The Buy/Sell Dilemma
This is a topic very relevant in today’s (or any) strong market and inspired by clients considering making their NEXT move. Consider this:
Your life has changed and you know you’re sitting on a handsome amount of equity in your current home. Maybe you just landed your dream job, you're just tired of having neighbors all around you in that condo you bought right after college, all you’re friends and family are in a different part of town, or perhaps you’ve simply outgrown your place and need more space. Whatever the reason for your next move, there are going to be a lot of moving pieces… especially in a competitive market.
Making it happen may not be as simple as it sounds and preparing yourself for the process is the first step.
Get Pre-Approved for Your Purchase
Most “move-up” home buyer’s spend 30% or more on their next purchase. Yet, although your income may have increased well over that same threshold, there is much more to consider in your qualification this time around:
- How much equity do you have in your current home? Free Home Valuation
- Do you have enough set aside for a down payment without selling your current home?
- How much do you qualify for?
- Can you qualify for 2 payments at the same time or would you have to sell to buy?
- Is there anything on your credit that needs repair or doesn’t actually belong to you?
They say, “you don’t know what you don’t know,” and getting pre-approved is the first step to making your next move. Not only will it give you a head start in competing against other buyer’s in the market place, but it will help you identify the options you actually have available to you.
Get a Realistic Estimate of Your Home’s Value
Automated valuation sites, like Zillow, can be great for showing trends in a specific zip code or neighborhood. What they lack is specific data. Think about it… how would they know if you remodeled your kitchen last summer, finished your basement right after you bought it, or put on a new roof on when it started leaking? Fact is, they don’t!
There are a couple of routes you can take here.
- Have an appraisal performed. It will cost about $500, but you’ll have a great idea of how much a lender will loan a buyer to purchase your home and any repairs you’ll have to get done in order for a loan to go through. Not to mention, you’ll be armed with evince to support your asking price when it comes time to list.
- Ask a real estate agent to perform a market analysis. It will likely be Free Home Valuation, and give you similar information to work with. A knowledgeable agent will be in tune with what prospective buyer’s are looking for, recommend repairs/updates to help your home sell quickly for the most money, suggest a realistic list price, and help you understand how much you’ll actually net from the sale of your home.
Know Your Options
If you’ve taken the first steps, you’ve now armed yourself with enough information to make a plan. Through your initial discovery you know what you can afford, you know what your home is worth, and you know what you want to buy. So what’s next?
Make a plan!
The next steps may seem complex, but they don’t have to be nor do you have to tackle them on your own. Soliciting the assistance of a real estate agent can really help ease the process and greatly limit the risk of ending up homeless in the process. The following flowchart can help give you an idea of what your plan might look like:
No matter where you fit in these potential processes, preparing your plan will be essential to successfully achieving your move. For greater detail on each step or assistance making the plan that fits your situation, let us know how to connect with you and we’ll reach out ASAP.
Of course, every buy/sell situation is different and yours may not “fit the mold” of a flowchart. Let’s chat and create your plan together!