Can Our Home's Equity Help Us Buy a Bigger House?

For growing families in the Greater Atlanta area, upsizing their home is often a top priority. Families with kids or work-from-home needs may find their current space simply isn't cutting it anymore. But how can you move into a new home without dealing with the stress of moving twice or facing home sale contingencies?

The Problem: Moving Without Making Two Moves

Many families who bought a starter home 5 to 10 years ago have built significant equity. Yet, transforming that equity into a larger home while timing the sale and purchase perfectly can be a headache.

In markets like Gwinnett County, low inventory means fewer homes are available for sale, making it difficult to find that forever home quickly. The desire to settle into top school districts like Mill Creek or Peachtree Ridge only adds to the stress, as the timing of school calendars often influences when families wish to move.

When considering an upsized home with 4-5 bedrooms, a bigger yard, and amenities like swim or tennis facilities, it becomes tricky to do this transition smoothly—especially when you have to sell your current home to fund your next purchase.

The Agitation: The Risks of Contingent Offers

When families need to sell their current home to buy the next, they often face contingent offers. A contingent offer means your purchase is dependent on the sale of your current home. Unfortunately, sellers prefer non-contingent offers because they’re simpler and face fewer potential setbacks.

Imagine finding the perfect home with a fenced yard and plenty of space for the kids, only to watch it slip away because your offer was contingent on selling your existing home. That’s a heartbreaker, especially when you’ve already primed your family for the big move.

If you wait too long to sell in a competitive market with low inventory, you might have to settle for less in a rushed sale, which can hurt your negotiating position and financial outcome.

The Solution: Using Strategies to Move Smoothly

Thankfully, there are ways to transition to a bigger home without making two moves or depending on that home sale contingency.

1. Bridge Loans: Buy Before You Sell

Bridge loans are short-term loans that allow you to purchase a new home before selling your existing one. By tapping into your home’s equity, you can make a non-contingent offer, increasing your chances of sealing the deal.

These loans provide a financial bridge, closing the gap between selling your current home and buying the next one.

2. Home Trade-In Services

Several real estate agencies offer trade-in services, providing a guaranteed sale of your current home. This service lets you bid on your new home as a non-contingent buyer, preventing the need for temporary housing or storage. With both closings aligned, you can manage the move as smoothly as possible.

3. Use Your Home’s Equity as a Down Payment

If you have more than 40% equity in your current home, consider a home equity line of credit (HELOC). This allows you to use part of your equity as a down payment on your new place while keeping your offer strong, because it does not rely on selling your current home first.

4. Prep Your Current Home for Sale

Mo matter which route you take, thoroughly preparing your current home for sale can speed up the selling process and strengthen any contingent offer you make. This includes staging, taking professional photos, and making any necessary repairs.

Work with a local agent with experience in flexible selling solutions to coordinate your strategy, timing, and market readiness, ensuring the best outcome without the double move pressure.

Weighing the Pros and Cons

Here’s a simple comparison of your moving options:

| Option | Benefits | Considerations | Ideal For ||---------------------------|--------------------------------------|-------------------------------|--------------------------------|| Traditional Contingency | Low risk; no double debt | Weak offer in a fast market | Buyers in less competition || Bridge Loan/Trade-In | Strong offer; avoids double moves | Short-term loans may have fees | Equity-rich families || Equity Leverage (HELOC) | Quick offer; no contingency needed | Risk if current home sits too long | Dual-income households |

Local Perks for Gwinnett County Families

In the Greater Atlanta area, these strategies have added resonance. Gwinnett's competitive neighborhoods like Mill Creek and Peachtree Ridge are home to top schools and sought-after amenities. It’s a region that sees fast property movement, so being prepared is a must.

For families needing to shift smoothly, tools like our "Trade-In Your Home—Upsize Without Two Moves" checklist and quick access to school zones add value in the process. These solutions are tailored to thriving areas and provide an edge in Atlanta’s bustling market.

Final Tips for Families Looking to Upsize

• Consult Early: Meet with a knowledgeable local agent to weigh your selling and buying options effectively.

• Get Inspected: Perform a pre-inspection for your current home and get market analysis done before deciding on your next dwelling.

• Implement Digital Tools: Use online platforms for updates on listings, offers, and a seamless buying and selling experience.

• Enhance and Market: Invest in home staging, decluttering, and producing high-quality virtual tours to increase appeal.

By employing these strategies and tools, families in Gwinnett can manage moving to a forever home without the stress of two moves. This is a way to focus on finding a place that perfectly suits family needs without disruption.

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