Remember what it was like when you got the keys to your first home? – “This is it OUR HOME! We’re going to love it forever!” Fast forward five years, and you’re finding yourself ogling properties for sale. – “Just curious what’s out there.” Is it a betrayal of love to your first home? Or are these just signs it might be time to move up? While some reasons for moving on to your next abode are obvious, like a growing family or relocating for a job, there are other reasons that can creep up on you like feeling you’ve outgrown your neighborhood or a promotion that gives you financial freedom to upgrade.
It may be surprising to learn that most homeowners, no matter the circumstances, move up from their first home on an average of 7 years. If you’re in your house now 5-10 years, it’s perfectly normal to start to stray. We see clients who start peeking even after just a couple of years in a home. Don’t fear, like a good relationship coach, we’re here to help you with an easy transition from selling your current home to finding your next love.
Here’s how to navigate these common thoughts and questions you may have asked yourself about selling your current home and moving on to your next.
PEOPLE ARE EYEING MY HOME, HOW DO I KNOW IF IT’S THE RIGHT TIME TO LET IT GO?
Did a house on your block just sell for way more than you could’ve ever predicted? Is your neighborhood all of a sudden popping up online as THE place to be? When these signs trigger the slightest inkling to know more about the value and salability of your home and to see what else is out there, call or email us for a chat.
We can help you understand the micro-market around your specific home. We look at the market patterns in the past, pre-pandemic, during, and post shut down, and what the predictions are. We can talk about the seasonality of your specific market, and what to expect as far as how quickly your home will sell and for how much.
I’M NOT GOING TO BREAK UP WITH MY OLD HOUSE UNTIL I FIND A NEW HOUSE, AKA “BETTER OFFING”
You’re probably wondering how much equity you have in your current home, and how to use it to buy a new home. How do you find that forever home if you’re going to have to win a bidding war to get it and you need to sell first? What is a home sale contingency, when is it effective, and is it even an option in the market I’m shopping in?
A Home Sale Contingency is a clause in your purchase contract terms that says “I will be contractually obligated to buy this house if I can sell my home in a certain number of days.” In a seller’s market, home sale contingencies have less success because you will most likely be competing with buyers who can buy the home you want without asking the seller to wait for their home to sell.
We offer tons of advice on the subject of how to transition from one home to another at our free online Home Seller Q and A sessions. Sign up here.
IT’S JUST NOT THE SAME ANYMORE. IT’S NOT ME, IT’S YOU.
Do you remember how flexible the list of must-haves was during your first homebuying experience? You wanted outdoor space but a small balcony would do just fine. You could handle an unfinished basement as long as you had your own washer and dryer. 2 bedrooms was fine, it was just you and the cat. Now you spend half your day walking the doggos to the dog park 2 miles away. You used to grab fresh groceries on your way home from work and hop on the subway. Now you’re driving to the store and circling the block a million times to repark your car. She said she was a reader but now that you live together you realize your girlfriend hates headphones and loves her video games. Guess what? Your must-haves have changed.
The good news is that Philadelphia has so many fabulous neighborhoods to choose from. The surrounding suburbs are anything but sleepy and with today’s rates you can afford double the house for the same price you spent last time. With tax abatements, in some cases, you can get much more space and even lower your monthly payment. Moving from a condo to a single-family can change your life without altering your finances. It’s time to start a new must-have list for your next journey of homeownership!
For example; If you bought a small $250,000 house with no back yard in 2015, put 3.5% down, have PMI, and a 4.75% rate your monthly payment might look like the example on the left below. Assuming 6% appreciation per year, we can sell your house for $335,000. After closing costs, you’ll walk with $70,000 in cash. That’s enough cash to put 15% down on a $530,000 home with a yard and a roof deck and cover closing costs.
So you can see, you can buy double the house without changing your monthly payment. You could even put less money down on something less expensive and clear some debt. There are a ton of options. Let us help you with the costs and numbers, connect you with a mortgage lender that our clients have had an excellent experience working with, and get you on to greener pastures.
SOMETIMES MOVE UP MEANS SCALING DOWN
The pandemic has changed everything. Are you relocating? Divorcing? Multiplying? Shedding? Unemployed? In debt? Condo living provides ease and convenience that can take some of that stress away. Philly has buildings that provide 24-hour doorman service, pools, gym just an elevator ride away, smack in the middle of walkable center city. Perhaps a boutique condo is more your style? A small historic building where you and just a few neighbors self-manage keep the costs down and the drama to a minimum. Either way, your budget is managed as well as your property. Hands off! Mind free! We buy houses in Wichita!