How to join the ranks of move-up buyers
Posted on Tuesday, April 28, 2015 at 3:40:07 PM
The goal for many homeowners is to upgrade to a larger property. According to Trulia, nearly half of adults polled want to live in a more spacious home.
While the survey results showed that 43 percent of adults would rather live in a larger house, there were some differences depending on generation. For example, Trulia reported that fewer baby boomers wanted to upgrade compared to millennials and Generation X. Even so, the overall trend was toward larger homes.
When asking whether or not homeowners' current properties were the right size, only 40 percent agreed. Instead, 43 percent pointed out that their existing living situations were much smaller than what they preferred. Overall, size is important for homeowners, and if they had the option they would gladly move up into more spacious real estate.
Thankfully, there are actually several ways to join the ranks of "move-up buyers." One of the best options is to leverage current equity and use that for the new home. You'll need to have a fair bit of savings in hand, however, to ensure you can borrow against home equity. This step takes place before listing your home on the market.
Another option is a specialized home loan, including an equity loan. In this example, you would make a loan on the equity of your current home, agree to sell quickly and pay off the loan in full when your old home sold. This way, you can use that equity to afford down payments on a new property.
All in all, move-up buyers are not uncommon. If you'd like to find a bigger, better home, consider they ways in which you can use residential financing to your advantage.