5 Mistakes To Avoid When Trading Up to A Larger Home

Before you list your current home for sale there are some issues that you should consider. Chances are that when you bought your first home you were moving from an apartment or family and all you had to consider was getting in or out at the first of the month. There are much larger issues to consider when moving up to another home. Some of these issues are financial, such as juggling two mortgages or if things don't go as smoothly as planned, or having no where to go between closing on the old house and moving to the new one.
There are 5 mistakes that homeowners frequently make when moving to a larger or different home. We have outlined the 5 mistakes below: 

 5 Mistakes To Avoid When Moving Up To A Larger Home

1.) Pie in the Sky Syndrome

Most of us want to improve our lifestyles and move to a more spacious or luxurious home.  The problem is that sometimes it is not realistic given our current financial situation:  college funds, retirement savings, aging parents and many other complications.  If you are searching for a home through local advertising or driving bys-you are likely going to be disappointed that the home is already sold or out of your price range.  Find out if your agent offers an exclusive buyer search program or other house hunting system that can cross match your needs and price range with what is available on the market.  This approach can help those with “Pie in the Sky” and find an appropriate home that they can be happy in for years to come.

2.) Ignoring Repairs and Improvements
Most homeowners have put off necessary repairs and improvements and have gone about their daily lives with the attitude that I will get to it someday.  Today is the day! If you plan to sell your property for the most amount of money possible any and all repairs should be made before you list your home for sale.  Speak to your agent and ask for a list of recommended repairs and improvements or better yet contact us and ask for a copy of our DVD, “How to Price & Prepare your home for Sale.”

3.) Not Securing a Buyer for Your Home
It is best to sell before you buy another home in most cases.  It gives you the best possible leverage when buying another home as you are a ready & able buyer and you are also not facing a time crunch and therefore accepting a less than stellar price on your home for the sake of timing.  If you find that you get a very good offer on your home that you would like to accept you also may add a contingency to the purchase & sales contract to make it subject to you finding suitable housing within a certain time frame.  Other options include renting (consult a tax professional) and inquiring about our guaranteed sale program (see number 5.)

4.)    Failing to Get Mortgage Approval
Sometimes homeowners who already own a home and are looking to move up fail to see the importance of getting a mortgage pre-approval.  Mistakenly, they assume because they have an existing mortgage that they will have no problem getting another.  It is always wise to sit down with an originator with updated income information, assets and liabilities to come up with a maximum purchase price before you put your offer on the table.  You will have a significant advantage over any other offers with a pre-approval in hand, even an offer of more money but with financial contingencies that are less than favorable to the seller.

4.) Getting Stuck Between a Rock and a Hard Place

The biggest decision and the one fraught with the most indecision is whether to buy or sell first.  Mistake # 3 advises you to sell first.  Some people are not comfortable with this suggestion and envision living in a motel or other temporary housing while trying to find suitable housing.  We offer a Guaranteed Sale program that guarantees the sale of your existing home before you purchase a new one.  If you find the perfect home for you but have not sold your existing home, we will purchase your home so that you can move forward with confidence knowing that you have secured a buyer for your home.

Ready to sell your current home and move up?  Be sure to request your Home Evaluation CMA.  Or do you still have questions and need more information?   If so, contact us today and you wil recieve a prompt response from one of our full-time professional realtors.