Anyone who’s paying attention–even just a little–to the current Seattle-area real estate market knows that there’s just not enough inventory to go around. There are many, many people moving to the area who want to buy houses, but can’t seem to land one. 
There are also a lot of folks who would love to move up to a bigger/better house, but unfortunately bought at the worst time ever (2007-2008) and can’t quite swing it yet. (Sound familiar, people who bought homes and started families around then?) It can be agonizing to hear “Sell now! You’ll make a killing!” but realize that you can’t because of when you bought. It’s tough to find the money for a down payment on the next place when you’re lucky to break even!
So You’re Saying There’s a Chance?
That said, if you would love to move up but think you can’t yet, there may be hope. Here are a few things to consider:
- Have you had a recent comparative market analysis (CMA)? Things have changed a lot in the last year, even the last few months. You may be in better shape than you thought.
- Interest rates are still SUPER low. Those with the best credit can still generally stay under 4%. If you can find a way to get some additional funds for the down payment on your next home, that will help. You may also be surprised what options are available for putting less than 20% down. Talk to a lender to get the most accurate picture of your circumstances, and definitely reach out for my list of preferred lenders.
- Consider your timing. Yes, it’s pretty much impossible to win a bidding war with a contingent offer, so you’ll likely need to sell first and close before you can buy. (Unless you’re able to qualify for a 2nd mortgage and pay for 2 at the same time!) On the plus side, homes are selling so fast these days, it shouldn’t take long! Then, while your current home is under escrow, find a temporary place to live for at least a couple of months while house hunting. Maybe as much as 6 months to a year if you’re very particular. Granted, moving twice doesn’t sound very appealing, but you’ll have most of your stuff packed up already so you can just store boxes. This will also give you more flexibility–and less pressure–in your search for the next house!
- At the very least, if you get a CMA and talk to some lenders but you’re just not quite there yet, take heart: The hard work is done and now you can plan. It may be disappointing to learn that you’re not yet able to move up like you wanted, but you WILL have the information to make a solid plan so you’re 100% ready to go when the time comes.