Upgrading to Your Next Home

Oftentimes homeowners will choose to upgrade, or “move-up”, from their current home to a home better suited for their growing family. This can be a complicated and overwhelming process - “Is the timing right?” “Can we afford it?” “How do we go about doing this?”. Sophia makes the process of finding and buying a bigger home as seamless and enjoyable as possible and has helped hundreds of clients in Palo Alto, Los Altos, Menlo Park, and the surrounding areas determine the best strategy and timing for their unique situations and needs.

Which upgrade approach is best for your situation? Read on to see three approaches to buying your next home with example real-world clients Sophia has helped. For a personalized assessment

Approach #1: Buy before selling

Minimize your moving time and costs by selling your old home after buying your new, bigger home.

Properties

  • Goal: Upgrade from a 2-bedroom, 1-bath, 860 sq. ft. home to a larger home in a good school district
  • Challenge: Not enough down payment without selling the current home first
  • Preferences: Avoid having to move twice

In 2018, Sophia helped a lovely couple find their first home in San Mateo for $1,350,000. A few years later they were ready to start a family, but their 2-bedroom, 1-bath, 860 sq ft home was getting very crowded and they didn’t have enough funds for a downpayment without selling their current home. At the same time, it was important to them that they wouldn’t have to move more than once. They turned to Sophia for help.

Working with Sophia: To meet the needs of the couple, Sophia helped them find a lender that would approve them for a lower down payment and higher loan amount for the purchase. After selling the current home, they could use the equity to pay down the loan amount and lower the monthly mortgage. Sophia worked with them to find a neighborhood where they could purchase a new home with over 2,500 sq. ft. and top-rated schools. They then put their home on the market and within two weeks they sold their home for $1,770,000 with multiple offers. Since they lived in the old house as a couple for over 2 years, they didn't need to pay any income tax for the capital gain of over $300,000. They used the proceeds from selling the old home to pay down the loan amount of the new home and lowered the monthly mortgage payment.

A word from the client: "My colleague referred Sophia to us more than 5 years ago, and she has helped us buy and sell three properties since then. She cared about our needs and gave us unbiased advice on locations and properties. When it's time for us to sell our home, Sophia provided a clear go-to-market plan and was very candid about what we could expect in the process. Sophia put so much time and effort into the prep work to make our home appealing to potential buyers and for us to have the best chance to maximize the sale price. There was a very similar property for sale in our neighborhood at the same time. Sophia's pricing and offer reviewing strategies worked and we received multiple offers within a week. We were very pleased with the result. Sophia is professional, experienced, knowledgeable about the local markets, well organized and extremely thoughtful. We could not recommend Sophia more highly."

Approach #2: Sell before buying

Get a precise budget for your new home by selling your old home before buying your new one.

Properties

Client’s criteria and situation:

  • Goal: Upgrade from 3-bedroom, 1,362 sq ft home to a larger home suitable for a family of 4; quiet neighborhood, shorter commutes
  • Challenge: Timing - take advantage of hot spring market as well as the forecasted slower market
  • Move Up strategy: sell current home first to qualify larger loan and know precise down payment they could afford

Sophia helped a Sunnyvale couple purchase their first home in 2015 at $1,650,000, but after two children, their 3-bedroom 1,362 sq. ft. home could no longer support their needs. They turned to Sophia to help them take advantage of the hot spring market for a quick closing and a higher selling price, before mortgage rates increased.

Working with Sophia: The market was hot that spring, but Sophia expected interest rates to increase soon. Sophia knew that time was of the essence if the couple was going to maximize their selling price and mortgage rates while meeting the criteria for their next home. She advised the family to move to a rental property as soon as possible and prepared the home for sale within just two weeks! As a result, they received multiple strong offers and the clients were very pleased with the sale price of over $2,750,000. As expected, the market quickly went down quite a lot after rapid rate hikes. The clients were able to purchase their dream home over 2,700 sq. ft. in a cul-de-sac at a very good price. The timing was just right.

A word from the client: "Timing is everything. With Sophia's help, we were lucky to sell in a seller's market and buy in a much cooler market."

Approach #3: Consolidate two households into one

Expand your buying options for your next home by selling two or more properties.

Properties

Client’s criteria and situation:

  • Goal: Upgrade to larger, one-level home so that the mother can live with the daughter's family
  • Challenge: find a new home with enough space for the mother, father, and daughter to live comfortably, as well as a distinct and spacious living area for the grandmother.
  • Move Up strategy: Sell two homes

During the height of the pandemic, Sophia’s clients need to upgrade. The grandmother would be moving in with the family of three and they needed to upgrade into a larger home. Keeping the home one level, yet spacious enough for each family member to have their own space was top priority, but a lot needed to be considered before they could decide on a future home. Sophia would need to help sell two homes, while meeting requirements of multiple family members and timelines.

Working with Sophia: Moving two households and preparing two homes for sale were a lot of work for the clients, especially during a pandemic. Sophia listened to the requirements of each family member, prioritized needs, showed them homes in different cities, and outlined the pros and cons of each neighborhood to help them narrow down their options. She understood the importance of everyone having their own space and privacy, and prioritized this in her showings. After several months, Sophia helped the family find the perfect home in a great neighborhood that checked all the boxes! Through the moving and selling process, she provided a thorough checklist and timeline outlining to-dos, vendors, and milestones for the clients and prepared them with what to expect for every step of the way. As a result, they worked together seamlessly and achieved our goal with great results.

A word from the client: "We have known Sophia for several years and have done multiple transactions with her. We wanted to have my mother come and live with us and needed a larger, single-level home in a nice neighborhood, all within our budget. Sophia helped to show us homes in different cities to find what would really meet our needs. We had unique requirements, and Sophia patiently looked for many possible options to meet them. After we found the right home, Sophia helped us to sell our home in challenging circumstances. After limited showings at the height of the pandemic, Sophia never pushed us to accept an offer. We waited a couple of months, until Spring of 2021, and were able to sell the house off-market with a much better offer. My mother wanted to take some time to move and sell her home. Sophia helped her with a timeline to allow her to take her time but still take advantage of the spring market. Her house sold quickly and we were very happy with the results."

Is it time to upgrade?

Every situation is unique. If you’re interested in exploring whether or not it’s a good time for your family to upgrade, contact Sophia for a free consultation. She’ll work with you to understand your current situation, help you define your goals, and determine what a good path forward can be.

“Upgrading your home can be a complicated and overwhelming process, but my goal is to make it as seamless and enjoyable as possible. I have helped hundreds of clients in Palo Alto, Los Altos, Menlo Park, and the surrounding areas determine the best strategy and timing for their unique situations.”

Sophia Xu

Real Estate Professional

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