Move Up Your Home-Buying Strategy: 3 Expert Secrets!
In a RE/MAX Canada survey of Canadians, 16% of respondents said they wanted to move up or enter the housing market. The high cost of real estate has made entering the market difficult for many first-time homebuyers, but move-up buyers are in a great position right now thanks to well-timed purchases and significant equity gains, making looking for a “forever home” feel less of a stretch.
It’s likely that you were young, broke, and prepared—or at the very least, warned—to make some compromises when you bought your first home. You simply can’t have it all, they said. Move-up buyers, on the other hand, typically have some savings and equity to work with, making their next move less of a compromise and more of a thoughtful selection.
However, move-up buyers have unique difficulties that necessitate a well-thought-out approach. Here are three choices for the savvy, well-prepared move-up buyer!
Sell first, then buy.
The move-up buyer who wants to avoid having to make two mortgage payments at once should use this approach. If your existing home doesn’t sell quickly enough, you run the risk of having to carry two mortgages. It also lessens the likelihood that you will have to lower your asking price if the sale doesn’t go through as quickly as you would like. This is a good choice for move-up buyers who plan to use the sale proceeds of their current home to pay for their new (likely more expensive) one. You’ll be able to purchase your next home with complete confidence if you sell first.
Buy firstly, then sell.
A seller’s market, also known as a situation where homes in your preferred neighborhood are selling faster than “For Sale” signs can appear on the front lawn, may indicate that the “buy first” strategy is the best course of action. If you buy your new home before you sell your old one, you won’t feel pressured to settle for a subpar property or forced to look for other temporary housing while you scout the market. This move-up buyer continues to reside in their current home, giving them the freedom to look around and keep looking until they find the ideal place without any additional hassle or pressure. Typically, a bridge mortgage is necessary for this move-up buyer.
Your purchase and sale should be timed and coordinated.
When it comes down to it, this move-up strategy is the best, but getting there is a different matter. It can be challenging to coordinate the closing dates of your purchase and sale. Keep in mind that there are three dancers in this tango: you, the person you’re buying from, and the person you’re selling to. Additionally, you’ll need to move in and out on the same day. In this situation, time is your best friend and flexibility is your savior. This demonstrates that you have thought things through and have begun the organizing and decluttering process well in advance. You have also researched neighborhoods and gotten pre-approval for a mortgage.
Your move-up plan will be influenced by several things, including your financial situation, the state of the housing market, and how comfortable you are in your current home. To ensure a smooth transaction on both sides of the offer table, prepare ahead of time and seek the appropriate advice from a knowledgeable, experienced RE/MAX agent.
When it comes to buying a home, it’s important to have a strategy in place to ensure that you’re getting the best deal and making the most of your investment. With these three expert secrets, you can move up your home-buying strategy and make sure that you’re getting the most out of your purchase.