windstorms is required, is private insurance available or will the buyer have to rely on a state-run program? If there a windstorm deductible, how high is it?
  • Is the home vulnerable to flooding? Floods aren’t covered under a standard homeowner policy, although most major insurers will provide it through the National Flood Insurance program. How much the insurance costs depends on where the property is. More information is available at FloodSmart.gov.
  • Is there earthquake risk? Earthquake insurance requires an endorsement or a separate policy.

What is an ABR?

ABR is short for Accredited Buyer Representative. The Accredited Buyer’s Representative (ABR®) designation is designed for real estate buyer agents who focus on working directly with buyer-clients. Accredited Buyer’s RepresentativeWhen you work with an Accredited Buyer's Representative you know that your rights are represented by a professional agent who is trained and experienced in handling the needs of buyers. There are four requirements which a real estate agent must meet to attain and use the ABR® designation:
  1. Previous and documented experience representing the needs of buyers and experience actually closing real estate sales.
  2. Successful completion the Accredited Buyer’s Representative (ABR®) Designation Course.
  3. Successful completion of one of the ABR® elective courses.
  4. Membership in good standing in the Real Estate Buyer’s Agent Council (REBAC) and the National Association of REALTORS®.
Learn more about the advantages of working with a Nesbitt Realty buyer's agent
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