Upgrading to a larger home is an exciting step, but it’s fraught with potential pitfalls that can turn an exciting move into a stressful ordeal. Understanding the common mistakes that homeowners make during this transition can save you a lot of trouble. Here’s a guide to navigating these challenges smoothly.
1. Wearing Rose-Colored Glasses
Many home buyers fall in love with a dream home they can’t afford, leading to disappointment and wasted time. Utilizing tools like a Buyer Profile System or Househunting Service can streamline your search to match your financial capacity and housing needs, helping you find realistic options without the emotional rollercoaster.
2. Neglecting Necessary Home Improvements
To attract buyers and secure the best possible price for your current home, making strategic improvements is key. These don’t always have to be expensive; minor updates can significantly boost your home’s appeal and value. If budget is a concern, consider an equity loan that can be repaid upon closing.
3. Not Selling First
Selling your current home before buying a new one puts you in a stronger position financially and in negotiations. This strategy prevents the rush of accepting below-market offers just to meet buying deadlines. If your home isn’t selling as quickly as planned, think about renting it out or using a contingency clause that gives you time to find a new home.
4. Skipping Mortgage Preapproval
Getting preapproved for a mortgage is a straightforward process that many overlook. Preapproval clarifies your budget, strengthens your position when making offers, and can make your offer more appealing compared to others that are contingent on financing.
5. The Real Estate Catch-22
Deciding whether to buy or sell first can be tricky. Some real estate agents offer a Guaranteed Sale Trade-Up Program which can eliminate this dilemma by guaranteeing the sale of your current home before you finalize the purchase of your new one. This allows you to transition seamlessly without the financial strain of juggling two properties.
6. Failing to Coordinate Closings
When closing transactions for both buying and selling, the complexity increases exponentially. Work closely with your real estate agent to coordinate timings and involve necessary professionals like mortgage experts, lawyers, and inspectors. This ensures a smooth process and helps avoid conflicts and overlaps that could complicate your move.
By being aware of these six common mistakes and actively working to avoid them, you can make your move to a larger home a successful and stress-free experience. Whether it’s finding the right agent or getting your financial documents in order, preparation is your best tool against potential setbacks.
