Sellers: Move Up Buying? Start Here. Posted on May 14, 2018 - 12:29 PM by Red Hilton SELLERS as Move Up Buyers Move up Buyer: A property owner who has owned a residential property and is looking to purchase a larger home.. Step by Step Guide to being a MOVE UP BUYER (aka selling a home and buying another one). Decide to sell. That may sound obvious and basic. But it is important. Sit down with the AskForRed.com Team and make a plan. Most people need to sell their current home to MOVE–UP to a bigger home. You should “ready” your home just like every other seller. Know your Market Price. Is your home Staged To Sell? What is your bottom line and bottom ”net” after paying commissions and paying off your current mortgage(s)? Of your net proceeds, how much are you using as a down payment on your next home? Work with the AskForRed.com Team to prepare your home to get you the best price. After all you have taken good care of your investment; it’s time for your Investment to pay you back. Make sure you are PRE-APPROVED. We have previously talked about pre-qualifications vs pre-approvals. Makes sure you are fully pre-approved. Your Bank will take what your expected net proceeds from the sale of your current home (whatever portion you are planning to use) and apply them to the down payment of your future home inside the pre-approval. From there, your Bank produces a pre-approval based on the amount you qualify for with the down payment from your sale. This is why it is important to know your net proceeds and bottom line from the sale of your home. Some Banks offer “Lock and Shop”options so you will also be able to secure your interest rate while going through the process. SELL YOUR HOME. Most of our clients want to go out and “BUY” a home before putting theirs on the market. (Usually out of fear of being “homeless”). This is not a good strategy in a seller’s market. And we are in a very competitive seller’s market with lower than normal inventory. You will be making an offer contingent upon the sale of your home. This can put you at a disadvantage in the market. A seller is less likely to accept your offer if you have a home to sell (as compared to a first time home buyer or renter). If you also need to add to your offer that your home is not even on the market and you have not secured a buyer, they are less likely to want to take their home off the market while waiting for you to perform and secure a buyer for your home. MAKE YOUR BUYER WAIT, NOT YOUR SELLER. **Think about this for just a moment: If you were selling your home, hoping to get a quick sale and move up and a buyer came to you, made and offer and indicated they still needed to sell their condo in order to buy your home. How would you feel? Would you want to take your home off the market and wait for them to LIST their home, HOLD an Open House on their home, NEGOTIATE an offer on their home, HAVE a home inspection on their home, THEN sign a Purchase and Sales agreement if it all worked out? Are you willing to wait weeks or months for your buyer to perform before you can look for a home yourself? Not likely, especially if you have other offers with NON-CONTINGENT BUYERS**. Sell your home. Have your open house, price the home aggressively and hopefully end up with several offers. As the AskForRed.com Team lists your home in MLS we will do so contingent upon suitable housing. We will let your buyer know we need time once we accept your offer to find a home. The terms of your “search time” are negotiable and may depend on the buyer’s situation. This is why it is important to attract several offers. It is not just about the price buyers are willing to pay for your home; it is also about their willingness to allow you to find your perfect home as a move up buyer. Find your MOVE UP home. OK! sound the alarms, it is time to look for a home! Now that your home is under agreement, you become a BUYER. When making an offer, you are almost as competitive as your counterparts who are also looking for a home. First Time Home Buyers may have less risk to a seller BUT a MOVE UP BUYER (aka YOU!) will probably have a larger down payment and that can make you as attractive to your seller. Remember back when you got completely PRE-APPROVED? This is where it will pay off for you. Most Listing Agents will contact a buyers Bank and ask how much “processing” has been done on your “pre-approval”. Was it reviewed by an underwriter? Was it only signed off on by a loan officer (which we all know, they cannot make credit decisions and therefore can only technically issue a pre-qualification…). Good Agents know the difference between a pre-qualification (even if it is marked as a pre-approval) and a REAL PRE-APPROVAL. Spending a little time up front getting prepared will be worth it and help you to be more competitive in your offer. Coordinate your sale and purchase. The AskForRed.com Team will make sure your offer is appropriate and will allow a smooth transition from one home to the next. We work with your buyers and their closing attorney and your Bank and your closing attorney to make sure everything is on time and we have as few “challenges” on either end of your transaction(s). Thinking of making a move? Keep us in mind. For all your Real Estate Decisions...think RED! AskForRed.com Comments There are no comments for this post.