Everybody has their idea of a Dream House. They have this clear picture in their head of how it looks – from the lot area, theme, interior design, down to the tiniest details.
So, what happens when one day, while you’re going on with your daily activities, then, all of a sudden, you catch wind of a house that just came on the market?
You might realize you are now staring at your dream house.
Should you jump on ahead and start packing your stuff and get ready to move up to your dream house? Or should you take a moment to prepare your current place to be put on sale?
This whole thing of buying and selling first comes a lot when someone has a home that they need to sell, and they want to buy a new one.
We have listed three critical things to help bring clarity to the confusion around making your next real estate move:
1. Understanding the Market
Many people get surprised by the opportunity to move up. However, many things come into play before one can finally set foot on their dream house.
It starts with a goal in mind. It is essential to understand the situation that people are buying into and the situation that they're selling from.
Understanding the market is of prime importance. Knowing the general buyer's market, seller's market and the balanced market is beneficial.
They need to find out if more people are looking for homes than what's available or the opposite, more houses than people looking. It all just comes down to supply and demand.
Sometimes, people can buy in a buyer's market, and they've sold in a seller's market where it was better for them. Others do the opposite where they're buying, in a seller’s, and selling in a buyer's market.
Also, one consideration is the months of inventory.
See how many options are available in that community, or similar to that house in the area, because sometimes it can transcend communities.
People should look at what's going on with their purchase and the sale of their house.
2. Understanding Your Finances
In deciding whether to buy or sell first, two characters always come into play - the person who wants to get the sale done before anything else and the person who’s seemingly living in the new one, even though they haven't bought it yet.
You might've moved into your current home at some point, and it was great. Now you can see that it could make a fantastic rental moving forward. Pulling that money out, if there's equity would be great.
You should consider if you are willing to purchase and carry the house you’re in right now. Maybe you want to start building a real estate empire.
You might want to buy one and rent the one. And eventually, become a real estate kingpin with lots of rentals.
For the people who need to sell, you have to look at the months of inventory.
You have to identify what is unique about your house that will appeal to a lot of people.
Maybe the community has a lot of options for sale. And even though things are selling well, your house might not rank as the top option at that particular price point in the community.
You just have to see all sides of the picture.
3. Understanding Who You Are
A critical question to ask before you do anything is, “why exactly are you making this move, and what is important to you in the next stop?”
Analyze if the house matches what's going to work for you in the long run. You have to understand who you are and who you're going to become, and what your family will look like.
Are you starting to have kids? Are your kids getting older? What life stage are you in? Everyone goes through life-changes every five to seven years.
For example, a lot of people get married. Around that five-year mark, they will have a kid. Then around five years later, they are going to school. Five years later, another kid is going to junior high. In the next five years, they're heading into graduation and set for college.
And at some point, things are getting a little tight in the house, or it isn't meeting the family’s needs anymore. It’s pushing the family to move forward and transition into a new home.
There are lots of opportunities for people to move up.
Does that house that you've fallen in love with check the boxes that you need aside from just an emotional attachment?
Before you sign the check or file any document, you have first to understand the market.
Understand your finances. Most importantly, understand who you are.
If you are befuddled, a house shows up, and you have questions, please let us know. We want to help you transition properly through this whole process. Reach out to us; you can always email us at email@example.com.