Rising homeowners insurance premiums are changing how buyers and sellers negotiate. Learn what to expect and how to protect your next real estate move.

Homeowners' insurance costs are rising faster than expected, impacting the real estate market. Across the country, we're seeing deals fall apart not because of price but because of insurance surprises. If you plan to buy or sell a home, understanding this shift is critical to protecting your transaction and maximizing your results. Here's what you need to know:

Buyers' budgets are getting tighter. In many areas, premiums are up hundreds of dollars per month. That added monthly cost affects buyers' overall budget and can even push them out of price ranges they were previously approved for. A home that once seemed affordable may no longer fit into the monthly payment when insurance is factored in.

“Homeowners insurance is no longer a background cost—it’s a deal-shaper in today’s real estate market.”

Sellers are seeing more pushback. As buyers become more cost-conscious, they're factoring insurance costs into their offers. In high-risk zones like floodplains, coastal areas, or wildfire zones, homes may sit longer or face more negotiations. Some deals even fall apart late in escrow when insurance quotes come back higher than expected.

Market confidence is shifting. These challenges are creating hesitation. Some buyers are hitting pause on their search, while sellers are wondering whether now is the right time to list. The truth is that success today requires preparation and strategy, not panic.

So, what should buyers and sellers do? Here’s what I recommend: 

For buyers, shop around early. Insurance quotes can vary widely. Bundling policies can often lower premiums. Get a quote before you fall in love with a home to avoid unpleasant surprises.

For sellers, you need to be proactive. Obtain an insurance estimate to share with buyers. Highlight upgrades like a new roof or fire-resistant materials that could lower premiums. Most importantly, work with an agent who understands how to position your home effectively in this new landscape.

Insurance is no longer a background cost; it's shaping the real estate deal itself. But with the right strategy, you can still buy or sell successfully. If you have questions or want to create a smart strategy for today's market, I'm here to help.