Looking To Trade Up? Tips For Homebuyers!

Unfortunately recent reports state that the housing market still has not yet picked up the speed that everyone had hoped. However, a common misconception that most people have is that it is only home sellers who are finding this market challenging. Current homeowners who are in the market to 'trade up' and purchase a new, larger home at a higher price are also finding these challenging times.

These homeowners are not only facing the value of their homes drop significantly from a few years ago, but they also are in stiff competition from other properties that have been deeply discounted or are foreclosed or distressed properties. According to the National Association of Realtors, this group of potential trade-up buyers is increasing. 

The challenge this group of buyers face is that due to this market, they are stuck in homes worth a lot less than what they paid.  Although they are able to obtain great financing terms, they are finding that they have little or no equity.

All is not lost however, below are some tips for homebuyers hoping to trade up:

• Use an assumable mortgage to help sell your home. As assumable mortgage is something that mostny sellers may not be familar with.  With an assumable mortgage, the outstanding mortgage and its terms can be transferred from owner to buyer. The benefit of doing this is that by assuming the seller's remaining mortgage, a buyer won't have to go through the rigorous credit check they would if they applied for a new mortgage. In addition, homebuyers can save on closing costs as well as potentially sell their home quicker because there is no need to wait for a loan approval.
• Set the price of the home below market value. Ok, this is obviously not the ideal option most homesellers would like to consider but you'll likely increase the chances of selling your home quickly if you put it on the market at a competitive price.
• This is still a buyers market, and eventhough current homeowners face the hurdle of selling their current property before they can move on, there are many factors on their side.  Mortgage rates are at historical lows now: The average 30-year fixed-rate mortgage stood at 4.57% last week, according to Freddie Mac, the lowest it's been since 1971. 

 

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Posted via email from Westlake Village