What Move-Up Buyers Need to First Ask Themselves

My 4-part weekly series is a “how-to” guide for moving up to your next home with as little stress as possible.   Whether you’ve bought and sold homes dozens of times, or it’s your first time being a move-up buyer, this series will walk you through exactly what to do when, how, and why.How to Move Up to Your Next Home with Ease Series #1Lauren Kolazas Real Estate’s 4-part “step-by-step guide” to buying your next homeWe all love our first home but eventually there comes a point when it’s time to move on.  Life changes and so do our needs and wants in a home.When you are ready for a new home but also have one to sell or rent-out, the stakes are much higher. This time around, you’ve got more to think about, plan, and “get right” then when you bought your first home, believe it or not. My 4-part weekly series is a “how-to” guide for moving up to your next home with as little stress as possible.   Whether you’ve bought and sold homes dozens of times, or it’s your first time being a move-up buyer, this series will walk you through exactly what to do when, how, and why. 

• Week 1 – How to figure out why you want to move and when; and to narrow down your criteria—where will you live and what will your new home have that your current home doesn’t.
• Week 2—How to finance and budget for this next home; and how to decide whether you will “buy first” or “sell first”; and how to know whether your lender will even approve you for a new home while you still own your current home.
• Week 3—If you’ve decided you’ll sell your current home first and buy your new home second, I’ll tell you exactly how to do accomplish this and what to do when so you don’t end up with no home.
• Week 4—If you’ve decided to buy first, then sell your current home, I’ll tell you what you need to know to make sure you don’t end up with two homes at the same time (at least for too long).

Here in week one, I’ll explain the first step in the process of buying your next home.  Hint:  You must start long before you actually want to move.What Move-Up Buyers Need to First Ask ThemselvesWeek 1 of 4-part seriesFor this next home purchase, you want to be MORE methodical and purposeful than when you bought your first home.That’s why I tell my clients to start thinking about buying your next home well before you need to be in that next home, ideally at least a year.  It will be time well spent since it allows you to fully understand all of your particular reasons for moving, and you’re less likely to make any regrettable decisions.Before you even start looking, going to open houses, or anything else, you must answer TWO very important questions FIRST:1) “How long do I (we) want to live in this next home?”This is extremely important and has to be done FIRST—before you start looking online or spending your Sundays house hopping!  Your answer will help you figure out all of your “must haves” and what you’re “willing to compromise on.”Think about it … your answer of “how long” determines the answers to EVERYTHING else that follows when it comes to buying your next home. It’s also how you’ll be able to narrow down your criteria list based on this answer.  For example:

• If this is your “forever” home, maybe waiting a year to have more money to get everything you want is the answer.
• If you plan on only living in this next home until your kids are off to first grade, then maybe your next home is just a 5-year home with needs and wants that match that time period.

YOU get to decide how long. Once you do, then the answers to the rest will come more easily … but decide how long FIRST.2) What is the #1 driver of my (our) decision to move?”  This answer will help you decide what to compromise on and what you absolutely must have for this next home. See how it follows the first question?!  It can also influence the timing of your move.Here are some examples:

• If you are moving for the schools and your kids are starting school next year, you need to hustle. You’ll need to pick up your pace, but still not make any rash decisions … please!
• If your kids aren’t school aged for a few years, then you can take this process more slowly, which we recommend.
• If you are moving for schools, then your commute time might increase or you might need to get a smaller-sized home than you initially wanted. These may be okay because your #1 driver for moving is “schools,” and you’ll compromise on the rest to get into that school district.

