This past year has seen a large number of changes in our global and local economies, but few have been more surprising than the explosion of the housing market. The number of available homes currently on the real estate market has plummeted to record lows as people are snatching up new construction homes, preexisting homes, and fixer-uppers in record numbers across Texas. However, a purchase as important as a new home requires significant research and time to evaluate risk factors. In today's Aegis blog post, we discuss some of the most important areas to research before buying a home, and the financial implications of buying a home in today's busy market.
Evaluating Nearby Growth and Construction
All home searches begin with two main search criteria, the price and the location. As individuals and families look for homes in their budget, they're also usually looking at neighborhoods or subdivisions for very specific reasons, such as a closer proximity to work, good schools, or nearby amenities or scenery. It's also just as critical to research future growth or expansions that could impact life in a new neighborhood such as roadway construction, new shopping centers and community amenities, apartment complexes, fire stations, or manufacturing plants. Without thorough research, new homeowners could discover too late that future construction will likely lead to a drop in home values and an increase in traffic or noise pollution.
Flood Elevation and Other Risks
When assessing the current home market, another critical factor to consider is the risk of flooding and a home's proximity to major reservoirs or drainage basins. In the last several years, Texas has experienced a number of record-breaking flood events at various times of the year, and their increase in frequency has made potential homebuyers cautious when evaluating neighborhoods. When researching available homes, take the time to investigate how the community has fared during the last several floods, and if improvements have been made to improve storm drainage and reduce flood risks. In addition, consider area crime reports as well as other community concerns such as nearby street racing, vandalism, or driveway theft.
Tax Implications and Other Expenses
Finally, even if a potential homebuyer is able to find a home they love in an ideal neighborhood, there are also tax implications to consider such as county taxes, school district taxes, and MUD or water district taxes. These rates can vary significantly by county and city, so it's important to evaluate the differences. In addition, homebuyers need to consider that their current home might be sold long before they find an ideal new home to move to, so they might have to find short-term leasing options or rent their own home back until they can find a new home. Also, rates for Homeowners Insurance might change significantly if there is a big change in home size or personal property, so this will also need to be considered when creating a budget for a new home purchase.
Buying a home can be an exciting process, but it's essential to do thorough research to ensure the home meets all of your needs and is a purchase you'll be happy with for years to come. At Aegis Insurance & Financial Services, we're committed to helping clients get the comprehensive Homeowners Insurance coverage they need to protect their new home and personal property while also providing financial peace of mind. Contact Aegis today about our full range of Personal Insurance policies at 713-850-7622 or fill out our online form to request a free quote!