Let's talk about three strategies for the move-up buyer!
Hi, I'm Danielle Scott with Keller Williams Realty. Moving up to your forever home is exciting. When you bought your first place, chances are you were young, strapped for cash, and prepared, if not warned, to make some concessions. Now the move-up buyer typically has some savings and home equity to work with, making this next move feel less like a compromise and more a thoughtful selection, however move-up buyers face their own set of challenges that call for a carefully considered strategy. Here are three options for the smart move-up buyer with a plan.
Strategy number one, sell first. The sell first strategy is ideal for the move-up buyer who can't afford to pay two mortgages simultaneously. Selling your home first eliminates the risk of having to carry two mortgages if you don't sell your existing home in time. It also reduces the chances of having to reduce your asking price in the interest of speeding up the sale. This is a good option for move-up buyers who are banking on the proceeds of their sale to fund their new, and likely more expensive home. By selling first you'll know exactly how much money you have to purchase your next home.
Strategy number two, buy first. If homes in your area of choice are selling faster than the for sale signs can hit the front lawn, the buy first strategy might be the way to go. By buying your new home before selling your old one, you won't feel rushed into settling for a less than ideal home or having to seek alternative temporary housing options while you shop the market. This move-up buyer still lives in their existing home, allowing time to shop around and continue looking until they find that perfect place. It's important to note that this buyer should be financially comfortable and qualified to carry two mortgages for the time between buying a home and selling their current home.
Strategy number three, time and align. When all is said and done, this move-up buyer approach is the most ideal, but getting there is another story. Aligning your purchase and sell closing dates can be tricky, remember that there are three dancers in this tango, you, the person you're buying from, and the person you're selling to. You'll also have to move out and move in on the same day. In this scenario, time is your best friend and flexibility is your savior. This means you've planned ahead, you've researched neighborhoods, gotten pre-approved for a mortgage, and you started the organizing and decluttering process before the big move.
The right move-up buyer strategy depends on a number of factors, such as your financial situation, current housing market conditions, your personal comfort level and personality. Consider all of these when making your decision. Plan ahead and work with a pro to ensure a smooth transaction on both sides of the bargaining table. If you have any questions on buying and selling, please reach out.
And remember, when you do what you love, people love what you do. I'm Danielle Scott, let's make it a great home buying and selling day.