Your current situation
The first thing worth considering is whether you can make your current situation work for you. Perhaps there are solutions besides moving that could make your current house suit your new needs. Maybe your family has grown and you need an extra bedroom, or you’re working from home more than when you first bought and would like a separate office. Is there a way to modify your current house to create the space you need? I’ve had clients come up with great ways to create space — whether putting a small office under the stairs or renovating the basement to add an extra bedroom or office.
Always searching?
Do you feel like you’d move only if you found the perfect house — but can’t find exactly what you’re looking for? This happens often: buyers who are only partially motivated look for something perfect to justify moving from a house they’ve been in for a while. It could mean you’re perfectly happy where you are and there’s no real need to move. But if you find yourself consistently looking at listings, it could mean there’s something about your current house you’re dissatisfied with — and it might be worth exploring your options, which may include building or buying a house that meets most of your criteria, with a budget and plan to turn it into exactly what you need.
Rising prices
Another factor is that house prices have gone up over the last couple of years, so anyone who has been looking over that period now feels they need to pay a lot more than when they started. While that’s true, keep in mind that the value of your current home has also likely increased — you may be able to walk away with more than you would have previously, which could allow a higher down payment and a lower monthly cost.
Cost
When deciding whether you can afford a more expensive house, the best thing to do is look at the financials. Talk to your REALTOR® to get a market value for your current house and figure out how much you may walk away with after expenses. Then talk to your mortgage broker to figure out what your payments will be on the new house, and estimate other expenses including utilities, insurance, and property taxes. Remember that if you have equity built up in your current house, you could use it on the purchase of the new house to lower your mortgage payments, if that makes financial sense for you.
If you have any questions about upsizing, get in touch and we can set up a no-obligation meeting to discuss the best way forward.
