Is it time for change? Whether it is a change in your family, finances, health, career or simply a desire for change, January is a great time to prepare for a move. Whether your destination home is down the road or out of state, spring & summer will bring a good number of home options to market. If you have a home to sell soon, you’re also positioned in a great time of year.
Do your homework early, so that you’ll have a plan in place without unnecessary surprises. Talk to your financial planner, CPA or other trusted professionals to find out what your tax ramifications might be. Your Realtor® can help you calculate other closing costs and expenses, so that you have a realistic view of the financials.
If you’ll be financing your next purchase, consult with a trusted lender (don’t just drop numbers into an online calculator) to make sure that you’ve explored your loan options and to make sure that there isn’t anything that you aren’t aware of, that could prevent you from obtaining the financing that you have in mind.
Will you need the equity in your current home, to purchase the next one? You’ll want to evaluate the pros and cons of selling first, versus buying first…and you may need approval for a bridge loan, if you plan to buy first. Buying first usually involves more financial risk and expense, however, many people choose to buy first because the “right” home is the motivation for the move, and they want to know where they’re going.
If you’re looking at a different area, or perhaps a different type of home, be sure to investigate your insurance options and know what the average new policy of homeowners insurance is likely to cost. Familiarize yourself with property tax rates & special assessments. These can vary significantly by state, county, city & neighborhood. If you’re moving to an area that you don’t know very well, consider renting a home first…at least for a few months. This will allow you enough time to find the neighborhoods that best match your lifestyle and personal taste. It will also give you time to figure out which neighborhoods the locals value most, hopefully leading you to a strong investment. Desirable features aren’t always the same, from one community to the next. If you’re moving to a different climate, be sure to think about the seasons and what that will mean for your lifestyle, and your utility bills. Quality of schools, commute distances, and access to medical care are all factors to consider, even if they are not important to you. Why? They will have an impact on your long term investment, if they are not favorable to the majority of home buyers.
One thing is for certain, time moves quickly! Take advantage of the rainy days of January to do some early pre-move packing, cleaning and home repairs/improvement, if needed. If you have a home to sell, consult with your Realtor® now to make a plan that fits your needs & timing. You’ll want to be ready for the best opportunities, when the time comes.
Every home sale and purchase is unique. Please feel free to reach out to me at 925-964-5010 or via email at Lisa.Hopkins@Compass.com to discuss your options. It’s never too early to start planning for success.
