For many homeowners, moving out of their starter home represents a significant milestone—maybe your family is growing, or you’ve decided to upgrade your home and lifestyle. A transition from a smaller, more affordable property to a larger one may mean you’re finally getting the space you need or moving to a neighborhood you love. It’s an exciting time for most people. It’s also a big decision with a lot of moving pieces. Here are a few questions to ask yourself as you take this step.
How much space do you need?
Are you expanding your family, or is this a move for comfort and convenience? Consider whether you need additional bedrooms, larger living spaces, or a home office. Think about outdoor space as well—do you need a larger yard for pets or children? How do you anticipate your life changing in the next five or 10 years? Thinking ahead to the future of your family and lifestyle can help you choose a home you can stay in for years to come.
How will your new mortgage fit into your budget?
Your new home shouldn’t just fit your lifestyle; it has to fit your budget as well. It’s crucial to assess how the new mortgage will impact your monthly expenses and overall financial health.
Think about reworking your budget or talking to a financial advisor to develop a financial plan that includes your mortgage as a key component of your larger financial strategy, considering how it works with other investments and savings goals. An advisor can help you understand how your new home costs align with your financial objectives.
What new expenses come with this upgrade?
Upgrading from your starter home often means handling more than a higher mortgage payment. Larger homes can bring higher utility bills, increased maintenance costs, and higher property taxes. You may be paying for more repairs or maintaining your outdoor space for the first time. Consider potential costs for new furniture and necessary renovations. It’s impossible to predict everything, but as you go about this process, list expected new expenses, whether one-time or ongoing. Consider how they will affect your savings and monthly budget.
How will you get your starter home ready for sale?
Unless you plan to rent out your starter home, you likely need to get it ready for sale.
Potential buyers like to see a home as a (well-organized, clean) blank canvas. Begin by decluttering and making necessary small repairs. Consider whether minor upgrades (such as reglazing your bathtub) will help entice buyers or increase the home’s value. Staging your home effectively can also affect how easy it is to sell. Your realtor can help you with this process and advise on local market trends and pricing.
Source: iQuanti
