How to Buy a House When you Already Own One

How to buy a house when you already have one? There has been a lot of moving in Austin, quite frankly nationwide.  Over the last two years, the pandemic provided some fluidity to the national workforce and virtual proximity to the office, providing the opportunity to move here to Austin with the same job. The arrival of more tech companies created job opportunities for those seeking a fresh start.  Lastly, the historically low-interest rates, coupled with the influx of buyers created an abundance of demand, which elevated equity almost overnight.

Announced relocations to the Austin MSA & expansions of existing area employers.

Homebuyers who have the moving bug may have the equity to afford to make a move, with rising home values.  How exactly do you make that move? 

How to buy a house when you already own one?  Rome wasn’t built in a day and neither is moving.

The thought of moving when you already have a home to sell can be overwhelming. Much of our stress comes when we spend more time thinking about the future than what is happening in the present moment. When we get stressed about moving it’s typically because we take all of the tasks that need to be done and combine them into a 30-second imaginary horror movie. Just like a nightmare, your body processes stress the same way whether it is real or imagined. That 30-second movie is scary and stressful and the idea of moving shuts down faster than one could scream. The movie in your head is overwhelming. Like most things, real life is a tad less dramatic, so allow me to underwhelm you.

Moving takes time.

You don’t need to sign papers or wait until there is a sign in your yard to get into the moving mindset. You can get into it at any time – even if you aren’t planning to move for years. Donate, purge, create organizational systems and make a cleaning schedule. Everyone is going to move someday. We don’t always know how or when, but it will happen. If you don’t want to be overwhelmed then – take control now. Clean out the attic, go through the basement, organize the closets. One bathroom drawer at a time – if you need to.

Still, want to move?

Great. Play a game of what-if with me. Let’s figure out the value of your current home, how long it will take to sell, and let’s take a peek into the future and see how the current inventory of homes for sale marries up with your hopes and dreams. The current inventory is as close to a crystal ball as we are going to get. As long as we are looking in the same market we are planning on acting in, we should be able to set an expectation. Understand – the market is as much a moment in time as it is a place on a map.

Does the future look good?

If so, that’s great news. I’m going to now have you speak to a lender to figure out what the future is going to cost.

Do you want or need to sell your home first, in order to buy your next dream house?

Let’s get your home under contract and find your next one. We will ask for a seller leaseback, so you can stay in your home as a tenant after you close. You won’t need to close and move on the same day.  The other option is to use a bridge company.  Companies like UpEquity were born out of this market.  Bridge Companies help you finance your next home before your current one is sold.  Keep in mind these companies will tack on more expense.

Have I oversimplified the process?

Not really. The point is to just remind you that it took longer than a minute to buy your first home and it’s going to take just as long for the next one. Take your mind off of 2x or 3x speeds. Stay in the present moment, let the steps play out in real-time, and with a little planning – that horror movie can turn into a fairy tale.

 

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