Most people reach a point where their starter home just doesn’t cut it anymore. Often times, their family grows. Other times, they need more space to explore their interests and hobbies without being too cramped — or they just want to move to more valuable property.
Real estate agents call these home searchers (who want to buy and sell a home at the same time) Move-Up Buyers. Move-Up Buyers have very specific fears and needs — they are often worried about either having 2 homes or losing both and having NO home. However, there are a few keys to buying a home while selling your current home that will save you time, money, and stress!
Question #1: “What are my financial possibilities?”
If you think you are ready to move up to a larger, more valuable home, you need to make sure that you are ready for the increase in financial responsibility that will likely accompany your purchase.
When you move up as a home owner, you will have to go through the mortgage process again. Because your new house will likely appraise higher than your current property, your monthly payments are probably going to be higher. However, you can’t neglect other costs that come with home ownership. Taxes, utilities, upkeep costs — all of these will be higher in a larger, more valuable home.
Luckily, there are ways to get a handle on what is possible within your budget. To figure out your monthly mortgage payments (and see how they change when you adjust your down payment), you can check out a mortgage calculator. There are ways to reduce the stress of getting a mortgage, as well — information is your most powerful tool, so make sure to check out our home mortgage guide to learn more.
The absolute best way to figure out what you can afford — based on your financial realities and goals — is to speak with a real estate professional. Our team is filled with experts who help thousands of families buy homes every year; we have the experience, knowledge, and connections that you need to take the financial stress out of buying and selling a home at the same time. If you want to learn how we can help, contact the Keri Shull Team today!
Keri’s Tip —
If you’re worried about covering the increased costs of your new home (especially the down payment), don’t panic! Creative real estate agents and lenders can show you how to use the equity from your current home to help pay for the new home. We’d love to introduce you to one of our local partners to discuss a Home Equity Line of Credit (HELOC). You might be surprised to discover what you can afford!
Before you get too deep into your new mortgage and equity options, it’s always good to know what your current home is worth — so check out our Home Valuation Tool to learn about what your home might fetch on the current market.
Question #2: “Should I Buy or Sell First?”
There’s one question that we frequently hear from Move-Up Buyers: ‘Should we buy or sell first?’ Unfortunately, there’s no one-size-fits-all answer to this inquiry — it depends on each buyer’s situation.
If you sell your current home before buying a new home, you risk losing the more valuable property and being stuck without a permanent residence. Luckily, there are ways that you can increase your chances of winning a home (even without being the highest bidder!), but the fear is still there for many buyers.
If conversely, you purchase a new home without selling your current home, you could be saddled with 2 homes — and two mortgages. For most people, this could create immense financial stress, particularly if they don’t have the opportunity to plan for it.
These two possibilities are the main reason that people are scared to buy and sell a home at the same time. Many would-be Move-Up Home Buyers fret over the decision that would benefit themselves and their family — because they are worried that about their timeline and can’t find the best real estate team who will help them work through their fears and stress.
In fact, this is why we created our Move-Up Buyer Guarantees! These exclusive guarantees will eliminate the stress of figuring out the timeline of buying and selling. You will never get stuck with two payments, nor will you ever have to worry about being without a home during the transition. And if we don’t sell your home within your time frame, we will buy it from you!
Keri’s Tip —
The best way to avoid losing out on your new home is to work with an experienced agent to purchase an off-market property. Because there will be fewer people competing for a home that isn’t listed in the Multiple Listing Service, you will have more flexibility in your offer. We specialize in helping home buyers find their dream house off-market — so click here to learn about how you can get Priority Access to our off-market opportunities!
Here’s Where We Come In
Moving up to a new home shouldn’t be scary — it should be exciting! Stepping up to a higher-valued property can be a great opportunity to increase your available space, prepare for a growing family, and secure your financial future with a more powerful real estate investment.
However, that doesn’t mean that you should start packing your bags as soon as you have the savings to cover a down payment! The best way to ensure that your new investment will pay off is to work with experienced, knowledgeable experts who can walk you through every step of the process.
At the Keri Shull Team, we specialize in helping individuals and families move up to a new home, whether they are living in Arlington VA, in Washington DC, or in any of the other amazing neighborhoods in the DMV.
Our team is comprised of local experts who can help you find the perfect dream home for you and yours while taking the stress out of simultaneously buying and selling. If you are ready to speak to one of our amazing expert team members, click here today to schedule your no-hassle consultation today!