Home values are up. Rates are still at historic lows. That means that now could be a great time to sell your existing home and finally design and build your dream home. Maybe that means a larger home to accommodate your growing family, a better neighborhood with a more desirable school district, or downsizing to a smaller home with a mountain or waterfront view.
So how do you know if it’s the right time to sell your existing home?
We’ve put together a savvy move up buyer’s guide that includes a step-by-step plan to help you determine if now is the right time to sell your existing home and design and build your dream home.
Here’s how:
Talk to a Realtor
Online estimates of your home’s value don’t tell the whole story. Talk to a professional real estate agent to get an idea of how much your home would sell for based on current inventory, other homes on the market in your area, recent sales, the condition of your home and even new listings that will be coming on the market soon.
A professional, reputable real estate agent can give you information and insights (like what buyers in your area are looking for) that no amount of online research can offer.
Consider All Costs
A real estate agent will also recommend items you’ll need to complete to make your home more marketable. Repairs, cosmetic updates, staging, and landscaping can increase the value and desirability of your home to potential home buyers, but there is a cost. You’ll also want to factor in agent commissions, closing costs, and moving costs.
Savvy move up buyers know that gathering this information early and penciling out a budget to the penny is the smart way to avoid unwelcome surprises later.
Meet with a Lender
If you plan to finance your new home, meet with a lender before you sign a listing agreement to determine a budget for designing and building your dream home. Although online calculators may give you a general idea, an in-person meeting is the best way to find the mortgage option that is best for your specific situation. You can meet with a mortgage professional with no cost or commitment.
When you meet with a lender prior to listing your existing home for sale you’ll have a snapshot of what your monthly expenses will be in your new home. This can be a helpful tool for reviewing and negotiating offers on your existing home.
Schedule a free consultation with Alliance Financial Services.
Choose a Floor Plan
The floor plan that you choose will be one of the biggest factors in your budget, but don’t be discouraged if the plan you choose gives you an initial case of sticker shock. When you build a custom home you can mix and match elements from different floor plans to create a home that’s the perfect fit for you and your budget. Choose your custom home floor plan (or several that you like) and then schedule an appointment at a Home Planning Center. A Home Ownership Counselor will be able to talk through your ideas with you and find ways to match your vision with your budget.
Schedule an appointment by Live Chat or see all Sales Center locations.
Estimate Land Costs
If you haven’t purchased land yet, get an idea of what land prices are for the lot size and location that you want. Once you’ve found the perfect lot to build on get an expert opinion about the land costs that will be required to build your home. This may include utilities, clearing, permits and other expenses.
Our best advice? Don’t go it alone! You can schedule a free Land Analysis with a member of our ProTeam. Our ProTeam will give you a simple plan for preparing your lot to build on. Once you’ve signed an agreement to build our ProTeam will even help you coordinate completion of each item.
Request a free Land Analysis appointment by Live Chat.
Explore a Design Center
Another important factor to consider is the estimated cost for the customization and design selections that you want in your new home. Do you envision hardwood floors throughout your home or adding a more counter space to your kitchen? Find out how much these items will cost up front. We recommend making a list of “must have” and “nice to have” items that you want in your new home. Once you have an idea of the pricing for each item you can prioritize based on your budget.
Learn more about our Design Center locations.
Regardless of what is going on in the local or national economy, we know you also have a personal economy. Getting all the facts and figures before you list your home means that you can make a confident decision about the right time to list your home.
