Feeling cramped? Relocating to or buying a home in the Triangle and considering a move up in the world of home ownership? Before you jump into your search, here’s everything you need to know about buying a larger home.
Should You Buy a Larger Home?
Interest rates are low, prices are good, home values are on the rise in Raleigh… it’s quite tempting to consider that new-home upgrade. But is it a wise financial or lifestyle move for you? The answer just might be YES if…
Your Current Home is Too Small
If you just don’t have enough room—maybe your family size has increased with the addition of kids, pets, or relatives, maybe you started working from home and need an office, maybe you’re just tired of fighting over the bathroom… whatever the reason, if it’s too small, it’s too small!
Prices Are More Affordable
For those relocating from more expensive areas (say, New York or California) you might be able to find a much larger home for a price similar to your old home. Housing is pretty affordable in the Triangle!
You Can Afford It
Maybe you got a new job or a promotion, maybe you finally traded that gas-guzzling SUV for a hybrid, maybe you’re relocating from an area with a higher cost of living. Whatever the case may be, if you find yourself with some extra change in your pocket, you might be considering that larger home you’ve always wanted.
You’re Currently Renting
Renters often focus on affordability (after all, it’s not like you’re building equity on a home!) rather than on finding that “dream home”. But if you’re taking that step from renter to buyer, you’re likely more concerned with what you truly want in a home, and finding a place you’ll want to stay for many years to come.
Before You Buy a Larger Home…
If you find yourself nodding along in agreement with these scenarios, you might think you’re ready to jump right in and start searching. But before you do, here are some important considerations…
The Overall Costs of a Larger Home
You see the price tag, and have incorporated the larger mortgage payments into your budget. But what about all the other increased costs associated with owning a home? For example, insurance and property taxes will be higher. And heating, cooling, and powering a larger home will cost more. And of course, your home will likely need a lot more maintenance, which means more money and time.
Your Financial Stability
Just because you find a little wiggle room in your budget, doesn’t necessarily mean you should drop everything and upgrade immediately. Consider your forecasted monthly and annual spending over the months and years to come. How likely is it you’ll keep your current job? What are the odds your spending will increase over the years?
The Necessity of a Bigger Home
Sure, it would be nice to have more room. And you could probably afford it. But do you need to? Is it worth the extra costs? Consider that spending savings on a larger home could mean a loss of spending elsewhere, like special vacations, early retirement, lower-maintenance living, or down the road, your retirement home.
Selling Your Current Home
Even if you feel that buying a larger home is a necessity, it’s important to first consider your current home. Before you buy a new home, you will definitely want to sell your current home (even if that means renting an in-between for a few months) to avoid having two mortgages, and possibly a home that won’t sell.
Thinking of Upgrading & Buying a Larger Home in the Triangle?
If you’re thinking of buying a home in the Triangle, then it’s time to contact me! As your local guide to all things real estate in Raleigh and the Triangle, I’m here to help you explore the community, discover its beautiful neighborhoods, search homes for sale, and buy your dream home in the Triangle.