- Have you built substantial equity in your current home?- How long have you stayed in this home? Usually, you don’t build up much equity in the first few years of your mortgage since monthly payments mostly interest. However, if you’ve owned your home for five or more years, you may have significant, unrealized gains. Check your annual mortgage statement or call your lender to find out how much you’ve paid down.
- Has your income or financial situation changed?- Do you have a better paying job, or got a salary increase? If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving. But, if your income has decreased, you may want to consider downsizing.
- Have you outgrown your neighborhood?- Maybe you now have a bigger family or just want to move to a house closer to your job. The neighborhood you pick for your first home might not be the same one in which you want to settle down in for good.
- Are there reasons why you can’t remodel or add on?- Sometimes you can create a bigger home by just adding a new room or building up. But, if your property isn’t large enough, your municipality doesn’t allow it and if you’re simply not interested in remodeling, then moving to a bigger home may be your best option.
- Are you comfortable moving in the current housing market? If the market is hot, your home may sell quickly and for top dollar, but the home you buy will also be more expensive. On the other hand, if the market is slow, finding a buyer may take longer but you’ll have more selection and better pricing as you seek your new home. Ask your real estate professional what they see happening locally.
- Are the interest rates attractive?- Low rates help you buy “more” home, and also makes it easier to find a buyer for your current place.
- Is the effort and cost of maintaining your current home becoming difficult to manage?- A REALTOR ® can help you decide whether a smaller house, condo or rental would be appropriate.
If you decide to sell your home to move to a larger home or in a more desirable location in Arlington, you need to ensure that the move will be right for you and your family. These seven questions will help you determine whether you’re ready for the big move. If you answer yes to most of these questions, you may be ready to take this step.