When most people buy their first home, they usually consider it a “starter home” and dream of purchasing a bigger and better home one day.
Using the equity you’ve built up in your current home, and depending on your financial situation, a move to an upgraded home may be quite possible, especially given today’s low interest rates. If you’re curious to find out if you qualify for your dream home, ask a realtor to help you calculate carrying costs on a “move up” home.
There are many reasons why you may wish to have a larger home: a growing family, more rooms to accommodate older children or an elderly parent that has moved in. Or maybe you want a larger yard, a garage, or a home with a private driveway. Whatever your reasons, moving up to a new home can be very satisfying.
It can also prove to be financially beneficial. The equity in your home will continue to grow and the value of a bigger and better home will be greater over time. There is also a sense of pride that comes with upgrading your home.
Buy first or sell first?
This is one of the trickiest questions to answer when you are selling one home to buy another. If you purchase your new home before you reach an agreement to sell your current property – and the deal falls through – you could find yourself owning two homes at the same time. On the other hand, if you wait until you receive an acceptable offer on your present home, you may suffer the inconvenience and expense of having to rent a place and store your furniture while you await possession of a new home. A realtor may be able to help you time your sale and purchase to happen on the same closing date – the date that ownership is legally transferred from the seller to the buyer.
When you decide that moving up is the way to go, be sure to enlist the services of a realtor. He or she has the qualifications and expertise required for a smooth sale and is committed to spending the time it takes to help you successfully sell your home and move up to another. Your options can be confusing at times, but a realtor can help you make the right choices.
He or she will help you determine the market value of your current home and therefore the price range you should be considering in a move up home. You’ll need to determine where you want to move. Do you want to stay in the same neighbourhood or move on? There are almost as many considerations on location as there are homes, but a realtor is skilled and knowledgeable in all aspects of a real estate transaction and can ensure you make a smooth move.
Moving up to meet your changing lifestyle and needs can be an exhilarating experience. It may also be the biggest and best investment you’ll ever make. If you decide to take advantage of current market conditions and enhance your investment, be sure to enlist the knowledge and expertise of a realtor who will be able to help you choose the best option.
This article is provided by local REALTORS® and the Ontario Real Estate Association for the benefit of consumers in the real estate market.