“…you have to sell your present home at exactly the right time in order to avoid either the financial burden of owning two homes or, just as bad, the dilemma of having no place to live during the gap between closings”

Unlike the experience of buying a first home, when you’re looking to move-up, and already own a home, there are certain factors that can complicate the situation. It’s very important for you to understand these issues before you list your home for sale. Not only is there the issue of financing to consider, but you also have to sell your present home at exactly the right time in order to avoid either the financial burden of owning two homes or, just as bad, the dilemma of having no place to live during the gap between closings.

In this report, we outline the five most common mistakes homeowners make when making a local move to a larger home. Knowledge of these five mistakes, and the strategies to overcome them, will help you make informed choices before you put your home on the market.

1. Rose Coloured Glasses

Most of us dream of improving our lifestyle and moving to a larger home. The problem is that there’s sometimes a discrepancy between our hearts and our bank accounts. You drive by a home that you fall in love with only to find that it’s one you could never afford. Most homeowners get caught in this hit and miss strategy to househunting when there’s a much easier way of going about the process. For example, we have a unique program called the Buyer Profile System which takes the guesswork away and helps to put you in the home of your dreams. Here’s how it works: we record the details you want in your home into our unique computerized program and then cross-match them with available homes on the market. We send you complete details, including pictures, of homes that not only have the features you’re interested in, but which are also in your price range. This exclusive program has quite literally helped hundreds of local homeowners take off their rose-coloured glasses and, affordably, move into the home of their dreams.

2. Failing to make necessary improvements

– If you want to get the best price for the home you’re selling, there will certainly be things you can do to enhance it in a prospective buyer’s eyes. These fix-ups don’t necessarily have to be expensive. But even if you do have to make a minor investment, it will often come back to you ten-fold in the price you are able to get when you sell. It’s very important that these improvements be made before you put your home on the market. If cash is tight, investigate an equity loan that you can repay on closing.

3. Not Selling First

While it may not always turn out the way you plan, you should plan to sell before you buy. This way you will not find yourself at a disadvantage at the offer table, feeling pressured to accept an offer that is below-market value because you have to meet a purchase deadline. If you’ve already sold your home, you can buy your next one with no strings attached. If you do get a tempting offer on your home but haven’t made significant headway on finding your next home, you might want to put in a contingency clause in the sale contract which gives you a reasonable time to find a home to buy. If the market is slow and you find your home is not selling as quickly as you anticipated, you might consider renting your home and putting it up on the market later – particularly if you are selling a smaller, starter home. You’ll have to investigate the tax rules if you choose this latter option.

4. Failing to secure Pre-approval

Preapproval is a very simple process that many homeowners fail to take advantage of. While it doesn’t cost or obligate you to anything, preapproval gives you a significant advantage when you put an offer on the home you want to purchase because you know exactly how much house you can afford, and you’ve already got the green light from your lending institution. With a preapproved mortgage, your offer will be viewed far more favourably by a seller – even if it’s a little lower than another offer that’s contingent on financing. Don’t fail to take this important step.

5. Failing to coordinate closings

With two major transactions to coordinate, and all the families involved, the chances of mix-ups and miscommunications increase dramatically. There are literally dozens of transactions involved: appraisers, underwriters, lawyers, loan officers, title companies, home inspectors, pest inspectors and so on. We can handle the whole process for you to help you avoid this logistical nightmare.