Want to move but feeling stuck?
So you’ve been in your current home for a while and you’re really wanting to make a move, but you’re feeling… stuck. You’re not alone! We talk to people every day who would ideally make a move, but feel unable to do so due to many reasons.
Feeling stuck in a current home and unable to move can stem from financial, emotional, logistical, or personal reasons.
One thing I’ve learned in this industry is that the fear of the unknown is often the largest stressor in the room. The unknown can make decision making impossible. But with a little homework on the front end, and the right people on your team, you can gather the information you need to truly understand what your options are. Knowing your options is the first step to making an informed decision!
First, let’s talk about some of the ways you may be feeling stuck and unsure.
Financial Reasons
You worry you’re ‘upside down’ on your home – Being upside down is owing more on the home than it's worth (negative equity), or having more dollars invested into a home with upgrades or renovations than what it’s worth.
In order to determine the level of equity you have (or don’t have) in your current home, we can help by completing an equity review. We walk through your current home to see it’s condition, and then we work to put together a market analysis to show us conservatively what your home would be likely to sell for. From there, we create a net sheet that shows you your equity.
If you have negative equity, you’ll either have to be willing to take the hit to sell or adjust your timeline in order to allow your home extra time to appreciate.
High Interest Rates – If you bought a home when mortgage rates were super low in the 3’s or even in the 2’s, it can be overwhelming to think about moving from a super low interest rate to a rate that’s more typical for the current market.
This is probably the biggest reason we see folks staying put. If you have a super low interest rate, the reality is that you will probably never duplicate that same interest rate again. So you have to ask yourself, are you willing to stay in your home f-o-r-e-v-e-r (as Squints from the Sandlot says) or are you going to bite the bullet and make a move with hopes of refinancing or paying off your next mortgage in the future.
You also have to take a hard look at what you can afford given the current interest rates.
Cost of Moving – Moving can be expensive logistically. Expenses related to selling, buying, renting, and relocating can add up.
There are proactive things you can do with timing your moves in order to minimize expenses, but at the end of the day pricing out and planning for these expenses is the best way to approach a move.
Job Insecurity – If your work life is unstable or unpredictable, it can make it hard to plan for a big change.
Our advice is to zoom out and take a realistic look at your finances and your job stability. Do you have an emergency fund saved up? Do you work in a field where it would be relatively easy to get another job? Are there tangible issues at your current job that make it unstable? If you’re self-employed, like we are, it’s even more important to make sure you have a financial cushion in place and a track record of creating the income you depend on.
Unable to Afford your Current Home – Sometimes you have a change of circumstance like a divorce or job change. Or you could be in the boat where you just bit off a little more than you could chew with your payment and a change in taxes and insurance costs could set you over the edge.
If this is the case, you may not want to move, but a move is inevitable.
Inability to Qualify for a Loan – Due to credit score, debt, or lending restrictions.
This is an easy one to figure out. We can connect you with a trusted lender who can tell you if you qualify and what you qualify for. We always recommend starting with your desired payment range monthly and then backing into what that means you can qualify for.
Market Challenges
High Housing Prices – Everybody knows that prices- in all categories- have gone up drastically in the past decade and housing is no different.
If you’re a current homeowner, you also may reap the benefits of this when you go to sell your current home as you may be able to sell it for more than you think.
Competitive Market – Inventory levels have also been a struggle over the past few years. However, we’re seeing less bidding wars today than we did several years back.
If prices and rates were lower, interest would increase and therefore the bidding wars would become more common, driving pricing up.
Low Inventory – You’re having a hard time finding homes in your desired locations. This plays into exactly what we’re writing about in this blog post. With a lot of homeowners feeling ‘stuck’ this is feeding into the lower inventory.
When you work with us, we come up with a plan to target your desired areas to search for homes that aren’t yet on the market. We also leverage our relationships and past clients in order to try to find options for you.
Rising Rent Costs – Increased costs aren’t only in play for homeownership. Renting has become very expensive as well, making it harder to transition from owning to renting or vice versa.
Personal Reasons
Fear of Change – Uncertainty about a new place and lifestyle can be overwhelming. But if something in your current home isn’t working, it may be time to overcome this fear.
We recommend doing a lot of research on the front end about where you may move. Really think through how the new home and location is going to improve your lifestyle or solve some of the problems you’re having with your current home or location. Spend a lot of time in the areas you’re considering moving, at various times of day and evening in order to get a handle on what to expect.
Attachment to the Home – This is a big one. We work with clients often who have been in their current home for quite some time. Home is the place where you make a lot of memories and it can have a lot of sentimental value.
Guilt – Feeling bad about leaving family, neighbors, or a community behind.
Logistical Reasons
Work & Commute – You may want to move in order to be closer to your job and lessen your commute time to better your day to day lifestyle.
Children’s Schooling – You may want to move in order to get your kids into a better school system.
Family Obligations – Taking care of aging parents or shared custody arrangements can impact your lifestyle. Being close by can lessen the strain.
Health Concerns – Accessibility needs or proximity to medical facilities comes into play for some considering moving as well.
Tangible Steps to Take
Like we said before, information is power. Here are some concrete next steps you can take in order to start gathering the information you’ll use to make decisions moving forward. Even if moving is not in the cards right now, having the information can help you plan for that future goal.
Step 1: Get an understanding of your home’s value, and what kind of equity you have in your home. We can help with this, whether you end up selling or not. We appreciate the opportunity to help on the front end. Sometimes that leads to a sale, and sometimes it gives you the info you need in order to stay put and that’s ok too!
Step 2: Understand what you can afford to purchase. Consider the equity you’ll walk away from your current home with and any savings you’ll put towards your new home. Don’t forget the out of pocket expenses you’ll have to purchase a new home, moving expenses and what monthly payment you can afford. We can connect you to a local lender to help you understand what these figures look like.
Step 3: Now that you know your numbers, start exploring what you can afford to purchase. Even if you’re not making a move right away it can be extremely helpful to begin watching and learning about the market. The last thing you want to do is sell your current home and then be disappointed with what you can afford to buy
The positive thing about being both a buyer and a seller, is that depending on the market, you’re likely going to capitalize on the market on either the buy or sell side which can help offset any added expense on the other end. For instance, if it’s a seller’s market… you’ll maximize profits on your current home but you may also have to pay more for what you buy. On the flip side, if it’s a buyer’s market… you may have to negotiate on your home sale, but then you can likely turn around and negotiate on your home purchase.
Step 4: Think through the timing and logistics of your move. There are a lot of ways to slice and dice buying and selling. We can help you weigh the pros and cons of different approaches.
We can’t stress how important it is to zoom out and look at the entire picture when approaching your move, both financially and logistically. Once you have the facts, you can make a good decision!
Helpful Questions to ask yourself…
Despite some of your fears and concerns, can you afford to make the move that you want to make?
Will making the move improve your lifestyle enough in order to justify the cost and time and mental load of moving?
Are the challenges you’re facing in your current home easily solvable? Can you make some changes to your current home that would make it work better for you and keep you from having to move? Anddd do those changes make sense compared to your overall home’s value and financial potential?
Lots to consider, my friends. We’re here to help!