4 Deadly Mistakes to Avoid When Moving Up

Moving to a better neighborhood, larger home, or new house can be a fun and exhilarating experience. But before you get to excited, or too far into your home-buying journey, you need to take into account the complication you may face when moving up.

One of the more common complications you may run into is the dilemma of owning two homes at once. Even worse than this, is becoming temporarily homeless because of an improperly timed sale of your current home. On top of this, you still have to worry about how to obtain the best financing.

In this report, we'll cover these and other important issues.

Critical Mistake #1 - Choosing the Wrong Real Estate Agent

When moving up, most people have one Real Estate Agent who handles both of their transactions - the sale of their current home and the process of finding a new one. Because of this, the Real Estate Agent gets a chance to 'double-dip'. You will usually pay them commissions not just on one transaction, but two!

With so much of your hard-earned money changing hands, it pays to shop around for the best agent. The best agent is not just the cheapest one. You should look for a combination of experience, price and personality. If you don't feel 100% comfortable with the Agent, what makes you think potential buyers will?

Usually, your lending institution can refer you to a highly qualified Real Estate Agent. If you would like to receive a list of recommended Real Estate Agents for this area, click here.

Critical Mistake #2 - Not Selling Your Current Home First

As a rule of thumb, it's usually better to sell first. If you don't, you could run into a number of issues. If you purchase first, you could be at a major disadvantage when negotiating the sale of your current home, thereby accepting a lower price than you had hoped for just to meet a purchase deadline.

We recommend putting a contingency clause in your sales contract that specifies a specific amount of time between the sale and moving out. This will give you plenty of time to find a new home once the sale of yours is complete.

Critical Mistake #3 - Not Coordinating Your Closing Dates

When moving up, you will be involved in two major Real Estate transactions simultaneously. You could easily have over a dozen people involved, including Real Estate Agents, Lawyers, Title / Escrow Companies, Mortgage Companies, Home Inspectors and others. We recommend working very closely with your Real Estate Agent to ensure a smooth closing transaction.

Critical Mistake #4 - Failing to Obtain a Mortgage Pre-Approval

In some areas, a seller may not even deal with you until they can verify that you can actually afford to purchase their home. To them, a pre-approved buyer is essential. And just because you currently own a home, doesn't necessarily mean you will automatically qualify for a new mortgage.

50% of the time, homeowners sell their current home first. Then, they go about obtaining financing and looking for a new home. This decision is not recommended. You should ALWAYS get pre-approved for your financing BEFORE you sell you current home. Imagine selling you current home and then finding out you are not approved for a new mortgage. You might think you are immune, but you better think twice, because this financial nightmare is fairly common.

Get Pre-Approved. It's fast, easy and at NO COST to you.