Four Mistakes to Avoid

When Moving to a Larger Home

After owning a home, buying a new home is much different. There are more options to consider. You can save yourself a lot of headache and stress by carefully making a plan and following it before you consider listing your present home.

Carefully Plan the Selling Time of your Current Home

There are two major issues to consider carefully when selling your own home. First, is financing. If you're not careful, you can get yourself into a financial bind. You don't want to make payments on two homes at the same time.

A second concern is what to do about the gap between selling your current home and buying your next home. You need to have a plan in place to help you during the transition.

Focus on Needs, not Wants

Moving to a larger home is everyone's dream. In making this change, don't loose sight of your bank account.  Far too often you see a home that you fall in love with only to find out is too expensive.

Avoid a hit and miss strategy when searching for your new home. The best way to find that new larger dream home is to use a full time professional real estate agent. Together you should review what you may net from the sale of your current home.  Then, you can discuss your needs for a new home. This will give you a good idea of what you can afford when moving into a new larger home.

Once you’ve done a little homework, you'll be better prepared for your new home search. Now is the time to look at a few homes in your price range to familiarize yourself with the current market.

Get Maximum Return on your Present Home

Take time to analyze the condition of your home. Consult with your real estate agent. Ask him/her what things to produce maximum impact in showing your home. You’ll be surprised that a small investment can significantly increase the return on your home.

For example, a little paint and a few minor repairs can maximize the value of your home before you put it on the market.

Sell Your Current Home First

Ideally you want to sell your current home before you find your new home. This will reduce the probability of paying for two mortgages. It will also decrease the likelihood of you feeling pressure to reduce the price of your home during negotiations. In short, it puts you in the driver’s seat during the entire selling process.

Another alternative would be to rent or lease your home if the current market is slow. Your tax account can help you analyze your options.

Get a Loan Pre-approved Before you Start Looking

You need to know how much you can spend on a new home before you begin your search. It doesn't take very long to meet with a good lender to get a pre-approved loan.

There are two other advantages for getting pre-qualified. First... you will be able to close quicker. Second, your will become the serious buyer in the eyes of the seller. You will get the proper attention during negotiations.

When you're selling and buying a home, your potential problems do increase.  However, you can eliminate these problems by working closely with a full time professional real estate agent. Together you can avoid many problems that occur when moving up to a larger home.