As your family changes, you might realize that your current home is simply not working for you anymore. Whether you are cramped for space or simply have changing needs, upsizing is often the obvious solution.
But is it right for you?
While purchasing a bigger house can be exciting, especially if you have been renting, it is a significant commitment. Since 32% of homebuyers are purchasing for the first time, it might seem like there is too much information out there. Fortunately, you can aid your decision by asking several simple questions. In addition to working with a realtor, you can use the answers to these questions to guide your choice.
1. Why are you choosing to upsize?
You want to ensure that you are purchasing a larger home for the right reasons. You might need to buy a home because you are having children, taking care of an older relative, or you simply need more space. While there are many legitimate reasons to want a larger home, you want to make sure that you know yours clearly. This way, you can keep your purpose in mind while looking at homes.
2. Will you qualify for a loan?
Many people take out a loan to help them afford their homes. Before you even begin the home search, you should check how much you qualify to borrow. This number could help you determine whether now is a financially responsible time to purchase or if it would be best to wait.
3. Can you afford renovations and maintenance?
Remember that home-buying expenses involve more than just the initial purchase. You might decide to renovate the home, and the house will certainly require maintenance. Check whether you can find these expenses in your budget, and consider additional logistical expenses as well. For example, 98% of private residences are in permit-issuing places, so permit expenses may apply to larger scale renovations.
4. Are there other benefits of switching homes?
When upsizing your home, you are likely switching locations as well. Consider the other pros and cons that come with making a move. Factors may include the school district, neighborhood, proximity to a city or town, and distance from family. Make a list of what a move could help or harm.
5. Does the housing market support your choice?
Work with a realtor to analyze the current housing market. Depending on your budget, you may need to wait for the right moment to house hunt and make an offer. While it can be tedious, the wait is often worth it.
While there are many reasons to upsize your home, remember that this decision is unique to your family. If you are taking actions that will benefit your family, you are more likely to be happy with your choice. The decision to move is significant, but by taking your time to weigh all of your options, you can continue to build a better future for your family.