Upsizing or Downsizing to Your New Home

Unlike the experience of buying a first home, when you’re looking to move-up, and already own a home, there are certain factors that can complicate the situation. It’s very important for you to consider these issues. Be aware of all the possible factors that play into your selling or buying a home and in this situation, both.

Not only is there the issue of financing to consider, but you also have to sell your present home at exactly the right time in order to avoid either the financial burden of owning two homes or, just as bad, the dilemma of having no place to live during the gap between closings. If you are the play it safe type and would not like the idea of either of these options please read the article "Buy or Sell First".

Six Strategies
In this report, we outline some of the more important strategies to moving up that we feel you would like to know as you make this decision. Knowledge of these strategies will be very useful to you during this time sensitive case of moving up.

1. Rose-colored glasses
   Most of us dream of improving our lifestyle and moving to a larger home. The problem is that there's sometimes a discrepancy between our hearts and our bank accounts. You drive by a home that you fall in love with only to find that it's already sold or that it’s more than what you are willing to pay. Most homeowners get caught in this hit or miss strategy of house hunting when there's a much easier way of going about the process. For example, find a real estate professional who has access to the MLS (Multiple Listing Services). Some real estate agents pay large sums of money to have access to the MLS that allows them to view all current and available homes on the market. This service will allow you to cross-match your criteria with ALL available homes on the market and supply you with printed information on an ongoing basis. A program like this helps homeowners realize what the current market conditions are as well as helps them realize reality with out their rose-colored glasses which ultimately allows them to move into the home that they can be very pleased with.

2. Failing to make necessary improvements
   It is amazing what a few little fix-up odd and ins will do for the price of your home. When selling your home a question that needs to be asked to yourself is, “What realistically makes my home better than any other home in this price range? What will cause a buyer pick my home first?” Remember, you are trying to sell this home as soon as possible so that you can get into you the other home that we have hopefully already found. Read the article Top Seller Tips: Sell Quickly, for the Best Price. If you want to get the best price for the home you're selling, there will certainly be things you can do to enhance it in a prospective buyer's eyes. These fix-ups don't necessarily have to be expensive. But even if you do have to make a minor investment, it will often come back to you tenfold in the price you are able to get when you sell. It's very important that these improvements be made before you put your home on the market. If cash is tight, investigate an equity loan that you can repay on closing.

3. Not selling first
   You should plan to sell before you buy. This way you will not find yourself at a disadvantage at the negotiating table, feeling pressured to accept an offer that is below-market value because you have to meet a purchase deadline. If you've already sold your home, you can buy your next one with no strings attached which is very advantageous when making an offer on a home. Imagine, you selling your home and there are two offers in front of you, one is contingent upon the sell of their current home and the other offer has no contingencies; which one do you choose?
   
   Here are your options as a home seller: If you do get a tempting offer on your home but haven't made significant headway on finding your next home, you might want to put in a contingency clause in the sale contract which gives you a reasonable time to find a home to buy. If the market is slow and you find your home is not selling as quickly as you anticipated, another option could be renting your home and putting it up on the market later - particularly if you are selling a smaller, starter home.

4. Failing to get a pre-approved mortgage
   Pre-approval is a very simple process that many homeowners fail to take advantage of. While it doesn't cost or obligate you to anything, pre-approval gives you a significant advantage when you put an offer on the home you want to purchase because you know exactly how much house you can afford, and you already have the green light from your lending institution. With a pre-approved mortgage, a seller will view your offer far more favorably - sometimes even if it's a little lower than another offer that's contingent on financing. Don't fail to take this important step. For a free pre-approval let us know.

5. Failing to coordinate closings
   With two major transactions to coordinate together with all the people involved such as mortgage experts, appraisers, loan officers, title company representatives, home inspectors or pest inspectors the chances of mix-ups and miscommunication go up dramatically. To avoid a logistical nightmare ensure you work closely with your agent. This process can be difficult and trying even with knowledgeable guidance and direction but it will makes the process a little smoother. 

NOTE: Information on this site is not guaranteed to be accurate. Some content is compiled from 3rd party sources. If you are aware of incorrect or outdated information, feel free to contact us.