Trading up to a Larger Home? Here are Five Mistakes to Avoid
“. . . you have to sell your present home at exactly the right time in order to avoid either the financial burden of owning two homes or, just as bad, the dilemma of having no place to live during the gap between closings”
Unlike the experience of buying a first home, when you’re looking to move-up, and already own a home, there are certain factors that can complicate the situation. It’s very important for you to consider these issues before you list your home for sale.
Not only is there the issue of financing to consider, but you also have to sell your present home at exactly the right time in order to avoid either the financial burden of owning two homes or, just as bad, the dilemma of having no place to live during the gap between closings.
In this report, I outline the six most common mistakes homeowners make when moving to a larger home. Knowledge of these six mistakes, and the strategies to overcome them, will help you make informed choices before you put your existing home on the market. Short of not hiring the most experienced real estate expert,these 5 real estate mistakes could mean the difference between selling for less than your home is actually worth and selling for top value in the market!
1. Wearing Rose-colored glasses when it comes to your home:
Most of us dream of improving our lifestyle and moving to a larger home. The problem is that there’s sometimes a discrepancy between our hearts and our bank accounts. You drive by a home that you fall in love with only to find that it’s already sold or that it’s more than what you are willing to pay. Most homeowners 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 House-hunting Service, which takes the guesswork away and helps to put you in the home of your dreams. I offer both styles of home searches. I will create a search especially designed for you in the areas you indicate combined with your needs as a home buyer. This type of program will cross-match your criteria with ALL available homes on the market and supply you with email information on an ongoing and up to the minute basis if necessary. A program like this helps homeowners take off their rose-colored glasses and, affordably, move into the home of their dreams.
2. Failing to make necessary updates or cosmetic changes
If you want to get the best price for the home you’re selling, there will certainly be things you can do to enhance it in a prospective buyer’s eyes. These fix-ups don’t necessarily have to be expensive. Even if you need to make a minor investment, it will often come back to you several in the price you are able to get when you sell. It’s very important that these improvements be made before you put your home on the market. Simple things like a fresh coat of paint and cleaning carpets can add value or speed to your sale! I will meet with you personally to go over your needs and options. I have access to experts in all aspects of the details you will need to make your home on of the most desirable on the market! Also, consider staging as an option to making your home appealing to buyers.
3. Not selling before you buy
You should plan to sell before you buy. Unless you have the ability and financial stability to own two homes, you will want to prepare and list BEFORE you purchase. Many times you can do both at the same time. This is actually ideal. This way you will not find yourself at a disadvantage at the negotiating table, feeling pressured to accept an offer that is below-market value 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 in the sale contract which gives you a reasonable time to find a home to buy. There is also the possibility to negotiate for a holdover rent back with the new buyer of your home if the situation is such that the buyer can do so. This actually happens often! This is something that we will discuss when we meet! If the market is slow and you find your home is not selling as quickly as you anticipated, another option could be renting your home and putting it up on the market later – particularly if you are selling a smaller, starter home. You’ll have to investigate the tax rules if you choose this latter option.
4. Failing to get a pre-approved mortgage
Pre-approval is a very simple process that many homeowners fail to take advantage of. While it doesn’t cost or obligate you to anything, pre-approval gives you a significant advantage when you put an offer on the home you want to purchase because you know exactly how much house you can afford, and you already have the green light from your lending institution. With a pre-approved mortgage, 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. As in all of the other steps, I will meet with you to discuss your pre-approval for a loan and have you meet with one of our preferred lenders. I have 40 years of loan and real estate lending experience and I will put it to work getting you qualified to purchase your new home!
5. Failing to coordinate closings
With two major transactions to coordinate 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. I work with a highly skilled team who knows all of the communications needs for your transaction. This communication includes discussions with the buyer’s lender and the title company. You can rest assured, when working with me as your agent, you will not need to worry about scheduling conflicts or closing coordiation issues.