Finance
February 2, 2024
What once felt like a spacious and luxurious space for you and your significant other may now start to feel a bit claustrophobic. Maybe you’ve had a kid or two, adopted a dog, brought home a few cats. Your family is growing, which can mean it’s time to consider upsizing your space.
When upsizing, you’re looking for a larger living space. This is an exciting time for families. With a new space comes new possibilities, new memories to make, and new traditions to begin. However, it can also mean lots of decisions, stress, and logistics to figure out and that can become overwhelming quickly.
When you’re looking for a new and bigger home, there are several best practices to keep in mind. We’ll walk you through the top things to take into consideration before making that big move.
What Are Your Goals?
What are you hoping to achieve in your next home purchase? Do you need more bedrooms? More bathrooms? Is a large yard a necessity? Maybe you specifically want more kitchen space for hosting those large holiday gatherings.
It’s important to go into your home search with a plan and a vision for upsizing and how you see yourself and your family living in this new space.
While it’s easy to fall into the fantasy of having everything on your wishlist in your new home, it’s also important to remain realistic about what you can get based on the market and your budget. Maybe you will have to settle for one less garage space or for slightly smaller bedrooms. While not impossible, be prepared to compromise in some areas in order to stay within your budget, timeline, and the area you want to be.
Determine Your Budget
Now that you have a good idea of what it is you can and cannot live without in a future home, it’s time to consider your budget. In a hot housing market, a property can sell fast and for top dollar. What might have seemed like the right budget a few years ago may need to be revisited with the changing market.
Don’t forget that you are upsizing which inevitably means paying more for more space. Make sure you can afford more space without becoming “house poor,” meaning you are spending a large portion of your total monthly income on homeownership expenses like mortgage payments, property taxes, maintenance, utilities, and insurance. You can take advantage of online calculators or talk with your lender to help you figure out how much you can realistically get for your money.
How Far Are You Willing to Move?
Depending on what you’re looking for, you may not be able to get everything you want without moving a bit further than originally planned. Maybe you want a top school system but the closest option is over an hour away. Maybe you want a big yard but the suburbs are quite the drive from the city you’re accustomed to. Whatever your main priorities are, it’s important to determine how far you’re willing to go to get what you want.
Carefully consider all the pros and cons of relocating further away before packing the moving vans.
Have You Considered All Your Options?
Nowadays, people are looking for all different types of ways to capitalize on the hot housing market. Homes are selling quickly and for prices that are higher than ever before. This can make it feel impossible to find and secure your perfect space. Buyers are feeling the pressure to jump into something before they’re ready just so they don’t miss out.
When your family is growing and things are changing, the last thing you want is to rush into a decision as huge as your next home and your next mortgage. That’s why it’s crucial to look into all of your options before taking the final steps. Here are some alternative solutions that homeowners can use to secure the home they truly want:
- Make Additions or Renovations to Your Current Home: Your home is a special place and can mean a lot to you and your family. The idea of picking up and moving can be a heartbreaking concept. If no other house will do, you can consider making some construction upgrades or adding some additional space to your current home. This can be a costly and time-consuming process but can give you the flexibility you need to create the home of your dreams that will keep you happy for years to come.
- Sale-Leaseback: If you know for certain that your current home will not work for you in the long run, you can take your time looking for your next one. Through a sale-leaseback solution, you can sell your house, freeing yourself of your current mortgage. However, instead of moving out, you can stay in the home as a renter while you search for your next home. You’ll have time to search and more cash in hand to make a competitive offer when the right home comes along.
Are you ready to start the process of upsizing to the home of your dreams but don’t want to rush your next move? Consider contacting a real estate agent or financial advisor to discuss the right move for you.
Key Takeaways
While moving to a bigger house and upsizing can be exciting, it’s important to do your research. Consider your family’s goals, budget limitations, ideal location, and potential financial solutions all before starting your search. When in doubt, an expert can help give you a better idea of an approach to upsizing that will work best for your family and your finances.
