Does "Moving Up" Make Sense

Here are a few questions that might help you decide whether you’re ready for a home that’s larger than your current location. Answering yes to most of these questions might be a sign that you're ready to move.

1. Have you built substantial equity in your current home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you’ve owned your home for five years or more you may have significant, unrealized gains.

2. Has your income or financial situation improved? If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving.

3. Have you outgrown your existing locale? The area you chose for your first home in Steamboat might not be the same location you want to settle down for good. For example, mountain condos can be an affordable first purchase but you might consider a downtown home to raise children and so on.

4. Are there reasons why you can’t remodel or add on? Sometimes you can create a bigger home by adding a new room or building up. But if your property isn’t large enough, your municipality doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best option.

5. Are you comfortable moving in the current housing market? If the market is hot, your home may sell quickly and for top dollar, but the home you buy also will be more expensive. With the recent Steamboat market slow down, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home.

6. Are interest rates attractive? A low rate not only helps you buy a larger home, but also makes it easier to find a buyer.