5 Ways to get Money to Buy a Larger Home
If you are looking to upsize your current home but are stretched for funds below are some tips on how to make your money go farther.
Look for houses that have been on the market for a long period of time. Usually if a house has been on the market two weeks or longer there is a price reduction and the seller will be more willing to negotiate the asking price. You want to take advantage of that opportunity so you do not have to pay full price for the larger home.
Another way is to arrange a rent back agreement. After selling you home you will recieve a lot of cash, but you do not necessarily have to leave your home right away. You can stay in the sold house if you continue to pay rent contingent on if the buyer agrees to this. This will allow you to receive all the cash you made off the smaller house and be able to put this cash towards a new larger home.
You can also cash out equity on your home to be able to put a larger down payment on another property. This is done through your homes current equity. Home equity is the difference between what you home is worth and how much you owe the lender. So, this is the amount of your house that you own and you can receive that money with a lump sum payment that is paid back overtime. This allows you to be able to put down a larger down payment without it coming out of your own pockets.
Forced appreciation is also another option. This would involve renovating you home and upgrading the property so you can list your house on the market and get more money from it. This will generate greater profit allowing you to buy a larger house.
If you are in a seller’s market at the time you want to buy a larger home you could have the seller pay the closing costs. Sellers want to move quickly in a seller’s market so this could come to an advantage to you. If they pay the closing costs this leave you money to out towards you larger home!
If you know someone who is looking to buy or sell, contact me!
Danielle.Nazinitsky@compass.com
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