“Moving for schools” is just one example of a #1 driver for your next move. You may want to move for other reasons, such as having a shorter commute, to be closer to other family members, or to have better neighborhood walkability.Whatever IT is, your answer will make it much easier to decide on what you won’t and what you can compromise on.  Remember, no matter your budget, buying your next home is a big game of give and take.Answering the two questions above FIRST —  before you ever spend a Sunday at open houses –will make the rest of this process a piece of cake.  Take as much time as necessary on answering these two questions, even well BEFORE you’ve made the decision it’s time to move and you’ve starting looking.Picture Your Dream HomeNow that you’ve answered these two first questions and are very clear on your answers, the fun can start!It’s time to brainstorm. Make sure to include anyone who is going live in this next home. You want their input on what they would like to have this time and what they really don’t want to deal with ever again. Some things may be more cosmetic that can easily be changed in a new home, but it’s still good to get it all written down somewhere.Here’s some help with your brainstorming:What don’t you like about your current home?This is beyond your #1 driver for moving (see above). You know what nags at you, right?  Maybe it’s lack of storage, maybe it’s not enough yard space.  These are things that you aren’t moving FOR, but want to make sure you aren’t constantly being annoyed about in your next home.I also recommend walking around your home and neighborhood with fresh eyes to really see the pros and cons.Some ideas to get you thinking … layout is not open concept or layout is too open concept; busy street; too much or too little yard; too many stairs or levels; lack of kitchen counter space; not enough storage space; no parking; no garage; no walkable conveniences so need to drive everywhere; noisy neighborhood with too many late-night restaurants; too far from neighbors or too close to neighbors; too much of a fixer-upper; etc.What do you need now that you didn’t before? What about 5 or 10 years from now (or however long you’ve decided you will own this next home)? Everyone (and every family) is at different stages of their lives with evolving needs and wants. This next move should address any new and upcoming stages.Maybe now you need more space for entertaining, a home office, outdoor space to garden, a playroom, more bedrooms and bathrooms, more storage, better schools, a bigger kitchen.  Maybe you are downsizing and you need to make sure there are no stairs.Whatever YOU decide, make sure you’ve thought through everything that could possibly come up during the time period you plan on living in this next home.  Also, don’t get caught up in what all your friends or family say. Decide what’s right for you and only you and make your home-buying choices accordingly.A word of caution:  No Open Houses!Note that none of the steps above involve you looking at homes or wasting time going from open house to open house all day on Sunday.  Wouldn’t you rather be brunching or watching football?!In fact, I tell clients NOT to look at any homes at this stage of the game.  This is the “thinking stage” of buying a home.When my clients want to start looking at homes too early in the process, it causes MAJOR problems.  I know it’s exciting to want to see homes, but truly, you’ll be doing yourself a disservice and get side-tracked if you start looking at homes too soon.  I'll let you know when it’s time, but not yet.I promise if you follow my steps, looking for a home will be much more fun and rewarding.  So, resist the temptation and just think and talk about the questions above.  That’s all you need to do in this first step.It may not feel like you are making progress because you aren’t “doing” anything, but taking time out to think and plan your reasons for a move will make the next three steps so much more enjoyable.BONUS SECTION:  How to Buy a Home When You Are “Moving for Schools”?Schools are a big hot topic for a lot of move-up buyers.  Many times, getting into the school district of your choice is the #1 driver (or a top criterion) for why you are moving. That’s why I’ve included this bonus section!If this is your goal, you’ll need to figure out the “school equation” when buying your next home. Even if you aren’t planning on having kids any time soon or ever, living in a neighborhood with excellent schools can be beneficial to homeowners.For those of you with growing families or hoping to start one in the near future, “moving for schools” will dictate the location of your next home. That’s why if it’s your #1 driver now or down the road, this bonus section is a must-read.Agents can’t give their opinion. Keep in mind, your real estate agent can’t offer any opinions on the quality of the schools or school districts because of fair housing laws. So don’t get frustrated with your agents when you ask about schools!You will have to do the leg work on researching schools and school districts. A good resource to start learning about schools is www.greatschools.org.  Also talk to neighbors and friends, visit schools, and look at test scores, graduation rates, and teacher-to-student ratios.And, keep in mind, what you may deem as “good” may be slightly different from another family. Some families seek out smaller schools, more diverse schools, public or private schools. You know what’s best for your kids.Learn more about all the school options available in certain areas. It’s not always clear-cut when looking at public school districts. There may be “special” schools your kids might go to, such magnet schools or charter schools. There could be “special choice” school zones that you didn’t know about initially that could change your entire housing search. Don’t rule out private or religious-based schools either.Really get to know how the schools work in the general area you are looking in before you buy. My clients are often surprised that there are more options than meets the eye at first. This can really be a game changer when it comes to your home-buying decision making.A good school district brings added benefits to homeowners.  Usually it means your home can retain its value, it’s most likely located in a stable neighborhood, and it will be attractive to other buyers when it comes time to sell it. Those are all major pluses in addition to your children getting a good education!Expect to pay a higher price tag for some school districts.  Typically, a better school district means higher home prices (and possibly higher property taxes). So keep in mind the cost to move into a neighborhood with schools that have a good reputation.If you’re facing a higher price tag, then you may have to seek out other financing or adjust your criteria (i.e., living in smaller house or on a busy road).  But, on the other hand, you’ll likely have an easier time selling this more expensive home when it’s time. Is it worth the extra expense now or for the next X years?  You decide.Don’t forget to confirm school boundary lines.  When looking at homes, always ask your agent or call the school administration yourself to find out what school your child will attend. Always verify this information since it’s not always obvious or could be listed incorrectly by the seller. It’s not unusual that the school closest to your home may not be your school. Boundary lines do change from time to time … So always double check!Now that you know what you need to do first for your next home, you’re ready for the second installment of my 4- part series — “How to Move Up to Your Next Home with Ease.” I’ll explore how to pay for everything so you can get what’s on your list. It’s easier than you think, so stay tuned!