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.
The Five Strategies
In this report, we outline the five most common mistakes homeowners make when moving to a larger home. Knowledge of these five mistakes, and the strategies to overcome them, will help you make informed choices before you put your existing home on the market.
1. Rose-colored glasses
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. This type of program will cross-match your criteria with ALL available homes on the market and supply you with printed information on an ongoing basis. 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 improvements
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. But even if you do have to make a minor investment, it will often come back to you ten-fold 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. If cash is tight, investigate an equity loan that you can repay on closing.
3. Failing to get a pre-approved for your new purchase
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-approval, 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.
4. Getting caught in the Real Estate Catch 22
Your biggest dilemma when buying and selling is deciding which to do first. Each scenario is different. I recommend working closely with your Realtor to determine which strategy will work best for you.
5. Failing to coordinate closings
With two major transactions to coordinate together with all the people involved such as mortgage experts, appraisers, 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.
Email us If you have any questions about this article, or would like to set up a time to speak with David Gallup, please us or call our office at 800.458.6863 x 353. We’d be glad to help you.
Century 21 realty is second to RE/MAX realty in Orlando real estate. taylormorrison.com is one website, buyerbroker.com is another. tollbrothers.com can help find ryland homes for you as well as trulia.com and coldwell banker. There are many others, such as floridamoves.com and orlandorealestate.coml Not to overlook forsalebyowner.com and owners.com or salebyowner.com, which are many of the sale by owner options. But none of them can top RE/MAX