When you buy a house in Pittsburgh, you are typically required to put a 10% to 20% down payment on the home. This is common and should not come as a surprise to anyone looking to purchase a Pittsburgh house. In a typical real estate market, the value of a home will rise, and the owner of the house will make money on the sale of the house above the amount of their down payment. On the other hand, what if the value of the Pittsburgh house decreases? Is there a way to protect the value of a home in a down market? This is the purpose of home equity insurance.
What Is Pittsburgh Home Equity Insurance?
Home equity insurance is an insurance that covers the homeowner’s potential loss when selling your house in Pittsburgh-PA. The possibility of a loss on the sale of your home can be a major driving factor for home owners. Home equity insurance provides peace of mind for those who believe that they could possibly take a loss on their home when they decide to sell it. Based on that fact, if you never plan to sell my house Pittsburgh-PA, home equity insurance is not for you.
Will You Ever Sell?
For those who plan to eventually sell their house in Pittsburgh, home equity insurance may be the right direction to go. The Pittsburgh housing market can be unpredictable at best and just like the current coronavirus outbreak it is impossible to predict. You never know when the Pittsburgh real estate market will drop and home values will plummet, much like they have in the past few years. Pittsburgh Homeowners trying to sell their house in Pittsburgh-PA recently, because of economic circumstance such as the loss of a job, have had to cut prices drastically to compete with the foreclosures. These people will generally take a monstrous loss on their homes unless they had previously bought home equity insurance.
Young home owners have a good reason for purchasing home equity insurance. The likelihood that a young homeowner will sell is much higher than an older one. Many times, younger homeowners will purchase a house in a depressed neighborhood where prices are either stagnant or dropping because that is all they can afford at the time. Even if they plan on moving within a few years, their home could be worth significantly less then what they bought it for.
Determining The Value of Having It
In order to determine whether or not to purchase Pittsburgh home equity insurance you will need to compare the cumulative cost of the insurance to the projected loss on the home. If the projected loss on the home is more than the cumulative cost of the insurance, then you should buy it. It can be hard determining a projected loss on your home’s value. It is an educated shot in the dark. Therefore this type of insurance exists to provide some feeling of security for an unknown future.
In today’s economy, Pittsburgh homeowners cannot be too cautious when it comes to protecting the value of their investment. It is impossible to know what the future holds and it’s always better to be safe then sorry. Many local Pittsburgh insurance companies offer this type of insurance contact them for a free quote!