If you are looking to upsize your current home but are stretched for funds below are some tips on how to make your money go further.
1. Look for houses that have been on the market for a long period of time. Usually, if a house has been on the market for two weeks or longer there is a price reduction and the seller will be more willing to negotiate the asking price. You want to take advantage of that opportunity so you do not have to pay full price for the larger home.
2. Another way is to arrange a rent-back agreement. After selling your home you will receive a lot of cash, but you do not necessarily have to leave your home right away. You can stay in the old house if you continue to pay rent contingent on if the buyer agrees to this. This will allow you to receive all the cash you made off the smaller house and be able to put this cash towards a new larger home.
3. You can also cash out equity on your home to be able to put a larger down payment on another property. This is done through your home's current equity. Home equity is the difference between what your home is worth and how much you owe the lender. So, this is the amount of your house that you own and you can receive that money with a lump sum payment that is paid back over time. This allows you to be able to put down a larger down payment without it coming out of your own pockets.
4. Forced appreciation is also another option. This would involve renovating your home and upgrading the property so you can list your house on the market and get more money from it. This will generate greater profit allowing you to buy a larger house.
5. If you are in a seller’s market at the time you want to buy a larger home you could have the seller pay the closing costs. Sellers want to move quickly in a seller’s market so this could come to an advantage to you. If they pay the closing costs this leaves you money to put towards your larger home!
If you know someone who is looking to buy or sell, contact me