Moving on Up: A Look at “Move-Up” Buying

As life changes and evolves, so do your housing needs. While you were thrilled when you purchased your first home, you may find that after several years you’ve outgrown it… and you can’t wait to upgrade to a home more suited to your lifestyle and needs.

Whether you’re looking for a larger home for your growing family or a home that will land you in the neighborhood of your dreams, if you’re questioning the home you currently live in, you may be ready to “move up” into your next North Houston.

The process of selling one house to buy a more expensive one, there are many advantages to moving up.  However, while moving up can be enticing, there are a few things we recommend you consider when making the decision:

“How much equity is in my home?”
A huge advantage of moving up is the ability to sell your current home before you buy the new one.  This allows you to use a portion of the equity towards the purchase rather than looking to your bank account- a huge benefit when it comes to the down payment.

To find out how much equity is in your current home, you’ll need to first find the value of your home, then subtract the amount you owe. For example, you owe $200,000 on a home you’ve owned for five years. You originally bought the home for $250,000 and the value has appreciated to $275,000.  In this case, your current equity would be $75,000.

“What is the market like in my area?”
Because prices of homes for sale in North Houston can widely vary within different parts of the area, your home may sell for significantly more or less than the price you originally paid. If you want to use the equity of your home for the down payment on a new home, it’s a good idea to connect with a local Realtor who can help you understand what the housing market is doing in your area of North Houston.

“How much will selling my home cost?”
Every home sale is different, with some homes requiring almost no preparation to sell and some requiring a ton of preparation (and money). Aside from what it will cost to prepare the home for the market, you’ll want to plan for real estate commissions, which can go up to 6% of the selling price.

“What will the selling price of my home be?”
There is no way to be certain how much your home will sell for, however, a North Houston Realtor can provide you with a market analysis of the selling prices of similar homes in your area. This information gives both the agent and the seller a good idea on the possible pricing of a home.

Once you’ve decided that moving up is the right choice for you, your KW Professionals Realtor can help you find the next home to suit your needs. Along with our knowledgeable agents, access to technology, and excellent client support, we’ll help make selling your current home and buying your next home a rewarding process.