5 Mistakes to Avoid When Trading Up
When you’re looking to move-up and already own a home there are certain factors that can complicate the situation. It’s very important for you to consider these issues before you list your home for sale.
When trading up to a larger home, issues to consider include:
- having to sell your present home at exactly the right time in order to avoid either the financial burden of owning two homes, or
- the dilemma of having no place to live during the gap between closings.
Below are the five most common mistakes homeowners make when moving to a larger home. Knowledge of these 5 mistakes, will help you make informed choices before you put your existing home on the market.
Mistake #1: La Vie en Rose
Most of us dream of improving our lifestyle and moving to a larger home. However, one must beware of the foolishly optimistic sense where everything appears rosy and cheerful. The problem is the discrepancy between our hearts and our bank accounts. It happens. You fall in love with a home only to find out that it’s priced over your max budget, or that it has already sold. Most homeowners get caught up in this hit or miss strategy of house hunting. What if I told you there was an easier way to find your forever home. My Buyer Access Direct program is a profile system, which takes the guesswork out of house hunting. This program will cross-match your criteria with ALL available homes on the market and supply you with information on an on-going basis. It will help homeowners take off their rosy-colored glasses and get them into their FOREVER home in an affordable way.
Mistake #2: Failing to make necessary improvements
When selling your home, there will certainly be things you can do to enhance your property. Get a home inspection before listing your property for sale. This will give you an idea of the type of repairs the buyer will request be made or the dollar amount buyer will request in the form of a seller credit. It’s very important that you make any needed improvements before you put your home on the market, so buyer’s are unable to use it as a negotiating tool to lower purchase price. Most of these fixes don’t have to be expensive, but if you do have to make a costly upgrades, it will come back to you ten-fold in the form of sales price.
Mistake #3: Not Selling First
Plan to sell before you buy. You don’t want to find yourself at a disadvantage at the negotiating table, feeling pressured to meet a purchase deadline. If you have already sold your home, you can buy your next home without any contingencies. A must in a seller’s market with low inventory. If your in a situation in which your home is not selling as quickly as you anticipated (sit with your agent and review his marketing plan), another option could be renting your home and putting it up on the market later. If you must buy another home before you sell, we set a plan for your success during our first meeting.
Mistake #4: Failing to get a pre-approved mortgage
Pre-approval is a very simple process that many homeowners fail to do. When you put an offer on the home you want to buy, It gives you a significant advantage in the following ways:
- First, you know exactly how much house you can afford.
- Second, you have a green light by a financial institution.
Don’t fail to take this important step. If you don’t already have a preferred lender, I would be happy to connect you with one of the trusted partners I work with on a regular basis.
Mistake #5: Failing to coordinate closings
When coordinating two simultaneous closings, the probability of mix-ups and miscommunication increase. If you want to avoid a logistical nightmare, higher an agent who will work diligently and carefully to coordinate all the major and minor details of your transaction and closing.
