If you’re wondering how insurance companies can stay in business after major natural disasters, there’s a centuries-old strategy they have for mitigating losses called reinsurance. Reinsurance is, in simple terms, insurance that insurance companies buy for themselves to protect their assets against unforeseen or extraordinary losses. 

It’s unknown when and where a wildfire, tornado, or hurricane will devastate homes, buildings, vehicles, livestock, and landscapes, so the primary or ceding insurance company (the one that issues you your home’s hazard insurance) pays for a premium with a reinsurance company (also known as an assuming insurer) to indemnify the primary insurer against part or all of the losses it may incur, as per the reinsurance agreement.

The purpose of reinsurance is multi-fold. Not only does it help primary insurance companies control their risks, it also helps them maintain their financial stability and grow their business.

As a home seller, you have three goals—to sell your home for the highest sum in the shortest time with the least effort. But if you make either of the following mistakes, your home will take longer to sell and for less money. 

1. You may decide on the FSBO (for sale by owner) route to avoid paying real estate professional fees, but you’ll attract bargain-hunters and house-flippers who also want to shave off agent fees by dealing directly with the seller. FSBOs are notorious for “testing the market” at too-high prices and making the fewest repairs and improvements.
2. Or, you may list your home with a professional, but refuse to follow their advice by pricing your home too high or declining to get your home in market-ready pristine condition.

Your Berkshire Hathaway HomeServices network professional offers a worldwide network of colleagues and qualified homebuyers. Their data helps you prepare your home to appeal to today’s homebuyers and list it for the best price and quickest sale possible.

Reach out to Your Forever Agent^® today for a consultation.

Old homes in need of lots of repairs can often be spooky—but that doesn’t mean they’re haunted. A spooky home may only need work, not an exorcism. If you’re open to it, you could end up with more space and features at a bargain price.

Older homes needing work tend to sell at an attractive discount. Even if you feel like you’ve walked into a time capsule where you don’t belong, the age and condition of the home matter little if you renovate it in a financially feasible way.

The other option is demolition and building a new home. Talk to your lender and see if the price of the home and the cost of renovations or building new are affordable.

Just don’t over-improve for the neighborhood. Your benchmark will be nearby, similar homes that have either renovated or rebuilt to modern homebuyers’ standards.

So, don’t be spooked by a dark, spooky home. It may only need a new electrical panel, new lights, new windows, and some tree-trimming.