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6 Mistakes to Avoid When Upsizing Your Home

Tuesday, December 19, 2017   /   by Bret Johnson

6 Mistakes to Avoid When Upsizing Your Home

I have a special report on my website entitled “6 Mistakes to Avoid When Moving Up to a Larger Home.” Today, we’re going to take a look at those six mistakes in order to give you a better understanding about upsizing.

1. Looking at what you can’t afford. The old adage says, “Champagne taste, beer budget.” Understand that the sale is going to take a little bit of time; you need to know what you’re going to net, and then feel comfortable with the payments on that new home. It’s very stressful to fall in love with something that’s a little above your budget and strive to find a way to buy that when you don’t have enough equity.
2. Failing to make necessary home improvements. There are simple things to do (and many times, things not to do) that maximize the value of your home and help you sell it fast. Taking the time to address those issues up front can net you more money and therefore allow you a better budget on the purchase.
3. Not selling your house first. Oftentimes, it’s exciting to find a home online and jump right into the buying process. The issue with that is if you don’t have your current home under contract, you’re not going to know exactly what you’re going to net. When you go to make the offer, it can be very frustrating if you don’t sell your home for the most money in order to do it. Sell your home first, and use the proceeds to buy.
4. Not getting a pre-approval for a mortgage. It’s actually critical to get pre-approved prior to even getting the home on the market. If you know what you can afford on the purchasing side, it’s important to find out what you need to net on the sales side so that you have the money for the down payment, closing costs, and so on.
5. Getting caught in the “Real estate catch-22.” It might actually surprise you that 80% of all homebuyers, according to NAR, have a home that they need to sell in order to buy. If you fall into that situation, you may run into the trap of what happens if your home doesn’t sell, or possible end up with two homes, or none at all. In our guaranteed sales program, we’ll buy your home at an acceptable price and deadline so you can go ahead and make that offer on the one you’re looking to buy at no risk to you.
6. Failing to coordinate the closing. There are a lot of moving parts in buying and selling a home and if you’re trying to time the closing so you just make the one move, it can be very stressful. If one thing falls apart, it can blow up the deal on not only the sale, but also the purchase. This is why it’s important to work with a knowledgeable real estate team, a closing coordinator, and a full-time transaction department so that you can make sure everything falls into line.

If you have any further questions, you can always reach out to us via phone, email, or by visiting our website. We'd be glad to help you.