5 things to think through before you make an offer on a home

Are you hoping to buy a new home in BC this year? Buying a home is truly exciting and, for the majority of us, it’s the biggest financial decision we’ll ever make. Most home buyers tend to focus on the listing price and dreaming of life in the new space. The smartest buyers look a little deeper before making their offer, and thoroughly research the home, property, neighbourhood and community location. When you understand a home’s condition, risks, location and insurance needs early on, you can help protect your investment and prevent costly surprises.

So, before you make your offer (and well before you sign on the dotted line), here are five key things to consider when buying a new place:

1. Condition matters more than looks

When you go to a showing, the fresh paint, new countertop and stylish furniture & lights always catch your eye. But these are cosmetic upgrades that don’t always reflect what’s behind the walls. You should always get a professional home inspection. It’s one of the most important steps you can take before you make your offer.

A qualified BC home inspector will look for water damage, mold, foundation concerns or outdated electrical and plumbing systems. If left undiscovered, these can often lead to expensive repairs and insurance claims and a massive amount of stress. Many costly homeowner claims start with issues that could have been identified before the purchase, making an inspection a smart form of prevention. You can find a licensed home inspector in B.C. through the Home Inspectors Association BC.

2. Age and health of major systems

Your inspector will tell you the condition of the roof, electrical wiring, furnace, plumbing and hot water tank. These are all expensive to replace, and older systems can increase the risk of breakdowns, leaks or fires. In some cases, damages that are caused by worn-out, outdated systems may not be covered by your home insurance. This will help you better understand the risks, coverage gaps and budget for future costs before you make an offer.

3. Location and its risk exposure

Is the home in an area with high earthquake risk? Or in a tsunami zone? Or an area prone to wildfires? Do your due diligence, as your dream home’s location can play a big role in your safety and insurance needs. Environmental risks like flooding, earthquakes, wildfires and severe storms vary by neighbourhood and region. The community’s crime rate and theft risks are also important considerations.

Understanding these risks can only help you make an informed decision about the home. And if you successfully bid on the home (congratulations!), your research also helps you choose the right home insurance coverage to protect against potential losses and provide you with long-term peace of mind.

4. The true cost of owning this home

Your purchase price is only part of what you’ll be paying for years to come. Home ownership comes with mandatory ongoing costs like property taxes, utilities, insurance, strata fees and regular maintenance. Try to estimate how much these expenses will add up over the course of a year for properties you’re interested in to help understand how manageable these expenses will be alongside your mortgage.

Good insurance is an essential part of your home budget. To help you save money on your new home, BCAA Members save up to 20% on home insurance. Buy online and you can also save an additional 5% in the first year.

5. Insurance requirements and protection

Many buyers don’t think about home insurance until closing, but it’s wise to consider it much earlier. Most banks and credit unions require proof of home insurance before they’ll release your mortgage funds, and this coverage needs to be in place before you take possession.

A comprehensive home insurance policy should cover damages from fires, storms, theft and vandalism, personal liability and additional living expenses if your home becomes temporarily unliveable. Living in BC, it’s also highly recommended to consider adding earthquake and external water coverages to your policy too, as they’re usually not part of basic plans. Getting set up with home insurance early ensures that you’re protected from day one.

How BCAA helps protect your investment

Protecting your new home doesn’t have to be complicated. BCAA Home Insurance offers you extensive coverage that’s easy to understand and tailored to different types of homes and homeowner needs. We'll help you choose the right coverage by asking the right questions about your home and living situation.

We’ve paid out over 95% of claims* for fire, theft, water and weather, so you can feel confident your home and finances are protected. Learn more at bcaa.com/home and for more guidance, check out our top tips for your dream move.

Protect your dream home with BCAA

Get a home insurance quote online in as little as five minutes. Save up to 20% with BCAA Member savings and 5% when you purchase online.

^{*From 2022 to 2023, BCAA paid out over 95% of home insurance claims related to fire, water, weather and theft. Past performance is not a guarantee of future results.}