Monday, 2 October 2023
Moving on UP This month I need to be blunt and explain why right now, Fall 2023 is the perfect time to ‘move up’. Read this now because this window will close. I recently had a phone call with a past client about this very subject and figured it’s the perfect time to put it into a blog. Did you know that Fall is the second busiest time of the year for selling real estate? Spring is #1 but selling in the Fall is a great time. The air is lighter, we’re all back to routine, and buyers and sellers want to get this done before the snow flies and we’re celebrating the holiday season.
My client called to pick my brain about moving from the house I had sold him and his partner a few years ago. He asked a lot of questions about moving costs and how they would be able to make sure they got the house they wanted, while selling their house. He asked about timelines, like how much time would they be given to sell, should they sell first or buy first? How do they make sure they don’t end up owning two houses!? How does that work if they still owe money on their current home? Not gonna lie, I was so excited to teach him how all of this works. Especially since this is the perfect time to have this conversation!
‘Moving up’ is when you are buying a home that is a step up from what you’re currently living in. Perhaps it has more square footage 
and more bedrooms, it’s more updated, in a better neighbourhood, has a bigger yard or it’s a newer home. In any respect, it’s basically better than what you have now and you’re generally paying more for this property than your current home is worth.
Now is a great time to move up because many people have a lot of equity in their home due to rising home prices in the last few years. Although home prices have settled for the most part in 2023, they are still up from 4-5 years ago. Couple that with those smart homeowners who have also nicely maintained their homes and even made improvements, and you probably have a good amount of equity in your home. You use that equity to put towards the purchase of your new home, then you get a mortgage loan to cover the rest of the purchase price. If you’ve owned your current home for at least four to five years and have made some improvements, you are perfectly poised to move up.
Generally, purchasing a home that is priced higher than the average sale price in your area means the chances of competing for it are less. You’ll also be more likely to have your conditions accepted, such as financing and a home inspection, and of course the condition of selling your home in order to purchase this one. On the flip side, if the home you’re selling is either at or a bit below the average selling price of a home in your area, it will be quite attractive to first time buyers, especially if it’s updated.
One of the largest groups of people right now buying homes are millennials and they are ready and willing to buy. Yes, interest rates are higher than they were, but that doesn’t stop everyone from buying a home. The higher rates mostly affect those just squeaking into the market. People are still buying and right now they’re very thankful to be buying in a buyer’s market, without the dreaded competition we have experienced during the last couple of years. Don’t forget, when rates go down, prices will likely go up. Many buyers will either be priced out due to competition again, or frankly get frustrated and give up. It’s happened before. (2016 comes to mind). Many of our current buyers have been trying for a couple years. They’re happy right now as we’re in a buyer’s market, so it’s a perfect time for them to buy their first home, resulting in a perfect time for you to list it, resulting in you being able to move up. See where this is going?
I’ll quickly address the ‘sale of property’ condition. When we’re including a sale of property condition, here’s how that works: you’ll generally have 30 days to sell your home. There will be an ‘escape clause’ for the seller stating that if they receive another offer that they want to work with, they’ll let you know through their agent. Then, you’ll have 24 to 48 hours to remove your condition(s) or they go with the other offer. That escape clause has to be there. It’s kind of not fair to hold the seller's house for 30 days, right? You’ll be expected to either a) already have your home on the market or b) get it on the market within a couple of days. When my clients must have a sale of property condition on their offer, we ensure their current home is ready to hit the market before we start looking for a new home. Letting the seller's agent know you’re on the ball and your home is ready to go up for sale increases your chances of getting your offer accepted and instills trust that you’re serious about purchasing their home.
This is just a taste of the ‘selling while you’re buying’ process. There is certainly more to discuss and I would love to chat with you about it. Guiding people from one house to another is what I do best. The thing to remember right now is that if you want to move up, this is the time to do it. Call me anytime and let’s map out a plan for you to get you into your next home.
