Are you feeling like the walls are closing in on you? Does your home that seemed PERFECT when you purchased it now feel like it’s bursting at the seams? The questions to ask yourself before buying a bigger house.
Ready for a bigger home?
Whether it be a growing family, a need to work from home, or just a general desire for more elbow room, there are many reasons you may be considering “moving up” in today’s market.
Deciding whether NOW is the time to make a move can seem complicated, but asking yourself a few simple questions can often help you determine whether a change of address makes sense. Here are my top five quick questions that can help bring you clarity:
How much equity do you have in your home?
First, call your mortgage company and ask for a PAYOFF QUOTE. That will tell you how much you owe on your home if you were to pay it off today (or within a certain amount of days).
Then, call a trusted Realtor® to request a CMA, or Comparative Market Analysis, to show you how much your home is worth in today’s market.
Ask your Realtor® to create a Seller’s Estimated Net Proceeds Worksheet to calculate how much money – after all associated costs of the home sale—you would receive. Is this enough money to cover a down payment on a new home? Is it enough to help cover your moving expenses? With property values in the Kansas City area on the rise, the answer might be a pleasant surprise!
Are you making more money or do you have less debt?
Perhaps you’ve received a significant pay increase since you purchased your current property, or maybe you’ve paid off those credit cards or student loans.
If you find yourself spending more money on “stuff” that you don’t need, ask yourself if you’d rather be using that expendable cash on building equity in a new home.
Make a list of where you are spending your money monthly, then decide if reallocating your income could get you into your dream home!
Creating a budget, and sticking with it, are the first steps to take before you buy a home. That way you don’t overspend once you find your house.
Is your neighborhood no longer a good fit?
Maybe being within walking distance of bars and restaurants made perfect sense when you purchased your home, but now you are considering paying for private schools because you don’t care for the district in your area. That’s a concern in some Kansas City neighborhoods.
Maybe your job or work location changed, and you’re making a long drive to work. Would a new home in a new neighborhood improve your quality of life, and potentially save you time and money?
If your house sold FAST, are you ready to move?
This one can be a head-scratcher. In today’s hot SELLER’S MARKET, it’s not uncommon for homes to sell within days of hitting the Kansas City market. Do you know where you want to go?
If you’re worried about not being able to find the perfect resale home right away, would you consider building a house? New construction options are popular with home buyers, today, and offer a solution in this low inventory housing market.
Would you qualify to purchase another home, without selling your house first? These are all options a good Realtor® can help explain to you.
Do today’s interest rates make sense for you?
Incredibly, interest rates remain at historic lows. If you haven’t refinanced your home recently, you may end up with a lower or equitable house payment—even if you are purchasing a more expensive property!
Talk to a qualified mortgage lender or check out our mortgage calculator to see what that new house payment will be, and even more importantly, to get preapproved to purchase, so you’re ready to write an offer when you find the perfect property!
Deciding whether the timing is right to make a move is a very personal one. A little soul searching and expert advice can help you decide whether to start packing or to stay put for a while. Let us know how we can help!