Move Up Buying and You
As your life changes over time, so do your housing needs. You may find that you are ready to upgrade to a home space more suited to your lifestyle and family needs. If you’re looking for excellent schools, a relaxed location, and family fun, you may be ready to move up in the Boerne area. Whether you’re building a family, a house, or a business venture, Boerne offers an excellent environment to settle down long-term. With today’s affordable home prices and low mortgage rates, there has never been a better time to do so.
One of the advantages of being a move up buyer is that if you sell your current home before you buy the new one, you can use a portion of the equity towards the purchase. This could be a huge benefit when it comes to the down payment. Instead of looking to your bank account for the down payment money, you can look to the net profit of your home.
Although moving up can be enticing, there are a few things you need to consider when making this decision:
How much equity is in my home?
To find out how much equity is in your home, you will need to find the value of your home and subtract the amount you owe. Let's say, for example, that you owe $90,000 on a home that you have owned for five years. You originally bought the home for $120,000 and the value has appreciated to $135,000. When you bought the home, you put $20,000 down. In this case, your current equity would be $45,000.
What is the market like in my area?
The prices of homes can widely vary within different parts of a city. Based on the housing prices in your area, your Boerne home may sell for significantly more than you bought it for, less than you bought it for, or somewhere in between. If you want to use the equity of your home for the down payment on a new home, it is wise to understand what the housing market is doing in your area of Boerne.
How much will selling my home cost?
In order to sell your home, you may need to invest in structural or cosmetic upgrades to make it appealing to buyers. Additionally, you will want to plan for real estate commissions, which can range from 4% - 6% of the price your home sells for.
What will the selling price of my home be?
While there is no way to tell how much your home will sell for before it sells, a Boerne Keller Williams REALTOR® can provide you with a market analysis of what homes have sold for in your area and can advise you on what to price your home at. Whether assessing the value of a Boerne luxury neighborhood, acreage value, or proximity to downtown attractions, your knowledgeable REALTOR® will help you understand the details of the Boerne housing market. You will want to make sure your home is priced realistically so that it will sell faster!
Once you’ve decided that moving up is the right choice for you, you can find a Keller Williams REALTOR® to suit your needs. Along with our knowledgeable agents, access to technology, and excellent client support, we'll help make selling your current home and buying your next home an uncomplicated and rewarding process.
upgrades:Additional services offered by builders and other contractors to buyers in a new home that go beyond the minimal requirements for service.
mortgage:A contract that represents the debt owed by the borrower to the lender for the money borrowed to purchase a property.
equity:The difference between the value of a property and the amount still owed on the property.
access:The right to enter a land through public route; also may include entering the land from another private land.