Tuesday, May 19, 2009

Should you move up?

The current dip in home prices along with historically low interest rates has some owners considering whether or not now is the time to move up to their next home. Should you?

There is no right answer for everyone when it comes to this question. Instead, there are few things home owners should think about before making this decision:

  • The lower prices that are making homes seem more attractive to you also mean that your home will sell at a lower price than it would have two years ago. If you have owned your home for less than four years and did not put much money down, you might not be able to sell it for enough money to cover your mortgage and closing costs while still having enough to cover moving costs, closing costs for the new home and a downpayment.

  • How much equity do you have in your home? If you have owned your home for a number of years, you might have a lot more equity than you realize. We'll be happy to do a market analysis to see what your home is worth in today's real estate market. Equity can become cash for your down payment, helping you move up without having to increase your mortgage load.

  • Can you afford a larger mortgage payment? Most people move up the rungs of the ladder of home size and expense. You need to take an honest look at your finances to be certain that you can cover the increased costs of the larger home. The current very low interest rates do help buyers purchase more home for the money. However, the increased costs do not only include the mortgage payment. Do not forget to take into account larger property tax bills, home owners insurance rates and, very often, higher utility bills.

  • Is your neighborhood still a good fit? If you live close to work or the children's schools, do you want to move? If your job or lifestyle has changed since you bought your home, you might considered looking at a location that better fits your current needs.

  • Have your outgrown your current home? Has it outgrown you? Empty nesters might considering downsizing to a smaller yet more elegant home. Young families might be looking for something with a larger yard or more bedrooms. Remodeling is sometimes a more perfect solution than moving, but not everyone wants to tackle a remodeling project and not all yards will accommodate expanding a home.

There are many things to consider when thinking about moving up to another home. Give us a call if you would like to talk about your options here in Cheese Country. We would never pressure a homeowner to sell, so do not worry about calling just to talk.

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