Moving
On Up
You
purchased your home a few years back and now things have changed in your
life. Maybe your family has grown, maybe you’ve become an empty nester
or maybe you simply want to move into a different neighborhood. Whatever
the reason, you are now again in the market for a home.
The first
time you bought a home, as complicated as it seemed at the time, it was
a straightforward process. You were renting an apartment or living at
home. After spending the time needed to find the home you wanted, you
applied for your financing, waited for the seller to give you a move out
date, you closed on the purchase and moved in.
This time around you will need to coordinate two transactions,
the purchase of your new home as well as the sale of your current
residence.
The
advice most commonly given in this situation is to put your home on the
market, get a buyer for it and then go into contract for your new home.
This approach comes with one serious flaw. You have committed yourself
to a timeframe in which to find your new home. In the contract you
signed for the sale of your current home, there will be a target date
for closing and vacating the home that you must meet. Your requirements
for this purchase are going to be more demanding than when you first
bought. You are going to be much more particular, and rightfully so. You
are looking to improve on what you already own. The time constraint
imposed here will make the transition more stressful than necessary and
may in fact force you to purchase something that you are not happy with.
We
suggest a different approach. Find your new home first before selling
your current residence. The risk here is that you may be stuck with two
homes, or worse, not be in the financial position to close on the
purchase and be in default on the contract.
The way to prevent this from happening is by developing a plan of
action based on current factual data.
Plan
of Action
The
first thing you need to do is to discuss the feasibility of the
transition. Set up an appointment with us. We will discuss your financial
capabilities, credit position and timetable. From this you can move onto
the next step, which is to begin your search.
Within
a short period of time you should have a good feel for what your new home will
cost. You will have pricing based on today’s market. This not only gives
you pricing on what you a looking to buy but gives you an idea of what
your current home will sell for in today’s market. Remember, it
doesn’t matter what you think your home is worth, you can only sell your
home for what the market will bear.
Pride
of ownership leads you to believe your home is worth more than it really
is. It may in fact be worth more to you than to the marketplace, but
you’re not the buyer, you’re the seller. You must be objective when
you set your asking price. Your search for a new home will guide you in
pricing your current residence.
When
you bought your first home, your search began to narrow as it progressed.
The style of house, location, etc. became more focused. This will again
happen. As you fine tune your search, you can begin to market your home.
With your new knowledge of pricing you will price your home realistically. Marketing time will be reduced because the home is now priced
right, something you could not have done prior to this time. The risk
factor of owning two homes has been substantially reduced.
By
staying in touch with us during this process you will reduce your risk
factor even further. We will be able to keep you up to date regarding the
interest rate environment. We will be able to assist you in structuring
your offer when you begin negotiations. We can even help you in
negotiating the sale of your home.
There
is no additional charge for this service. As your mortgage broker, we are
happy to assist you in any real estate deals you are considering getting
involved in. We work for you and no one else in your transactions. All
advice is given with your best interests in mind, no one else’s.
Moving
on up should be a pleasurable experience. With our help it will be. Give
us a call so we can discuss your transition in more detail.
|