Things to Consider When Upsizing Your Home

First off, what does upsizing your home mean? Upsizing your home basically means the process of moving to a larger house than the one you are currently living in. So, if you are planning to grow your family or accommodate more guests, then it might be a good call to upsize.

Besides, not only will you have more spaces for your convenience but you will also have additional advantages when it comes to holding more value for your property, which is a great long-term asset to invest in.

Here are some thing you can take into consideration when upsizing a home:

KNOW WHAT YOU WANT OR NEED

To begin the process, it is important that you know what to look for in a larger home. Have a list of the key features you want or need, so it’ll be easier to make a decision when you buy a property.

Ask your family’s input and discuss with them why you are upsizing. Is it because you need more bedrooms for additional children or an elderly relative? Do you need extra rooms for work from home opportunities or yard spaces for your kids and/or pets? Or are you simply looking to invest and hoping for potential financial return?

If upsizing is still your best option, then also consider how much space you really need. Is it possible that you stay where you are and simply renovate or expand its area? Will upsizing benefit your life circumstances for good or just temporarily (for example, will you be downsizing once you retire)?

SHOULD YOU BUY OR SELL FIRST?

Generally, selling your home comes first, before buying a new one. This way, you will have the finances ready, and you will also have the certainty of knowing your final sale price in advance, which can help on the buying side because you know what you are working with. Selling first also helps avoid paying two mortgages at the same time.

If you do decide to sell first, there are two ways to go about it. The more common option here is to sell with a longer settlement, which gives you some time to look for what you want to buy, this way you can line up a simultaneous settlement on your purchase with your sale. Or  you may wish to find a home to rent to allow yourself even more time to find that perfect home, while this does mean moving twice, it does avoid the stress of both moving out of your old house and into your new house, all on the one day (simultaneous settlement).

If you decide to buy first then you will either need to buy a house “subject to sale” of your house, which can make buying much more challenging as sellers are unlikely to accept this condition from a buyer. The other alternative is to obtain a “bridging loan”, which basically means that a bank will loan you the funds to buy your new home and allow you time to sell yours later, although this does mean that you will be paying two mortgages for a period of time.

Whichever you decide to do, reaching out to one of our real estate agents for an appraisal, can help you to know the estimated value of your current home and provide you with additional information about current selling conditions, estimated selling timeline, and  recommendations to enhance your home’s sale value.

CHOOSING YOUR IDEAL HOME

Finding the right home for you is a decision that shouldn’t be rushed. It is crucial that you understand the responsibilities of upsizing and that you take the time to think long-term before making a commitment. 

Start by listing down all your must-haves: from the number of bedrooms you need to outdoor spaces and floor plans. By doing so, you will be able to narrow down your search and it will also help you cross check it against your other requirements such as location and price point.

Once everything is settled and you realize that upsizing is totally in line with your financial and personal goals, then you’re the right  path! Go for it! Just make sure that you get a good overview of your current status and that you seek professional advice from the appropriate professions such as accountant, mortgage broker, and for all your real estate needs we are here to help.