If you’re planning to purchase a bigger home this year, now would be the best time to do so. Over the past two years, homeowners have gained massive equity amid rising home prices.
You might be thinking about how you are going to leverage the value your house has gained. One of the best options is to purchase and move into a bigger home. This would make sense if you are looking to settle in a more peaceful neighborhood and in a larger living space that can accommodate a home office.
Here are a few tips to help you through the process of moving and getting a bigger home.
1. Consider your main goals
Before you can even decide to purchase a bigger home, you must determine if this is the goal that’s worth accomplishing this year. It’s not enough to simply say you are financially ready for a bigger living space which could cost a lot to maintain in the long run. It’s also a matter of looking at your family’s evolving needs as well as other factors. You might consider getting a bigger home if your family is growing or if you need more amenities that fit your lifestyle. You will need to be practical by looking at the long-term value of moving up.
2. Check your finances
Even if you think you have gained significant equity over the past years, it’s still important to check your family finances and see if you have enough to support your move to a bigger home. Right now, home prices are appreciating while mortgage rates start to recover, although at a slower pace. To make the most out of the situation, you must review your financial situation first and check how much money you can shell out before entering the market.
3. Set a good price for your home
Before you get your home listed, it matters a lot to know how much it should sell for. Setting a good price for your property will allow you to gain more cash which you can add to your budget for your next home purchase. There are several tools and methods you can use to get an accurate estimate. A great way to get started is to analyze the average selling price of homes similar to yours. Pay attention to existing listings, just sold properties, as well as expired listings. If you need help with getting an accurate value for your home, you can always visit the Federal Housing Finance Agency and use its House Price Index calculator.
4. Consider your timing
It’s a highly competitive market out there for home buyers, but this high demand for housing could slow down within the year. You might want to act immediately before you miss out on your dream home. If you want to sell a house fast, you might want to negotiate better terms with a motivated buyer. Another option is to find a property investment firm that can give you a good offer on your current home so you can move into your next one without much time to spare.
If you want to take this opportunity to purchase a bigger home for your family, then use these tips and look for one that’s the right fit.