Moving up is an exciting topic, but it’s also one that generates a lot of questions from homebuyers. There are three questions, in particular, we get asked most commonly, and asking yourself these questions will help you get a better idea if now’s the time for you and your family to move up.
1. What is my current home worth? There are a lot of factors that go into this, but the majority of offers you’ll receive for your home will be using financing, which means your home will undergo an appraisal.
Aside from knowing what your home is worth, you also need to know what makes it unique and what features make it stand out. It’s not just about how nice your home is and what other homes are selling for in the area—it’s about what other homes people can buy in your community, your city, or the surrounding cities.
2. How do I time the move? Once you know your home’s value, you’ll know what kind of proceeds you’ll get that you can carry into your next home purchase. In this scenario, we create a net sheet for our clients to use. If you can buy without needing to sell your current home first, that makes you more attractive as a buyer because you’re not a contingent buyer. However, the downside is you may have to pay two mortgages at once for a short time. There are strategies around this scenario, such as renting out your home, that we’d be happy to discuss with you further.
3. What happens if I sell but I don’t find the right home to move into? On our team, we always put our buyers in a strong position. To prevent this from happening, we only accept offers that are subject to you being able to find a suitable replacement property. If you can’t find one, you don’t have to sell. This reduces your risk all around.
Buyers will want assurances that you’re looking for other properties, and once you’ve found the next home you’d like to purchase, that seller will want to know that your current home is on the market and is desirable.
This can be a stressful situation, but certain life events (e.g., a new addition to your family or a job promotion) either necessitate more space or allow you to buy a bigger home. In any case, we’ve created an in-depth guide for moving up that we’d be happy to share with you if you’d like to know more about this topic. Just send me a comment with the words “move up” and I’ll send you a copy.
If you have any other real estate questions I can answer for you, feel free to give me a call or send me an email. I look forward to hearing from you.