The New Year is upon us and 2023 is already in full swing. Some of us have already made and broken some New Year’s resolutions, but there are bigger goals that may be on your mind for this year. If you are planning to buy and/or sell a home in 2023, the time to start planning is now.
The active spring and summer markets will be here before you know it. The slower winter season presents a great opportunity for homeowners to get ready for their big move, which may involve both a sale of existing property and a purchase of a new home. First-time buyers may be thinking about buying a starter home or condo this year.
These are excellent goals to have because homeownership brings many financial, practical and emotional rewards. The main question is how prepared are you to make such a big move? There are reasons we mentioned the words “financial, practical and emotional.” It pays to be ready on all three fronts if you want to make a truly successful move. Let’s talk about each of these items and how 2023 home buyers and sellers can be best prepared.
Financial Preparation
Whether you are buying your first home, moving up, downsizing, investing in additional property or going from homeownership to a rental situation, your real estate transaction(s) will have a major financial impact on your life. Do not take your important home buying or selling decisions lightly.
Anyone planning to buy a home and apply for a mortgage loan will need to get their finances in order. Save up for a larger down payment, pay down existing debts, stay current with debt and bill payments, and work to improve your credit score in order to qualify for the lowest possible mortgage rate. Current homeowners should be able to utilize their home equity as good leverage for a new home loan. However, you may also want to consider selling first and renting temporarily while you search for your new home. This will give you more time to find the right place, while also making both your home sale and your home purchase much less complicated. Contingency deals can get complex and confusing, so the right planning could take a lot of stress off your plate.
Practical Planning
Practical real estate planning is all about figuring out where you want to live, how you want to live and what you want to spend. Remote work and schooling opportunities have opened up the map for some people. You may have more options regarding where you can live nowadays. You also have to prioritize the type of property you want to buy.
Do you currently have children or pets? Are you planning to have children in the next 5-10 years while living in your new home? Are your grown children moving out soon? Do you have elderly relatives who may need to move in for better care? Amenities like home offices, home gyms and private bottom-floor bedroom suites are more meaningful than ever. Current homeowners need to assess their housing priorities and this will help shape better decisions on their next home. New home buyers will need to figure out a realistic budget and find something that works well for their lifestyle. Be prepared to be flexible. Compromises often have to be made when looking to buy your first home.
Emotional Impact
Lastly, you have to recognize there will be many emotional components of a big move. You are saying goodbye to one home and hello to another. It’s not always as easy as it sounds. The more you think through the details and work out your real estate plan, the smoother the process will go. Don’t make a move if you aren’t ready, but don’t wait longer than you should.
Figure out what is right for you. Start getting prepared now—financially, practically and emotionally—and get ready to make your move in 2023. If you are thinking about buying and/or selling real estate in the Southeastern Pennsylvania or Northern Delaware areas this year, contact The Cyr Team today. Let us help provide you with the guidance and support you need, so you can be as prepared as possible.