When you bought your first home, you learned how to shop for a house, how to get a mortgage and how to become a successful homeowner. Now, you’re ready to move on to something different; something a little bigger perhaps? Maybe something in a new neighbourhood? Now, it’s time to master the art of being a first-time seller.
Know the value of your home
Realtors who know your neighbourhood often do a good job of estimating the value of your home and how much buyers might pay for it. Knowing the value, as well as the equity you’ve built (the difference between the value of your home and the amount you owe on your mortgage), will help determine how much you can afford to spend on your next home. At this point, you should start the mortgage approval process and get pre-approved for your new home. This way, you’ll know how much you can plan to spend.
Build your team
Just like when you bought your first home, you’ll need a realtor, a lawyer or notary, and a mortgage specialist to help you sell one home and buy another. If you were happy with the team you assembled last time, and they’re still available, it should be easy to reunite them and start planning your sale. If you want some fresh thinking and new faces, ask friends and relatives for referrals.
Cleaning, staging and prep work
“The better it shows, the better it goes.” Once your home goes on the market, plan to always be buyer-ready. Be sure to set aside a budget for:
Professional cleaning
Let the pros do a thorough job so you only need to maintain the effort while your home is on display.
Staging
Staging companies rent furniture and artwork that makes your home more appealing to buyers. They can also remove and store any furniture and items to create a sense of open space in your rooms.
Touch-ups
You could also consider a fresh coat of paint and tackling minor repairs like patching holes and cracks in any rooms that are due for a touch-up.
Getting a head start on your new mortgage
You’ll likely need to finance your next home. Because you already own a home, you have a few options to consider:
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Refinancing – pay off the existing mortgage by starting a new one with a new rate and terms. Read more about it.
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Porting – transfer your existing mortgage, with the same rate and terms, to your new home.
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Blending and extending – combine your existing mortgage with a new mortgage. This new ‘blended’ mortgage will have an interest rate that is an average of your existing mortgage rate and the lender’s current posted rate.
You can explore all these options with the help of a qualified mortgage specialist. Surrounding yourself with a team of experts, taking the right steps and understanding your options will go a long way toward making your home-buying journey a fun and rewarding one.
