Moving home is a big decision. We’re not just talking about the financial decision that you’re making. There’s an emotional weight there too. If you’re moving with your family, you need to think about how it’s going to affect them. In most cases, the answer is hopefully going to be as little as possible. But you’re still going to spend a lot of time thinking about these concerns. If you know how to deal with the financial issues of moving that you might face, you’ll be able to concentrate on more important things.
A Slow Home Sale
A Slow home sale can have a devastating effect on your finances. You might think that there’s no harm in your home taking a while to sell. It gives you more time to look at houses. If you’re not in a rush, there’s no problem. If you think that, you’re overlooking a vital part of information. If your home takes a while to sell, your estate agent will assume there’s a problem. They’ll drop the asking price, and you’ll get less money for your property. Depending on how long it stays on the market, the value of your home could drop by twenty-five percent. You could lose thousands. If you’re thinking “I need to sell my house fast,” there’s one ideal solution. Rather than wait for a private buyer, you can sell to a company set up for this purpose. They’ll buy your home off you at market price before it starts to drop.
Bad credit is another financial hurdle that you don’t want to face. Having a bad credit score affects how desirable you are to loan companies. If you have a history of not paying your debts quickly, you’re going to struggle to get a good mortgage. Very few people can buy a new home without a mortgage. Even if they are selling an old one. There are two options here. You can take a bad credit mortgage. Or, you can fix your credit rating. We suggest the latter as it’s easy to do and it will save you money. To fix your credit rating, you need to pay off any outstanding debts. Then work to spend a few months not owing anything to anyone until you look to buy a new home.
A Bidding War
Finally, you might get into the situation where you put an offer in on a home. The offer is accepted to the point where you plan a home survey. Suddenly, you receive a phone call from the estate agency selling your home. Your offer has been gazumped. Someone is now offering a higher offer for the house or the property. It’s a nasty practice, typically conducted in bad faith, yet perfectly legal in most places. It then starts a bidding war. A bidding war can be dangerous as you can end up paying a lot more than a property is actually worth. We suggest you pick the amount you would have been willing to pay for the home before you put in your first offer. Don’t go above this value. Otherwise, you’ll be losing money on a property that isn’t worth it.