Yesterday, I was showing property to a prospective buyer. The price of $499,000 was not the issue. Their main concerns were the taxes and insurance.
Taxes will go up when the property is sold, but probably not at the full sold price. The insurance, however, is another matter.
The buyer is a contractor and said his insurance has quadrupled this year. His insurance on a home in Port Charlotte built in 1978 with about 1300 sf under air is only $400 lower than a home he is building for a customer valued at nearly a million. He has talked to nine insurance agents, and most of them don't even want to insure him. He says the agents tell him that the companies are trying to drop homes built before 2002 and add the new ones. The list of agents who will insure an older home is growing ever shorter.
I gave him a list of three agents that are still writing older homes in the area. One you may not have used is Florida Farm Bureau. In Charlotte or Sarasota County, it's $40 to be a Farm Bureau member and apply for the insurance. The site lists all the types of insurance they write and the agents in that county. Maybe he will have some luck with them. Just in case you haven't checked in your area, I understand AAA is also writing homeowner's insurance for newer homes.
All the big insurance companies are only keeping their old customers or insuring new homes in this area. Is insurance a big issue in other states as well, or is it just here because of the hurricanes?