You were fortunate enough to buy a home a few years ago and got your foot in the door to the housing market...congratulations! Now you’ve been home for the last year (thanks, COVID!) and realize the space you have is a little cramped. Either you’ve expanded your family or maybe have seen some leave the nest and now you find yourself dreaming of the next step.
Perhaps it’s a larger lot to give yourself more space and privacy. Perhaps it’s a different location that is more conducive to work or school proximity. Or perhaps it’s that yearning for the dream home that you have always wanted.
If you are considering this move, it’s likely you have gained value in your current home and have been saving up for the next venture.
While it’s natural to be excited about buying a larger home (frankly, it would be a little weird if you weren’t), there are a few challenges you can expect—and overcoming them is the key to a successful purchase. If your family is ready to upsize, here are a few tips for doing it smoothly…
#1 Determine your “Upsizing” Goals
Are you looking for that special lot to build your dream home from the ground up? Are you looking for a home that is original so you can remodel it to complement your own aesthetic? Or are you simply looking for that additional bedroom, and/or bathroom ensuite to take bubble baths and relax at the end of the day?
Whatever it is, determine your Top 3 “must-haves” in order for you to make a move. This will help your agent understand your priorities.
#2 Determine How Much Space You Really Need
Is your Mother-in-Law really going to be visiting that often? Are the kids a few years away from going off to college? Is the home office situation likely to change as soon as the world gets back to normal?
Think about the space you really need. You may have belongings that you try to envision in your new home. Do you use all of these belongings? Is it time to spark joy and tidy up with Marie Kondo and keep only those things you absolutely love and use?
How will you use the space you acquire? Entertaining? Relaxing? Gardening hobby realization? Whatever your answer is should determine what you really need.
#3 Don’t Forget the Budget
When you upsize there are additional costs to consider. Not only will you likely be paying a bigger mortgage, but you should also consider expenses such as, utility bills, landscape upkeep, possible pool maintenance, housekeeping, property taxes, etc. With more house comes higher cost for upkeep in general. However, on the flip side, if you are swapping for a newer home you may find some cost savings with energy efficiencies that you did not have before.
#4 Think Ahead
So while your plan may be for the next 5 years, it is a good idea to think ahead 10, 20+ years. How long do you plan to stay in the home? Think about the day when you may need to sell again. When searching for the next home think about desirability. This could include location - proximity to dining, good schools, freeways, ocean, etc. It could also mean where the home sits in a neighborhood - interior, quiet, larger lot, cul-de-sac, etc. Many factors go into making a home easy to sell in the future. While inventory is low right now and demand is high it seems like homes sell very easily. This won’t last forever so it is important to be prudent about your home purchase.
#5 Act Carefully in this Seller’s Market
In order to be a great buyer you will need to be able to act fast. The good news is you will likely sell your existing home quickly. If you do not need to sell your home in order to buy, even better! The fewer contingencies you need in order to purchase the better your offer will appear.
But selling your home is not a complete disadvantage. It is likely you have a great deal of equity in your home and sellers know that your home will sell quickly in this market. The trick is making the entire transaction seamless and ensuring you are not without a home. That is where we can offer some additional guidance based on your situation.
There’s no doubt that buying a bigger home can be exciting, but it also comes with some challenges. To overcome them and make a successful purchase, work with a team that knows the process inside and out. And if you’re gearing up to sell your current home before you upsize, why not start with a free home evaluation? Contact us today!