You are a home owner with your eye on a bigger and better property! Perhaps you want to move to a different location, or a larger home. Regardless of your reason for upgrading your accommodations, you are on the move.
When you purchased your first home, you likely found that the learning curve was steep. However, you probably feel a lot more comfortable about the process now. In fact, you might even be considering making your next move without a real estate representative.
Whether you will enlist the services of a real estate professional or not, it is imperative that you do your homework! Keep in mind that every real estate experience is different and that a wealth of information is required to successfully navigate the unique conditions of each home sale. For example, if you are moving from your first home to a second you will have to deal with delicate timing that was not an issue when you bought your first home.
To help ensure you are as educated as possible in the matter of selling a home, I have provided an important report titled, “Trading Up to a “Bigger & Better” Home? Avoid These 6 Mistakes”. This industry insider report discusses the common mistakes made by home sellers and the corresponding strategies that will help you sell your home quickly and for top dollar.
TRADING UP TO A “BIGGER & BETTER” HOME? AVOID THESE 6 MISTAKES
Already owning a home and planning to trade up can present certain difficulties not experienced when purchasing your first home. To alleviate complications, consider these important issues before listing your current home.
In addition to considering increased financing, you must also sell you current home at the correct time to avoid carrying two mortgages or selling your current home with nowhere to move next.
6 MISTAKES AND CORRESPONDING STRATEGIES
This report points to 6 mistakes home owners often make when moving up to a larger home. By understanding these mistakes and the strategies you can employ to avoid them, you will be better informed when it comes time to list.
- Looking For Homes Through Rose-Coloured Glasses
Most of us long for a home that is larger than where we currently live and serves to elevate our lifestyle. However, one’s bank account can not always satisfy one’s desire. Home buyers can too easily fall in love with a house that is unavailable or too expensive. Avoid shopping with this hit or miss style by making use of your realtor’s knowledge of the homes available on the market. A realtor can match your wish list (and limitations) with homes that are available, thereby removing your rose-coloured glasses and ensuring that you will only fall in love with homes that are within your reach.
- Not Making the Improvements Needed to Sell Your Home
To get the best price when you sell your current home, make sure you make the necessary improvements. A house that is free of flaws is always more appealing to buyers. Most repairs you can make won’t be very expensive. However, even if you must invest some money in repairs, you will typically see a ten-fold return on this investment realized in your selling price. Be sure to make these improvements prior to listing. If you lack the cash, an equity loan that can be repaid upon closing might be a suitable option for your situation.
- Failing to Sell Your Current Home First
It is strongly recommended that you sell your current home before buying your next. If you commit to a purchase deadline for your next home, you lose some bargaining power in the sale of your current home. Instead of being at an advantage, you will be disadvantaged because you have a deadline to sell. As a result, you might have to accept an offer below market value. Once you have sold your home, you can purchase your next one without complications stemming from owning another property waiting to be sold. If you receive an excellent offer on your current home but have not yet found a new home, stipulate a contingency clause in the contract which accommodates the time you need to find a new home. If your home is not selling and you desperately want to move, you could consider renting your home for now and relisting at a better time. Do your research about tax rules if you want to rent your home. It is recommended that you eliminate this complication altogether by having your agent guarantee the sale of your home (this is further explained in point 5).
- Not Getting Preapproved For a Mortgage
Too many owners neglect to seek preapproval, despite the fact that it is a simple process that comes with no strings. In fact, it is truly advantageous because when placing an offer on a home, you are completely informed as to how much you can afford. Additionally, a buyer with a preapproved mortgage is far more desirable than one without. This advantage could even be viewed more favourably than a higher offer contingent on financing. Be sure to get preapproved!
- Caught in a Real Estate “Catch 22”
When moving from one home to another, you will likely debate whether it is best to buy or sell first. Point number three proposed prioritizing the sale of your current home. However, you can side step this entire problem by taking advantage of your agent’s “Guaranteed Sale ‘Trade Up’ Program” that guarantees the sale of your current property before you move into your next. This situation is ideal if you have found the perfect home for your next move, but have not yet sold your current property. With this program, your realtor will buy your current home themselves so you are free to pursue the purchase of your dream home.
- Not Coordinating Closings
Mix-ups seem inevitable in the transactions of selling your current home and buying your next. Two sets of mortgages, appraisals, and inspections must be conducted while two sets of mortgage experts, appraisers, lawyers, loan officers, title company reps, and inspectors are involved. Miscommunications can increase these complications even further. It is best that you work closely with your agent to avoid any problems.
If you are planning your next move, please do not hesitate to contact me with any questions or concerns. Together we can devise a plan of action right for you.