6 Mistakes To Avoid When Trading Up To A Larger Home
Moving to a larger home can be more complex when compared to buying a first home. Here are six common mistakes to avoid when trading up:
- Rose-coloured glasses: Avoid falling in love with a home that may be out of your price range. Instead, use tools like a Buyer Profile System or House Hunting Service offered by your agent to match your criteria with available homes that fit your budget.
- Failing to make necessary improvements: Enhance your home’s appeal by making necessary improvements before listing it for sale. These fixes don’t have to be expensive but can significantly increase the price you can command from potential buyers.
- Not selling first: Plan to sell your current home before buying a new one. Selling first puts you in a stronger negotiating position and allows you to purchase your next home without pressure. If your home sells quickly but you haven’t found a new one, consider adding a contingency clause to your sales contract or explore renting options.
- Failing to get a pre-approved mortgage: Take advantage of a pre-approved mortgage, which provides a clear understanding of how much house you can afford. It also makes your offer more favourable to sellers as you have a green light from your lending institution.
- Don’t get caught in the “Real Estate Catch-22”: Decide whether to buy or sell first. Some agents offer Guaranteed Sale “Trade-Up” Programs, where they guarantee the sale of your current home before you purchase a new one, eliminating the dilemma.
- Failing to coordinate closings: Coordinate the closing of your current home sale and the purchase of your new home effectively. Work closely with your agent to avoid miscommunications and mix-ups among the parties involved, such as mortgage experts, appraisers, lawyers, and inspectors.
By understanding and avoiding these trade-up mistakes, you can make informed choices and navigate the process more smoothly when moving to a larger home.