Many first time home buyers buy a home based on their current work situation. It might be a home that is close to work, all they can afford at the time or something similar. They might also choose a neighborhood based on location to nightlife and the fact that it is quite.
When first time home buyers become 2nd time home buyers, they often times have completely different needs and wants than they did their first time around. They might want a neighborhood with more kids or closer to a new job. Here are a few ways to know your ready for a move.
How To Know If You Are Ready For A New Home?
Have You Outgrown Your Current Neighborhood?
Like we mentioned above, maybe your wants and needs have changed over the past 5-10 years. Transportation is the #2 highest cost for American families. Living far away from work can cost you a lot in gas and vehicle maintenance, it can also cost you a lot of time. You may also want a neighborhood that is more kid friendly. This may mean a move is right for you.
Do You Have A Lot Of Equity In Your Current Home?
If you have been in your home less than 5 years, you probably don’t have much equity in your current home. This is because you typically pay mostly interest your first few years and more principal on your loan after you have been there for a while. You will probably need this equity to help with a down payment, covering the cost of selling, buying a new loan and even the cost of moving.
Is The Current Market Right For You?
If you are thinking about moving in a down market, you will have more buying power and may be able to afford the home of your dreams. But your home will likely sell for less as well. If you buy in a hot market, you may get more for your current home, but your new home may also cost more.