April 24, 2020
3 MINUTE READ
If you’re a second-time home buyer, you will be presented with a unique set of both opportunities and challenges. When it comes to buying a home, the stress factor doesn’t discriminate. In other words, no matter how many times you’ve gone through the process or how great of a team you’re working with, there will almost certainly be some part of the process that is sure to cause your heart to race (even if just a little bit).
While there are some challenges that are unique to first time home buyers, there are others that affect all home buyers equally — and that includes second-time home buyers. For instance, when there aren’t many available homes in your area, it will create an environment that is very competitive for buyers. Fortunately, even in these conditions, second-time home buyers have a slight advantage in that they can often act quickly to keep up in a market that seems to be moving at lightning speed. After all, as veteran home buyers, they are often able to spot potential red flags faster and have the confidence to make decisions quickly.
If you’re a second time home buyer, here are some tips that can help make your home buying process a little easier.
…a down payment, that is. Of course, saving for a down payment is difficult for all home buyers. In fact, nearly 15 percent of home buyers report feeling like saving for the down payment was the most difficult part of the entire process. But second time home buyers face unique challenges when it comes to saving for a down payment.
For one thing, second time home buyers can’t dip into their IRA without penalty — that perk is reserved for first time home buyers only. Also, life tends to get more complicated as it goes on, with parents aging, adding kids into the mix, and more. This can often make having stable, substantial savings difficult.
So, as a second time home buyer, what can you do? Set a budget — and stick to it. Having a clear understanding of where your money is coming from and going to each month is a great way to start building your savings. Another way to boost your down payment is to sell your home first. We’ll talk more about that later.
By the time you’re even thinking of buying your second home, chances are good that you’ve done your fair share of moving, so you probably understand why moving has been rated one of the most stressful situations that you can go through. Sure, all moves are challenging and chaotic, but there is definitely an argument to be made that moving from one house into another is harder than moving from an apartment to a house. You’ll likely have more boxes and furniture to move, more decisions to make — and less time to do it all in.
How can you prepare? Do your prep work early. Declutter each room early on, and don’t forget about the attic and the garage. Donate anything you won’t use, and sell anything that’s still in good condition.
When you’re a second time home buyer, especially if you are trying to sell one house and buy another at the same time, it’s important to work with a real estate agent who is experienced in managing both transactions simultaneously. If you’re selling your old home while looking for a new one, your Reali agent can help. We take the hassle out of home buying and selling. And, even better, it is sure to save you money.
At Reali, we offer honest and transparent real estate service, with experienced local agents, big savings, and zero pressure. Are you a second time home buyer? Check out Reali Trade-In. We’ll help you buy a home while selling your home. Ask your Reali agent for more information.