With our bellies full from the Thanksgiving cornucopia and Christmas and Hannukah right around the corner, this is typically a time of year where we take a moment to reflect and give thanks. Yet it can also be a time when relatives visit and we realize we don’t necessarily have the home space we desire. Perhaps a guest bedroom and larger great room for entertaining make it to the wish list. Or maybe recognizing that a designated office space is in order since the dinning room table is in use and four walls with a door would make concentrating for work infinitely easier.
Regardless the scenario the holidays can be the impetus to consider a new home for the holidays. In this era of countless jobs going virtual our needs have irreversibly changed. Also, now more than ever we are witnessing multi-generations coming together under one roof whether a college graduate returns home due to high rents or a grandparent moves in for health reasons. The bottom line is that lifestyles have shifted which often necessitates more space.
A contributing factor with families and professionals sitting on the fence and not taking action to move up into a larger home are the sensationalized reports about housing prices and lack of inventory. This can instill fear and render homeowners feeling hopeless. However, there are endless possibilities when the right resources are brought to the forefront and made accessible. One such tool is a bridge loan which will provide the funds necessary to purchase a new home with cash, then sell the existing home afterwards.
The benefits of this particular loan are threefold. First, making a cash offer in this competitive market carries a lot of weight and will likely be most attractive to the seller. Secondly, the ability to move once and not have to fret about timing, a leaseback or double move into a temporary dwelling after the traditional sale of your existing home while shopping for the new home can prove invaluable. Third, the convenience of listing your old home without living through the showings minimizes disruptions during this exciting and monumental transition.
Another viable option available is a result of our incredible market. Anyone who peruses Zillow to window shop is often amazed by the current value of their home. Homeowner equity throughout Flagstaff is extraordinary and can be utilized in several different ways. A cash-out refinance can provide a homeowner with liquidity to put towards a new home. These down payment monies can facilitate the purchase of a bigger home or be utilized towards buying an investment property to rent or Airbnb. In the former scenario you can keep the smaller home to rent or can sell it and transfer that equity into your new home.
Here is a simplified example based on average home prices in Flagstaff. A homeowner might have purchased a home three years ago for $500,000. Today the home will sell for $750,000. The difference represents approximately $250,000 in equity. A larger dream home might cost $850,000. The $250,000 can be utilized towards new home thus making the mortgaged amount only $100,000 more than the smaller home. (Purchase price of new home at $850,000 less down payment of $250,000 equals $600,000.)
Make sure to speak with a professional to learn more about the particulars of these programs. If you would like to hear from a panel of experts to better understand your buying power, gain knowledge about new neighborhoods on the horizon, ask a CPA about tax consequences, and find out why a new loan payment will be similar to existing, there is home buyer and seller event series forthcoming. This is an opportunity to ask questions and leave with tools and resources available now. Perhaps a new home for the holidays isn’t just a dream.
3 – Part Buyer / Seller Educational Series – Join Us!
- Move-up Buyers | Thursday, January 27th at 5:30pm
- First-time Homebuyers | Thursday, February 17th at 5:30pm
- Investors & Airbnb | Thursday, March 3rd at 5:30pm
Clear Title | Academy Mortgage
2076 S Woodlands Village Blvd | Flagstaff, AZ 86001
RSVP today to reserve your seat! Call 928-421-3481 or text 602-524-5674 or email [email protected].
Text Lori