6 Mistakes to Avoid When Trading Up to a Larger Home

Thursday, September 5, 2019  
Gary Overbeek  

~/Views/Blog/HDX/l2/post.cshtml 6 Mistakes to Avoid When Trading Up to a Larger Home

By Gary Overbeek

Thursday, September 5, 2019


6 Mistakes to Avoid

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 habing no place to live during the gap between closings. 

Six Strategies

In this report, we outline the six most common mistakes homesowners make when moving to a larger home. Knowledge of these six mistakes, and the strategies to overcome them, will help you make informed choices before you put your existing home on the market. 
  1. Rose-coloured glasses
    Most of us dream of improving our lifestyle and moving 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 hot or miss strategy of househunting 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 "Househunting Service", which takes the guesswork away and helps to put you in the home of your dreams. This type of program will crossmatch your criteria with ALL available homes on the amrket and supply you with printed information on an on-going basis. A program like this helps homeowners take off their rode-coloured 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 if tight, investigate an equity loan that you can repay on closing. 
     
  3. Not selling first
    You should plan to sell before you buy. This way you will not find yourself at a disadvantage at the negotiating table, deeling pressured to accept an offer that is below-market value because you have to meet a purchase deadline. If you've already sold your home, you can buy your next one with no strings attached. If you do get a tempting offer on your home but haven't made significant headway on finding your next home, you might want to put in a contingency clause in the sale contract which gives you a reasonable time to find a home to buy. If the market is slow and you find your home is not selling as quickly as you anticipated, another option could be renting your home and putting it up on the market later - particularly if you are selling a smaller, starter home. You'll have to investigate the tax rules if you choose this latter option. Better still, find a way to eliminate this situation altogether by getting your agent to guarantee the sale of your present home (see point number 5). 
     
  4. Failing to get a preapproved mortgage
    Preapproval is a very simple process that many homeowners fail to take advantage of. While it doesn't cost or obligate you to anything, preapproval 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 preapproved mortgage, your offer will be viewed far more favourably 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. 
If you are interested in learning about the last 2 steps you should take before trading up to a bigger home, call our FREE Recorded Hotline at 1-833-474-2031 ID# 2107 or call me directly at 519-317-4922. 
*not intended to solicit properties under contract