Does Moving Up to a New Scottsdale Home Make Sense?

Thinking about moving up in Scottsdale? Think about these questions:

1. Do you have enough equity to finance a down payment on a new home? Most conventional lenders look for at least 10% down. FHA will guarantee loans with 5% down.

2. Can you afford a bigger mortgage? Can you afford the expense of moving? Check out this mortgage calculator.

3. Does your current Scottsdale or Phoenix neighborhood still meet your needs?

4. Might it make more sense to renovate your current home than to sell it and buy a new one? Remember that you probably won’t get back 100% of the money you spend on the remodel -- do it for you, not because it will increase your home’s salability.

5. What’s the Scottsdale real estate market like? Will you be able to sell your home for a good price? Will you be able to buy a new Scottsdale home for a good price?

6. Are interest rates relatively high or low? How might they change in the near future? Interest rates are still at historic lows. In that respect at least, now is a great time to buy a Scottsdale home.

In addition to answering those six questions, Phoenix home owners should think about the soon-to-expire home buyer tax credit, which offers $6,500 to home buyers who have lived in their current home for 5 of the last 8 years. Your income must be below $225,000 and you have to sign a binding purchase agreement by April 30 (then you have to close escrow by July 1).

Read more about the pros and cons of moving up in Phoenix and Scottsdale on my latest blog, Does Moving Up to a New Scottsdale Home Make Sense?