Making a move to a new home is a huge decision. The reasons why you may want to sell your current home to purchase a new one can be varied. It may be circumstances beyond your control like a job transfer. If that’s the case; you are going to have to market your current home no matter what. But if you’re just wanting to upgrade to a newer home or you’d like more room, there are several factors you may want to consider before selling.

Let’s talk about some pros and cons selling your existing home to purchase new.

 

Consider your budget

The first aspect to consider is the costs involved with buying a new home. You’ll need to consider the location you’re wanting to move to. How to the home prices there differ from where you currently live? Can you afford those prices? For instance; if you’re interested in moving to Austin, the median house price is as high as $540,000. There are many other areas of Texas, where the costs is significantly lower. 

You need to consider the fact that you’ll need at least 20% down for most purchases as well. Will you clear that much money on the sell of your existing home?

Do you want a lifestyle change

It’s also possible you’re looking to lower your cost of living. Moving from a large home to a smaller home can be a money saver. If you’re interested in a fixer upper you could find a very affordable home like we did when we moved in 2018. But, living in a 100-year-old home, has it’s own challenges and expenses. You have to be prepared to spend way more than you had anticipated. The life experience can be its own reward, however. That’s if you have the stomach for it.

Be clear on your goals

Once you have evaluated your lifestyle needs and finances, you should start looking into what aspects of your current living arrangements you wish to change. 

For example, if you are simply unhappy with certain aspects of your current home; make some changes. You can completely change the entire feel of your home with a kitchen remodeling project. A kitchen renovation can give your whole house a new feeling. Adding a wonderful covered deck and outdoor entertaining area can help you to fall in love with your home again as well.

There may be other reasons you’d consider selling your home; an unsafe neighborhood for example. Or perhaps you lost a loved one who lived in your home and it’s too painful to remain there. Those are valid reasons for marketing your home. Only you and your family can make that decision.

Make a financially sound decision

Lastly, while it is important to evaluate your sentiments for your current home, you should make sure that your decision is financially-sound. Indeed, while some renovations have a significant return on investment, some other projects may not add enough value to invest in. Depending on when you purchased your current home, today’s interest rates may not allow you to purchase as much home as you have now. Take your time to consider all factors before making this life changing decision. 

 

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