Thinking of moving up? Questions to ask before you make that decision

You might have read my previous post about the $6500 tax credit available to the existing home owners. If you and your family are thinking about grabbing the opportunity put your thoughts on brakes and evaluate your decision before you set the sign on the front yard!

Hmmmm just the thought of moving up makes you start dreaming about your next perfect home. Before you jump on band wagon you need to evaluate your and your family needs prior to making the decision. Just like when you purchased our first home there will be a must have list!  Good news is this time you know what it takes to be a home owner and what to expect out of the home ownership.

a. Why do I need to move?
Very basic and simple questions to ask yourself. Does my family need more space, a bigger yard, school district, closure to family & friends/work...their can be many reason. Justify the reason why at this moment in your life you need to move.

b. How will this move improve your family or your living?
Simple yet this will help you define why you need to move. For example as we all know DC metro has one of the worst traffic in the country, how will your move affect your commute time? 

c. What do I dislike about my current home?
This will help you in understand the area/ style of home you want to move and what you must have in your next home. For example: I am working with a family that lives in a townhome,  like any average family they have 2 kids and themselves living in the home. They love to entertain but due to lack of space they have to cut short on the list of people they can invite plus both the kids sleep in their rooms so extra space for an overnight guest. So they needed a large space either by moving up to a single family home or a bigger townhome. Another young couple I am working with are planning to have a baby and they have a condo which is barely 800 sq. ft. It is in a great location but too small to raise a family. So sit down with your family and make a list of what you would like to have in your next home.

d. Where do you stand financially?
Very obvious questions but the most important question to ask yourself. How much will you net from your current home, what is your current job situation, immediate future expenses like planning to start a family or your kids are going move out or elderly parents are going to live with you ...how do you stand on your financing. How much additional funds you will need to buy your next home, cost of selling the current home and so on. Turn to professional lender, accountant for advise.

e. Buy first or sell first?
Yet, another very important question to analyze. Speak to your Realtor and lay out your strategy on what works best for you and your family in your local market. In Northern Virginia area we are facing a challenge of low inventory this may give you an upper hand in negotiate a rent back period or home of choice contingency.

f. Can you close the expense gap?
This ties in with the previous questions how do you stand financially. Can you afford the upkeep of your new home?  With larger home or land comes additional cost like higher mortgage, utilities, tax bills, repair cost and so on . If you are taking a large amount loan how will that affect your daily life and savings.

Meet up with a Realtor and a qualified lender to understand where you stand on your current home and evaluate the market for you. $6500 will only stretch that far!

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