These are six signs that you’re ready to move up to a larger home.
Does moving up make sense for your situation? Today I’ll share six questions that will help you decide whether you’re ready for a larger home or one in a more desirable location. If you answer ‘yes’ to most of them, you may be ready to move:
1. Have you built substantial equity in your current home? Look at your annual mortgage statement or call your lender to find out. You typically don’t build much equity within the first few years of your mortgage since monthly payments are mostly interest. However, if you’ve owned your home for five or more years, you may have significant unrealized gains.
2. Has your financial situation improved? If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving.
3. Have you outgrown your neighborhood? The area where you buy your first home may not be the neighborhood where you want to settle down for good. For example, you may have realized that you’d like to be closer to your job or live in a better school district.
“Would rather stay where you are or move on to something better suited to your evolving needs?”
4. Are you unable to remodel? You can create a bigger home by adding a room or otherwise building up. However, if your property isn’t large enough, your municipality doesn’t allow for it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best option.
5. Are you comfortable moving in the current housing market? If your market is hot, you may sell quickly and for top dollar. At the same time, the home you buy after will also be more expensive and competitive to acquire. If your market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you look for a new home.
6. Are interest rates attractive? A low rate not only helps you buy a larger home but also makes finding a buyer easier.
Even if you haven’t added a lot of equity to your home, ask yourself this: If your home appreciates by even just one percent, would you rather stay where you are or move on to something better suited to your evolving needs?
If you have any questions about moving up or real estate in general, I’d be happy to speak with you. Just give me a call or send me an email. Hope to hear from you soon!