moving up- do you buy or sell first?

CHANGE  can be hard– you can’t make an omelet without breaking a few eggs…

It’s not easy making the decision to ‘move up’. If you’re like many people, you’ve spent time and care renovating your present home to your liking and you are attached to it.   Then one day, you may find yourself needing more room or maybe you need to change location or perhaps, you just feel like a change.  The thought of selling can be daunting if you consider all the work and effort in getting your house ready as well as the cleaning, the packing, the moving, and unpacking. The question is: is there a property out there that would make it all worthwhile?

 

First off, you need to do two things:

 

1.     Assess your buying position as it stands now considering the following:

•       How much mortgage have you paid down?

•       What is your house presently worth in today’s market?

•       What other debts do you have?

•       What costs are associated with moving?

•       How much money do you have left over for a down payment?

•       Talk to a mortgage specialist to see what interest rate you could qualify for in case you wanted to move forward.

 

2.     Research properties with your desired parameters to educate yourself as to what’s out there and for what price.   Are there several properties in your price range that motivate you or just a few? Are you being realistic?

 

Once you’ve completed these two steps, you can evaluate how strongly you feel about moving. If the answer is ‘yes’, then the next step is deciding if you want to buy or sell first, that classic ‘which came first chicken or egg question’. Each comes with a certain amount of risk.

If you sell first, you may find yourself under a tight deadline to find another house, or be forced in temporary quarters. If you buy first, you may be saddled with two mortgage payments for at least a couple months. You may need the money from the sale of your original home in order to pre-qualify for a loan for your new home.

Weighing the pros and cons can be difficult. There are many variables involved and there is no universal correct answer. It basically comes down to your specific circumstances.  Take some of the stress off and minimize your risks  by having a professional guide you into make the right decision for you. To learn more about the process give me a call and I’d be glad to answer any of your questions.