Over the years, my husband and I have owned many homes, so much so that our home address was often written in pencil in family address books. We’ve lived in some homes for as long as 17 years and others for as short as four months. We’ve moved up, down, and sideways—living in homes we completely renovated while residing in them, built from the ground up, or bought “off the shelf.”
So, who better to outline the process of moving up with you than me?
The joke in our family is that moving was the only way to get our kids to clean their rooms. But moving up comes with a lot to consider—it can be stressful, time-consuming, and costly. Ask yourself if you can handle the extra workload, stress, and expenses. Will your children be changing schools? How will that affect your family dynamic? Are you moving closer to or further from family and friends? These are big questions that will impact your life. While moving up is stressful, it can also be incredibly exciting. That excitement and anticipation should outweigh the stress.
If you’ve lived in your current home for a while, there’s a good chance you’ve built up equity—congratulations! You must have had a very smart realtor! Here’s a real estate fact I live by: You make your money when you buy, and you collect your money when you sell. So, pat yourself on the back for buying right and building up equity. I’m always preaching about “future location,” and I recognize that this can be a big factor in purchasing smartly.
In a perfect world, your income has also increased—hooray! That extra income will boost your buying power, cover the cost of moving, and maybe even leave room for some new furniture. Go ahead and check out your buying power, but make sure you closely examine your budget and expectations. Don’t bite off more than you can chew. The goal is to move up to a better home, not to overextend your wallet.
Low interest rates allow you to get more home for your money and make it easier to sell your current home. Right now, the market is hot—homes are flying off the shelf. That’s in your favor, and you should be able to get top dollar. However, top dollar doesn’t mean setting an arbitrary price and expecting to get it. It means getting the highest price the current market will support. Some sellers get too enthusiastic with pricing, which can cause unnecessary stress. It’s vital to know the true value of your home, so gather reliable information to avoid basing your move on inaccurate data.
Another option to consider is remodeling. If your current neighborhood is perfect for your family, staying put and remodeling might make more financial sense. Just be careful not to over-invest in your home. Remodeling budgets can easily spiral out of control. Make sure you have plans, estimates, permits, and a large bottle of aspirin on hand—renovations can be a source of many headaches. Expect delays and surprises, but if the end result meets or exceeds your expectations, it will have been worth the effort.
Finally, don’t forget to explore the possibility of buying new. A new home offers plenty of advantages, so take the time to check out some model homes—with your realtor, of course.
This is Mary Lou Ciambriello wishing you a smooth and profitable move up!
A Few Tips for Remodeling
- Plan Thoroughly: Determine what you want to achieve—more space, updated style, increased home value, etc.
- Create a Budget: Set a budget and stick to it, allowing for a 10-20% contingency for unexpected costs.
- Get Permits: Ensure your remodel complies with local building codes.
- Hire the Right Professionals: Write everything down, including project scope, costs, materials, and timelines.
- Focus on High-Impact Areas: Prioritize areas like kitchens and bathrooms for the best return on investment.
- Remember Curb Appeal: Exterior improvements, such as landscaping, painting, and a new front door, can greatly enhance your home’s value.
- Consider Energy Efficiency: Opt for updates that will save on utility costs and boost your home’s eco-friendliness.
- Allow Extra Time: Delays are very common, so be prepared.
- Think Resale Value: Choose updates that will add value to your home for when it comes time to sell.
- Stay Organized and Keep Good Records: Track all expenses, contracts, and communications for future reference.
- Be Flexible: Plans will change—adaptability is key.
