With interest rates still historically low and home values high, you may be starting to think about downsizing from your current home and buying a smaller home. Here are some important steps you need to take before you get started.
1. Talk to a Realtor® Downsizing and deciding to buy your next home is kind of like putting the pieces to a big puzzle together. A good agent will counsel you and guide you through the steps to selling your home and finding the next one without making you feel pressured to skip any of them.
2. Get a market analysis on your current home. Have your agent research the current market and give you a realistic idea of how much you can expect to sell your home for in todays market. They should be able to give you an idea of the NET proceeds you can expect to receive after real estate costs and closing costs. It is important to know how much you will receive to put toward your next house.
3. Get Pre-Approved for a Mortgage. If you will not be paying cash for your next home, your next step will to speak to a trusted lender about financing and pre-approval. Even if you “KNOW” you can get pre-approved, sit down with a lender and get the facts on how much you are pre-approved for, how much down payment you will need, how much closing costs are and what you can expect your monthly payment to be. You should be comfortable with these numbers before moving forward. You should also find out if you can buy your next home without selling your current home first, many of our clients are preferring to move out of their current home first, and have it painted and staged before putting it on the market. The big question is; will you have enough money after the sale of your current home to meet your goals in buying your next home?
4. Understand what you can buy. What type of home is within your budget? Have your agent send you listings of available homes that meet your criteria within your budget. Are you seeing what you like? Is your criteria realistic within your budget? The days of low-ball offers are over. There is an inventory shortage right now so you need to be prepared to act quickly and make a solid offer on the home that you like. Many buyers are opting for new construction right now to get what they want.
5. Get Started! Once you have researched, made decisions and are comfortable in all of these areas, you can take the steps to move forward. Work with your agent to get your current home ready for the market . Start looking at new homes. Downsizing can be exciting and your agent will help you make the process as stress-free as possible!
Looking for a Realtor® in the Twin Cities NW Metro that can help walk you through these steps? Contact Myra Jensen at BRIX Real Estate at 763-227-0618 for a free consultation. Licensed in Minnesota.