If buying or selling a home is part of your plans, start with three things: understand the housing market, define your goals, and work with professionals who can help you make informed decisions.
High inflation has affected the economy and the housing market, and it may have affected your wallet, too. That makes it important to look beyond the idea of moving and get clear about what you want from the decision.
You do not have to figure everything out at once. Start with your reasons for moving, the kind of home you need, and your financial preparation. Then use those answers to guide your conversations with a local real estate agent and lender.
Start With Your Needs, Not Just the Market
Understanding market conditions matters. So does understanding how a move would fit your life, both now and in the years ahead.
Danielle Hale, Chief Economist at realtor.com, explains:
“The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, so that you can stay in your home long enough that buying is a sound financial decision.”
Use that perspective as a starting point, not a promise of a financial outcome. Ask yourself what you need a home to do for you and how long you can picture it meeting those needs.
Before browsing homes or planning a sale, work through the following questions. Write down your answers so you have something concrete to discuss with your advisors.
1. What Is Motivating You to Move?
You are thinking about making a move for a reason. What is it?
Your needs may have changed in ways your current home cannot address. Or you may be ready to become a homeowner for the first time and have a space that is truly your own.
Whatever is happening in the market, there are still compelling personal reasons to buy a home. The important question is which reasons apply to you.
Put Your Reason Into Plain Words
Try finishing this sentence: “I want to move because my next home needs to…”
Be specific about the problem you want to solve. Rather than stopping at “I want something different,” describe what is missing and what you hope will change.
- What no longer works about your current living situation?
- What would owning your first home mean to you?
- Which needs matter now, and which do you expect to matter in the years ahead?
- What would make the move feel worthwhile?
Share those answers with an expert advisor. Use your motivation as a guidepost when discussing your options, rather than losing sight of it once the search or selling process begins.
2. What Does Your Next Home Need to Look Like?
Knowing you want to move is different from knowing what you want to move into. Take time to describe the home you are looking for before you begin comparing options.
Keep your budget in the conversation from the start. Work with a trusted real estate professional to balance what you want with what you need.
When the available supply of homes for sale grows, buyers may have more options to choose from. Whether your choices are broad or limited, keep returning to the essentials you identified.
Separate Essentials From Preferences
Create three lists:
- Must-haves: The needs your next home must address.
- Nice-to-haves: Features you would enjoy but could live without.
- Flexible items: Preferences you are willing to reconsider.
Go back to your reason for moving as you build these lists. Does each must-have support that reason, or is it something you simply like the idea of having?
The better you understand what is essential and where you can be flexible, the easier it can be to identify a home that is right for you.
Ask your agent to review the lists with you. Keep your budget alongside them, rather than treating the financial discussion as a separate step.
3. How Ready Are You to Buy?
Before getting too far into the process, get clear on your budget and savings. Your wish list deserves attention, but so does your financial starting point.
Working with a local agent and lender early is the best way to assess your readiness and understand what preparation may be needed.
Bring These Questions to Your Lender
- How should I approach setting a homebuying budget?
- How much should I plan to save for a down payment?
- What is involved in getting pre-approved for a home loan?
- If I am selling a home, how should I assess my current home equity as part of the discussion?
If your move includes selling your existing house, make that clear from the beginning. Include your current home equity in the planning conversation rather than looking at the purchase alone.
You do not need to arrive with every answer. Bring what you know about your savings, budget, and goals, then ask your agent and lender what to address next.
Get Help With What You Do Not Know
Buying or selling a home is a significant process that takes expertise to navigate. If it feels overwhelming, you are not alone.
According to a Harris Poll survey, one in five respondents saw a lack of information or knowledge about the homebuying process as a barrier to owning a home.
A trusted professional can help bridge that information gap with advice and an explanation of the market. Ask questions whenever something is unclear, and request plain-English explanations of the steps ahead.
Do not treat uncertainty as a reason to abandon your goals. Treat it as a reason to start a conversation.
Your Next Step: Put Your Plan on Paper
Write down why you want to move, what your next home must provide, and what you know about your budget and savings. Add the questions you still need answered.
Then reach out to Ed Parcaut to talk through your mortgage questions and financial preparation. Start with a clear conversation about your goals and the practical next steps toward buying or selling a home.
