Deciding if You Should Stay in Your Current Home or Move Up

Between record low interest rates and price reductions, many homeowners are asking themselves if now is a good time to move up.

Buying under today’s conditions can mean getting more home for less money. You’ll pay a smaller amount of interest over time and can snag that dream home for a fraction of its boom-era price. In addition, with the large number of distressed homes on the market, you may even find a home at a steep 10 to 20 percent discount.

However, before you start mentally decorating that dream home, you should consider what “moving up” means to you. For some, it means moving to a better neighborhood. While for others, it means a larger home with more amenities or space.

Here are five pertinent questions every home buyer should consider before making the move:

First, where do you stand on equity? In basic terms, equity is the difference between what you owe and what your home is worth. You might already know the amount, but if not, you can always call your lender to get an idea.

Despite recent declines in home prices, with some areas having steeper declines than others, if you’ve lived in your home for over five years, you may have built a considerable amount of equity. Equity gives you some breathing space during the selling process. You can rest a bit easier knowing that you will sell for a profit instead of a loss.

Second, what is your financial situation? Some jobs are more steady and stable than others. For instance, you don’t want to take on a new financial burden if you think your company might be downsizing. Or are you a two income household? What would happen if one of you were to lose your job? Also, it’s very important to ask yourself, can you really afford to move up? This means having at least 20 percent to put down, being able to pay off your current mortgage, and not needing to touch your retirement funds to make the new purchase.

Third, are you willing to move in a market with home price still declining? Yes, you might be able to get into your dream home, but you might also see your new home’s value decline in the months and years to come.

Fourth, what are homes prices, similar to yours, in your current neighborhood? You may want to get a comprehensive market analysis to find out the current value of your home as well as the specifics on your neighborhood competition.

Finally, narrow down your real reason for wanting to move. For instance, are you an empty nester and want to simplify life by downsizing? Or, on the flip side, have you and your family outgrown the home you’re living in now? Or do you want to move to a newer neighborhood? You need to really think about what you want and why. You want to make sure that it’s for the right reasons.

Claudine Messika, a luxury broker specializing in Palm Springs Homes for Sale, Ca says ” Now is the perfect time to buy a move-up home. Rates are at historical lows and sellers are willing to work with buyers again.”

While there are some great deals out there, it ultimately has to make good financial sense all the way around.

For more information call Colleen Kulikowski

(716) 650-0051

Thinking of selling your Western New York home? Interested in finding out the current market value of your single family home, condo or investment property? Then call www.BestBuffaloHomes.com at (716) 650-0051 to discuss what is happening in today’s Western New York Real Estate Market. We would be happy to give you a personalized Comparative Market Analysis for your home or assist you to purchase a home. View additional WNY Market Area Statistics here.

What about one of these homes?

 

All Statistics are gathered from the Buffalo Niagara Association of REALTORS®.
Properties found on this Web site may be listed with a brokerage other than the owner of this site and are displayed here via the Internet Data Exchange (IDX) system of this broker’s MLS. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing nor displaying broker shall be responsible for any typographical errors, misinformation, misprints, and shall be held totally harmless. © 2014 Western New York Real Estate Information Services (WNYREIS), LLC. All rights reserved.
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All Statistics are gathered from the Buffalo Niagara Association of REALTORS®.
Properties found on this Web site may be listed with a brokerage other than the owner of this site and are displayed here via the Internet Data Exchange (IDX) system of this broker’s MLS. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing nor displaying broker shall be responsible for any typographical errors, misinformation, misprints, and shall be held totally harmless. © 2014 Western New York Real Estate Information Services (WNYREIS), LLC. All rights reserved.


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