Reasons for buying a new home vary. Perhaps you’d like more square footage (or at least another bathroom!). Perhaps you’d like more amenities or a smaller yard with a more manageable lawn. Whatever the reason for considering your next home purchase, consider the following costs in your financial planning. These may impact the listing price of your existing home.
Prepayment penalty. Check to see if your current home loan has a prepayment penalty for paying off the loan early.
Essential repairs. A leaky roof, faulty pipes, or finicky electrical work will impact the value of your home. Hire a home inspector to uncover potential problems. Consider completing these repairs up front or risk having them whittle down the asking price of your existing home.
First impressions. Low-cost cosmetic changes can dramatically improve first impressions of your home. These might include a few new landscape touches, a fresh coat of paint, or updated fixtures.
Moving expenses. Depending on how quickly your existing home sells and when you close on your next home, you may incur additional expenses. These might include temporary storage for your furniture and belongings. You may also have to rent an apartment or stay in a hotel for a short time.
Timing. The housing market is continually changing. Your listing price may be impacted by the number of properties currently on the market, as well as the types of properties on the market.
Buying your next home signals an important step in your life. Call us today to explore mortgage options that fit your current situation.