Omaha
Buyer's Broker
Changing the Way Omaha Buys a Home™
Does “Moving Up” Make Sense in This Economy?
It's not unusual for families to decide to "move up" in their housing. Sometimes it's caused by an increase in family size and a need for more living space. Sometimes families want a more desirable home location - closer to work or church, or with a better school district, or a move to "the country." Whatever the reason, here are some thoughts about whether or not moving up makes sense for you and your family:
- First, how much equity do you have in your home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of paying a mortgage, but if you’ve owned your home for a number of years, you may have significant unrealized gains that could be applied to the down payment on a bigger home.
- Second, has your income increased enough to cover the extra mortgage costs and the costs of closing and moving?
- Third, what is the current condition of the home market? If it’s a seller's market, you may get top dollar for your home. In a buyer's market, your home may take longer to sell, and you may not get as good a price for it. On the other hand, you can probably get a good deal in the purchase of your new home! At the time of this writing, Omaha is still in a strong buyer's market.
- Fourth, can you achieve your goals by adding on or remodeling? If you have a large yard, there might be room to expand your home. If not, your options may be limited. Also, do you want to undertake the headaches of remodeling?
- And finally, how are interest rates? A low rate not only helps you buy more home, but also makes it easier to find a buyer. Interest rates today are still at historic lows - so even if you decide it's NOT time to move up, it may be time to refinance your mortgage!
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