6 Mistakes To Avoid When Trading Up to a Larger Home

".....you have to sell your present home at exactly the right time in order to avoid either the financial burden of owning two homes or, just as bad, the dilemma of having no place to live during the gap between closings...."

Unlike the experience of buying a first home, when you’re looking to move-up, and already own a home, there are certain factors that can complicate the situation. It’s very important for you to consider these issues before you list your home for sale.  

Not only is there the issue of financing to consider, but you also have to sell your present home at exactly the right time in order to avoid either the financial burden of owning two homes or, just as bad, the dilemma of having no place to live during the gap between closings.

Six Strategies

In this report, we outline the six most common mistakes homeowners make when moving to a larger home. Knowledge of these six mistakes, and the strategies to overcome them, will help you make informed choices before you put your existing home on the market.

1. Rose-colored glasses

Most of us dream of improving our lifestyle and moving to a larger home. The problem is that there's sometimes a discrepancy between our hearts and our bank accounts. You drive by a home that you fall in love with only to find that it's already sold or that it’s more than what you are willing to pay. Most homeowners get caught in this hit or miss strategy of house hunting when there's a much easier way of going about the process. For example, find out if your agent offers a Buyer Profile System or House-hunting Service, which takes the guesswork away and helps to put you in the home of your dreams. This type of program will cross match your criteria with ALL available homes on the market and supply you with printed information on an ongoing basis. A program like this helps homeowners take off their rose-colored glasses and, affordably, move into the home of their dreams.

2. Failing to make necessary improvements

If you want to get the best price for the home you're selling, there will certainly be things you can do to enhance it in a prospective buyer's eyes. These fix ups don't necessarily have to be expensive. But even if you do have to make a minor investment, it will often come back to you ten fold in the price you are able to get when you sell. It's very important that these improvements be made before you put your home on the market. If cash is tight, investigate an equity loan that you can repay on closing.

3. Not selling first

You should plan to sell before you buy. This way you will not find yourself at a disadvantage at the negotiating table, feeling pressured to accept an offer that is below market value because you have to meet a purchase deadline. If you've already sold your home, you can buy your next one with no strings attached. If you do get a tempting offer

on your home but haven't made significant headway on finding your next home, you might want to put in a contingency clause in the sale contract which gives you a reasonable time to find a home to buy. If the market is slow and you find your home is not selling as quickly as you anticipated, another option could be renting your home and putting it up on the market later - particularly if you are selling a smaller, starter home. You'll have to investigate the tax rules if you choose this latter option. Better still, find a way to eliminate this situation altogether by getting your agent to guarantee the sale of your present home (see point number 5 below).

4. Failing to get a pre-approved mortgage

Pre-approval is a very simple process that many homeowners fail to take advantage of. While it doesn't cost or obligate you to anything, pre-approval gives you a significant advantage when you put an offer on the home you want to purchase because you know exactly how much house you can afford, and you already have the green light from your lending institution. With a pre-approved mortgage, your offer will be viewed far more favorably by a seller - sometimes even if it's a little lower than another offer that's contingent on financing. Don't fail to take this important step.

5. Getting caught in the Real Estate Catch 22

Your biggest dilemma when buying and selling is deciding which to do first. Point number 3 above advises you to sell first. However there are ways to eliminate this dilemma altogether. Some agents offer a Guaranteed Sale Trade-Up Program that actually takes the problem away from you entirely by guaranteeing the sale of your present home before you take possession of your next one. If you find a home you wish to purchase and have not sold your current home yet, they will buy your home from you themselves so you can make your move free of stress and worry.

6. Failing to coordinate closings

With two major transactions to coordinate together with all the people involved such as mortgage experts, appraisers, lawyers, loan officers, title company representatives, home inspectors or pest inspectors the chances of mix ups and miscommunication go up dramatically. To avoid a logistical nightmare ensure you work closely with your agent.

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Michael Call
Michael Call Realty

18682 Beach Blvd. #165
Huntington Beach, CA 92663
Phone: 714-791-1102
Email: onecall4all1@verizon.net
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Testimonials

"It is my pleasure to write this letter of recommendation for our realtor Mr. Michael Call. Michael was instrumental in helping us purchase a new home in Huntington Beach, California. Michael is from Huntington Beach and he possesses extensive knowledge of the neighborhoods and schools in Huntington Beach as well as in many of the surrounding cities. Having come from Phoenix Arizona, we had no idea which neighborhood would work best for our family, but Michael took the time to show us several great family neighborhoods with amazing schools. He also showed us many homes in these areas, but never rushed us. Instead he carefully listened to what we liked and disliked from each of those homes until he was able to find us the perfect home. In fact, it was Michael’s history as a great realtor in Huntington Beach that helped us locate our new home. Michael is well organized, creative, and he is constantly looking for ways to help his clients find the home of their dreams. With all of his real estate skills and knowledge however, Michael’s greatest assets are that he is patient, thoughtful, a great listener, and an advocate for his clients. He is the only realtor that I have worked with who took the time to call the home warranty company when our furnace stopped working and he personally saw to it that we were reimbursed for repairing the furnace. Michael has an excellent understanding of real estate practices in California. Michael has impeccable character; he is intelligent, honest and extremely hard working. It is my opinion that Michael Call is a person who is very proactive, and he has the ability to help you find and purchase an amazing home. It has been a wonderful experience to work with Michael Call and I will not hesitate to recommend him to others looking for a new home in Southern California." Cean R. Colcord Ph. D.
"Michael Call did an excellent job selling our home. He came to look at the home before it went on market, made recommendations which we followed through with and within that week of listing we had an offer. Once the process began, Michael was very diligent in tracking all aspects of the sale. He made sure all items got into escrow, let us know when items where due and followed up quickly on any questions or requests that were made. He continually checked in with us to make sure the process was going smoothly. Michael always responded to any email and/or voice mail that was sent very quickly. We highly recommended using Michael for your home purchase or sale, knowing he will do an excellent job for you." Danielle & Greg Winchell
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Michael Call | 714-791-1102 | Contact Me
18682 Beach Blvd. #165 - Huntington Beach, CA 92648
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