InHouse Summer - 2023
6 Mistakes to Avoid When Moving up to Your Next Home!
In this summer edition of InHouse, I outline the six most common mistakes homeowners make when moving to a larger home. Knowing these six mistakes and the strategies to overcome them, will help you make informed choices before you put your existing home on the market.
When you own a home and are looking to move up, there are certain factors that can complicate the situation. It’s very important to consider these issues before you list your home for sale. Not only is there the issue of financing to consider, but you also must sell your present home at exactly the right time in order to avoid the financial burden of owning two homes or, just as bad, the dilemma of having no place to live during the gap between closings.
*Feel free to share these SIX mistakes with anyone you know considering moving up to a bigger home this summer.
1. Rose-colored glasses
Most of us dream of improving our lifestyle by moving to a larger home. The problem is there’s sometimes a discrepancy between our heart’s desire and our bank account. You drive by a home you fall in love with only to find out it’s already sold or it’s more expensive than you were willing to pay. Most home buyers get caught in this hit or miss strategy of house hunting when there’s a much easier way of going about the process. For example, find out if your agent offers a Buyer Profile System or “Home-Hunter Service,” taking the guesswork out of realizing the home of your dreams. This type of program will cross-match your criteria with ALL available homes on the market and supply you with printed information on an on-going basis. A program like this helps home buyers take off their rose-colored glasses and, affordably, move into the home of their dreams.
2. Failing to make necessary improvements
If you want to get the best price for your home, there are certain things you can do to enhance its appearance in a prospective buyer’s eyes. These fixups don’t necessarily need to be expensive. Even if you make a minor investment in the money you spend, it will come back to you ten-fold in the price you’re likely to get when you sell. It’s very important these improvements be made before you put your home on the market. If cash is tight, investigate an equity loan you can repay upon closing.
3. Not selling first
Consider selling before you buy. This way you won’t find yourself at a disadvantage negotiating your sale, feeling pressured to accept an offer below market value just because you have to meet a purchase deadline. If you’ve already sold your home, you can buy your next one with no strings attached. If you do get a tempting offer on your home but haven’t made significant headway on finding your next home, you might want to put in a contingency clause to the buyer’s sales contract giving you a reasonable time period to find a replacement home. If the market is slow and you find your home is not selling as quickly as you anticipated, you could rent out your home and put it on the market later. Better still, find a way to eliminate this situation altogether by getting your agent to guarantee the sale of your present home (see point number 5 below).
4. Failing to get a preapproved mortgage
A preapproval is a very simple process that many home buyers fail to take advantage of. While it doesn’t cost or obligate you to anything, having a preapproval letter gives you a significant advantage when you make an offer on a home because you know exactly how much you can afford and you have the green light from your lender. With a preapproved loan, your offer will be viewed far more favorably by a seller - sometimes even if it’s a little lower than another offer that’s contingent on financing. Don’t fail to take this important step.
5. Getting caught in the “Real Estate Catch 22”
Your biggest dilemma when buying and selling is deciding which to do first. Point number 3 above advises you to sell first. However there are ways to eliminate this dilemma altogether. Some agents offer a Guaranteed Sale “Trade-Up” Program that takes the problem away entirely by guaranteeing the sale of your present home before you take possession of your next one. If you find a home you wish to purchase and have not sold your current home yet, we will buy your home from you so you can make your move free of stress and worry.
6. Failing to coordinate closings
With two major transactions to coordinate at the same time together with all the people involved such as mortgage experts, appraisers, lawyers, loan officers, title company representatives, home inspectors or pest inspectors, the chances of mix-ups and miscommunication go up dramatically. To avoid a logistical nightmare ensure you work closely with your agent.
Until next time,
Go Serve Big!!!
Leticia Almaro Nicolini
& The Almaro Team
Your Home Sold Guaranteed!