Real Estate Insight

Strategies for Trading Up to a Bigger Home

When purchasing a home for the first time many buyers can become overwhelmed due to the timeline and contingencies that need to be followed.  That’s why it’s always good to have a team of agents that can help you through the process.

What can be more frustrating for buyer is if they already have a place and they need to sell it before they can buy something else.  Here are some key issues that you may want to take into consideration if you fall into this category.

Many of us who are thinking of moving into a larger home usually visit open houses only to find out it’s priced to high.  In situations like this it’s best to find a Realtor who offers some type of Buyer’s Profile System.  A system like this can cross match your criteria with all the available homes on the market and take the guess work out of finding the home of your dreams.

Finding that right home to replace the one you have maybe easy.  Selling the one you current have may not.  If you want the best possible price in the least amount of time there are certain things you can do to enhance the property.  Fixing up the property does not necessarily mean you have to spend a lot of money.  However a small investment in the right area can come back to you ten-fold when it sells.  Make sure all repairs are done prior to listing the property and if cash is tight you may want to explore an equity line of credit that can be paid back once the home is sold.

The best practice in a trade up is to sell before you buy. The reason for this is you do not want a disadvantage when comes to negotiating with sellers.  A contingency to sell is almost always looked at as a weak offer.  If your home is already sold, you can purchase with no strings attached.  If you happen to get an offer on the home you are trying to sell, you can always make it contingent upon you find a replacement property.

What most people forget to do is to get pre-approved.  This amount can change drastically and depends on what you can net on the home you are selling.  The more net proceeds you receive from the sale, the bigger down payment you may have.  It’s always a good idea to get pre-approved.  It not only gives you a better idea of what you can afford, it also makes your offer on a new home stronger and it maybe viewed more favorable if competing with another buyer.

One has to realize that buying a bigger home and selling your current home can be confusing.  What you are really doing is two major transactions at the same time.  Make sure all the people involved coordinate together so that there is no miscommunication.  To avoid any problems it’s always best to work with a team of real estate agents.

Hope this helps.