Is Now the Right Time to Move up to a Bigger New Home?
If it seems that your once spacious home just is not quite large enough
anymore, it could be that you need to trade it in for something bigger.
Oftentimes, many homeowners discover that after a few years in their
starter home, they simply need more space. The reasons could be
numerous. Perhaps you need more bedrooms for the kids or even more space
in the backyard for them to play. Even if there are no children in the
picture, you may simply find that there is not sufficient storage space.
Whatever the reason for the problem, if you are feeling hemmed in, the
solution could be moving up to a larger new home.
Given the current condition of the housing market, many prospective
buyers are concerned that their dreams of a bigger home may not be
realistic. In reality; however, it is actually an excellent time for
many people to go ahead and make the move to a larger property. The
reason actually has something to do with the slowdown of the overall
housing market. It is true that home prices as well as sales have
declined over the past few years. There is also no denying the fact that
your current home may not have quite the same value as it did just a
couple of years ago. Even so, smart homeowners have discovered that the
market could still be in their favor when it is time to move up to a
property that is larger and more expensive.
While you might not get all of the money you would like out of your home
when it sells, there is still a huge inventory on the market and few
buyers who can actually qualify to purchase those homes. This means that
in order for those homes to sell, the price must be right. In numerous
communities around the country, values have slipped dramatically. This
is something that can actually work in your favor.
The larger and more expensive home you would like to have may be more
affordable than you thought. This is because prices on those homes have
dropped as well. In fact, you might even find that the sales price on a
larger home could rival that of your existing home. The simple truth is
that there may not be as much of a price gap between your existing home
and the one you would like to buy as you might have thought.
Furthermore, if you have only been in your home for just a few years,
there's an even better chance that you have built up a sufficient amount
of equity that could be used to purchase a larger home.
Homeowners who purchased starter homes just a few years ago have also
found that the first-time home-buyer credit can be used for their
advantage as well. The credit amounts to $8,000 and can be used for
purchasing homes much like the one that you are probably in right now.
This means that might not take as long as you would think for your home
to sell. You might even end up receiving multiple offers.
Of course, everyone's situation is different so it is important to sit
down and put the pencil to paper and do the math. Avoid focusing on the
difference between the price you can get today versus what you could
have received before the market slipped. Instead, focus on the bottom
line. If you are interested in trading up, keep in mind that the
property you are going to trade-up to is going to most likely sell at a
discount as well. You need to focus on the net.
While many people are interested in purchasing up today because of
growing families, there may be other reasons why you might consider
moving up as well, such as the need to relocate for a job or even the
desire to move into a better school district. Whatever the reason may
be, keep in mind that the competition for homes that are larger and more
expensive is far less than it was a few years ago. Less competition
translates to lower prices as well as better bargains.
In addition, you can also benefit from mortgage rates that are still
quite low. Such low rates mean that the dream home you've had your eye
on could really be quite affordable. Due to the combination of these
factors, larger homes are now more affordable than they have ever been.