When you already own a home and you catch yourself daydreaming about something...different...it may be time to move up.
Do you wish your commute was shorter? Your neighborhood was nicer? Have a pesky neighbor you can't wait to get away from? Are you running out of storage space? Your kids need their own bedrooms? If you answer yes to most of the questions, it’s a sign that you may be ready to move. Some of the tips below will help you gauge if now is the right time:
1. Have you built substantial equity in your current home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you’ve owned your home for five or more years, you may have significant, unrealized gains. To avoid a short sale, you want to make sure you can at least break even on your mortgage payoff vs. home sales price. Need to find the current market value for your home? Try this handy form.
2. Has your income or financial situation improved? If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving.
3. Have you outgrown your neighborhood? The neighborhood you pick for your first home might not be the same neighborhood you want to settle down in for good. For example, you may have realized that you’d like to be closer to your job or live in a better school district.
4. Are there reasons why you can’t remodel or add on? Sometimes you can create a bigger home by adding a new room or building up (ask about a Renovation Loan). But if your property isn’t large enough, your municipality doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best option.
5. Are you comfortable moving in the current housing market? If your market is hot, your home may sell quickly and for top dollar, but the home you buy also will be more expensive. If your market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home. (Hint: Prince George's County and Baltimore are HOT right now, Anne Arundel, Calvert, Charles & Saint Mary's are a little more conservative.)
6. Are interest rates attractive? A low rate not only helps you buy a larger home, but also makes it easier to find a buyer. The Fed just increased rates, but they're still on the low side. If you plan on staying in your current home, check out your refinancing options. If you are ready to move up, I can recommend some great local lenders who can offer competitive rates and care.
Lothian MD Homes for Sale - Genna Fleming, REALTOR® with EXIT ELITE REALTY
You now have free access to Southern Maryland’s Ultimate Real Estate Search Engine! Your local real estate expert has the knowledge and experience to deliver the unsurpassed service you deserve. Local Specialty: Upper Marlboro, Lanham, Lothian, Edgewater, Annapolis, and Dunkirk as well as all of Southern Anne Arundel County and Southern Maryland. Google or call me today and let’s discuss how I can save you $1,000’s when you buy or sell real estate. Call Genna Fleming at (443) 532-8917 or @Ask_Genna by visiting www.AskGenna.REALTOR.