avoid when buying a bigger home|
Unlike the experience of buying a first home, when you're
looking to buy a bigger home
and you already own a home, there are certain factors that can
complicate the situation. It is very important for you to consider these issues before you list your home for sale.
Not only is there the issue of
finding a home loan, 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 having no place to live
during the gap between closings.
Here are the 5
most common mistakes homeowners make when moving to a larger home:
1. Rose Colored Glasses
Most of us dream of improving our living
conditions and moving to a larger home. The problem is that
there's a discrepancy between our hearts and our budgets. You
drive by a home or visit an open house that you fall in love with only to find that it's
already sold or more than you can afford or are willing to pay. Most house hunters get caught in this hit or miss strategy of house hunting when there's a much easier way of going about the
process. For example, using a Buyer Priority System, which takes
the guesswork away and helps to put you in the home you desire. This program will cross-match your
home search criteria with ALL available homes on the market and supply you with information on an on-going
basis. This program helps homebuyers see clearly during their
search to find their next home.
2. Failing to make necessary
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 to prospective buyers' perceptions. These fix-ups don't necessarily have to
be expensive. In fact, many of these fix-ups are less than $25.
Many times, making a small investment in showcasing your home will come back to you in a much greater return on your investment.
3. Not Listing First
Your should plan to list and find a
buyer before you enter a contract to purchase another home. This way you will not find yourself at a disadvantage at the negotiating table, feeling pressured to accept an offer that is below-market value because you have to meet a purchase deadline on the home you wish to buy. If you've already listed your home and have a buyer
ready, 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 can always place a contingency clause in the sale contract which gives you a reasonable time to find a replacement home. Ask your Top Rated Agent how this works.
4. Failing to get a
Pre-approval is a very simple process
that many homeowners fail to take advantage of. While it doesn't cost or obligate you
to anything, pre-approval gives you a significant advantage when you submit an offer on a home you wish 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
pre-approved mortgage, your offer will be viewed far more favorably by a potential seller. So much more favorably sometimes, that
a seller may take your offer even though it's a bit lower than
another they received without a pre-approved buyer.
5. Failing to coordinate
With two major transactions to
coordinate together with all the people involved such as mortgage experts, appraisers, lawyers, escrow, Title Insurance, home inspectors, or pest inspectors; the chances of mix-ups and miscommunication go up dramatically. To avoid a logistical nightmare, ensure you work closely with a Top Rated Agent. If you do, you can feel confident that the transaction will be handles efficiently and professionally.
you don't have a Real Estate professional working in your
corner, please contact a competent real estate agent to represent
your best interests. Buying a home is much too important to go