Many buyers in today’s modern market are move-up buyers. A move-up buyer is selling their current home while simultaneously looking to buy a new one. While the term “move-up” buyer implies buying a bigger home, this is not always true. Certainly, many move-up buyers are looking for bigger homes to accommodate a growing family or to signal greater financial status. However, some move-up buyers may be looking to downsize after finding a home too big to maintain and care for. Regardless of these differences, many move-up buyers encounter difficulties timing the sale of their old home in conjunction with purchasing a new one.
The ever-changing nature of the real estate market makes it difficult to guarantee which half of the move-up buyer experience happens first. Ideally, one would buy their new home first to smoothly transition into it and clear out their old home without hassle. However, doing this requires a buyer to have the necessary funds for that new home already in place. Many move-up buyers rely on the money from selling their old home to buy in the first place, which makes this difficult. Few sellers are willing to sell to someone who does not currently have the necessary money, even if they would theoretically make enough profit to afford a property after completing their own sale.
This issue means that many move-up buyers list their house on sale before having their new property completely closed and ready. While a seller might hope that their home will sell quickly to afford their new home, the timing of a sale is not guaranteed. Whether or not these homes finish selling quickly depends on the type of neighborhood they are situated in, as well as the current state of the real estate market. It is best to consult a real estate professional to help manage these situations, such as contacting Kho and Young.
Additionally, a move-up buyer should understand what they want from a new home well before listing their property for sale. When compiling a wishlist, it is important to understand what budget you are working with. Generally speaking, it is best to assume the baseline of what you can spend is equivalent to what you can sell your home for. If you have any extra funds for this purpose, add those to your home’s value to gauge what price range you can safely afford. While loans are always available, it is important to remember that you will likely be moving into a home with higher property taxes, utility costs, and a larger down payment. All those costs can add up fast, and it is best only to take out what you can later pay back.
If you are a move-up buyer looking to sell your old home for a new one, contact Kho and Young, where we can assist you on either side of this process. Our expertise will make sure you and your home are in safe hands.