You’ll find plenty of online advice for people who are looking to buy OR sell their home, but one of the most frightening situations in which you can find yourself is when you are a move-up buyer. This means that you are simultaneously selling your old home and purchasing a new one, effectively moving up from your current house to one that is larger, more valuable, or simply more suitable for your daily life.Â
Real estate decisions are often a source of stress for most people. You’re dealing with large sums of money and (sometimes) difficult-to-predict time frames, so even small choices can have long-reaching, stressful consequences. In the past, we’ve written about the most common rookie mistakes when selling your home, as well as the 10 mistakes that home buyers make most often. These are great tools for move-up buyers to examine because they are buying and selling a home at the same time. However, there are some mistakes and fears that are unique to a move-up buying situation.
So what makes the move-up buyer process, specifically, so frightening? It’s very easy to make rookie mistakes as a move-up buyer that will leave you in a serious financial predicament — but you can avoid this turnout if you are aware of these common mistakes and make efforts to avoid them.
1.Timing Issues (Not Syncing Your Closings)
When you are involved in a move-up situation, you have to balance the schedules of three groups: the person whose home you are buying, the person who is buying your new home, and yourself.
This is particularly stressful for you as a move-up buyer. Many people in this situation have to deal with the scary situation of choosing whether to buy or sell their home first — and there’s no definitive answer to which is better. In general, however, most move-up buyers want to have the two closings in a short time frame; otherwise, you run the risk of losing both homes — or getting stuck with two houses.Â
There are a few ways to avoid running into timing issues. The most important — and most effective — tactic is to work with an experienced real estate agent. A lot of agents don’t have almost any expertise with the specific concerns of move-up buyers, so make sure you take your business to a team that has a record of move-up buying success, such as the Keri Shull Team!
If your two closings don’t line up the way that you need them too, you could easily run into the second mistake that move-up buyers make…
2. Owning Two Homes
This is most people’s biggest fear when they face a move-up situation, and for good reason. If you fall victim to the first mistake and end up purchasing a home before you sell your first home, it’s possible for the deal on your old home to fall through, leaving you with two houses — and two mortgages.
This can be financially ruinous. Few people have the financial flexibility to pay for an entire extra mortgage, particularly if it comes as a sudden surprise. Though this situation is largely the result of other mistakes that you have made, it can be avoided with proper planning and outside help. Ask your realtor whether they have any sort of guarantee that protects you against this possibility, like the Keri Shull Team’s Move-Up Buyer Guarantee program!
3. Not going through pre-approval for the new home
It is vital that you go through a pre-approval process for the home that you are buying when you are a move-up buyer. There is no guarantee that you will qualify for a loan on your new home just because you previously qualified for a loan on your old home. This is particularly important for move-up buyers, because you will generally be trading up to a home that is more valuable.Â
This mistake usually happens because people are careless — so be sure to take appropriate actions to make sure that you don’t let anything fall through the cracks.Â
The best way to avoid this mistake is to work with a real estate team that has strong connections with local partners. If you are able to work with a group that has these powerful partnerships, you will likely have more flexibility in your loan options — including pre-approval.Â
Take one of our lending partners, for example. Our team frequently works with First Savings Mortgage, who have tons of educational material to help you learn the steps to getting pre-approved and avoiding this costly mistake.
Bonus — #4. Getting Cold Feet!
It’s easy to get scared by the possibilities of buying a new home, particularly when you also want to sell your home for the best price. But one of the worst mistakes that you can make is to get too frightened to do anything at all!Â
That’s not to say that you should jump into this financial decision without any planning. But with the help of an expert real estate team (and powerful tools like our Mortgage Calculator), you can figure out a realistic plan to find and win your dream home while avoiding these costly move-up buyer mistakes!
If you are ready to learn more, then contact the Keri Shull Team today! Make sure to ask about how you can get exclusive Priority Access to our off-market listings — and how they could be the perfect solution to your move-up buying fears!