How to Make Your New House Resolution Come True
For most of us, the past few years have involved spending more time home than ever, for better and for worse. Therefore, it should come as no surprise if your New Year resolutions include getting a new house.
You may have found out the hard way that your current dwelling does not fit the needs of your family anymore, or you are finally ready to make a move from renter to buying a house. No matter your situation, this article will help you make your new year's house resolution a reality.
New Year New House for Property Owners
Your family has changed, your needs have evolved, and you no longer feel comfortable in your current property? You are not alone! The pandemic has undoubtedly changed how we see our abodes.
You may be tripping over each other after spending months using your home as a gym, a classroom, and an office – often all at the same time. The big cross-country (or cross-town) move and career change that has been at the back of your mind for years suddenly seem more urgent than ever. Months of lockdown and limited social interactions have given you the time and space you needed to tackle downsizing and settle your life as empty nesters.
No matter your circumstances, you feel prepared to make this the year you put your property on the market and turn the page. Here is how to make your current property ready to sell to tackle your new year new house resolution.
Decluttering and organizing
The less you own, the easier – and the less expensive – it will be to move your belonging to your next home. Maybe you are finally ready to make a big move coast-to-coast, dramatically changing your lifestyle, or you are unexpectedly feeling the appeal of the suburbs, with more room indoors and outdoor for your growing family. Either way, there is bound to be a lot of "stuff" you have accumulated throughout the years. Now is the time to get rid of things that do not serve you anymore.
From outgrown baby toys to orphan cables and electronics, we tend to stock up and keep everything, just in case that can come in handy again. Do you really want to take the remains of your old life along with you as you are ready to start a new chapter?
Do not hesitate to be ruthless when it comes to downsizing and organization. If you have not used it in years, it is unlikely to be needed again. Broken, mismatched, and outdated items take room for no reason. Start your new year's new house resolution by unloading your current home from the things you do not wish to take along with you.
Storage items and your wardrobe are two areas where you can downsize and get organized to start your next chapter on the right foot long before your house is ready to go on the market. You can slowly make your way through every room, from the basement to the attic, possibly renting a storage unit to put away extra items until you are ready for the big move. As you make space, it will also be easier to decorate, stage, and get your property free of clutter to be ready to show in an instant when needed.
Depending on the condition of the items you want to get rid of, you can decide if you wish to sell them, donate them, or throw them away if they are beyond repair. Do not forget to make time in your schedule to drop off unwanted items at the donating or recycling center instead of pushing back this essential task indefinitely.
Organizing and downsizing can also be an emotional time since items are often attached to many memories, good and bad. Be kind to yourself but do not delay this task too long if you are serious about your new home new house resolution.
Checking for health and safety issues
The past few years have certainly taught us how precious life and health are. It can also be an essential selling point if you are thinking about putting your home on the market. Take advantage of the spur of energy you pull from your new year’s resolution to take a cold, hard look at the safety issues around your house. For example, when was the last time you checked the battery on your smoke detectors and dryer lint filter?
It is the perfect occasion to dive into parts of your home you may not visit every day, such as the utility room. Check the age and energy efficiency of your furnace and HVAC system. Change the furnace filters regularly and keep up with regular maintenance, so all your systems are ready to undergo the careful eye of a home inspector when the time comes. With cold weather well on its way, it may also be time to get the ducts serviced and inspected if you have a forced-air system and checked for leaks.
Older homes are charming, but they can also hide issues such as peeling paint and mold. You may have grown used to living with broken door handles and missing handrails. However, these issues will serve as a red flag for potential buyers. Besides, they can also be significant obstacles to financing.
An excellent way to get a head start on selling your house is to get your home pre-inspected and avoid nasty surprises at the last minute. It is also a good idea to check for radon since it is a requirement for many government-backed loans.
Planning for strategic home improvement projects
Getting your home ready for sale is often synonymous with many home improvement projects so your property can look its best. Unfortunately, while these construction projects will help you get top dollar in the long run, they are also time-consuming and expensive.
If your plan includes some DIY projects, start early so you can spread them throughout the preparation process. It is also an excellent strategy to investigate the cost of labor and materials. While some tasks may be easy – such as changing light bulbs or painting, for example – others can be more challenging and require the help of a professional. If you are not entirely confident in your skills, do not get started on something you may not have the time or capacity to finish in time to put the property on the market.
Kitchens and bathrooms may be significant selling points, but they are also expensive – possibly more than you would recoup in the sale of your property. Instead of an entire renovation project, you can do minor upgrades – such as changing the hardware, updating the appliances, and repainting the cabinets – that can get the same “wow” factor without the hefty price tag.
New-Year-New-House Resolutions for New Home Buyers
Buying your first home is always an exciting time, but it can also be very stressful and require a lot of planning before you hold your new house keys. Here is how to put all the chances on your side so that 2022 by the year you finally become a homeowner.
Increase your credit score
Increasing your credit score is essential if you are thinking about purchasing a home. Better credit will give you access to better mortgage options, possibly saving you thousands of dollars in the long run. While interest rates so far remain near historic lows, they will likely increase in the near future to keep up with the inflation. In other words, it is more important than ever to take the time to advance your buying power as much as possible.
Depending on where you start, it could take months before you reach a good enough credit score to purchase the house of your dreams. Start by checking your current credit to evaluate the situation and set up a game plan. If you receive a bad surprise, do not lose hope on your new year new house resolution: you will still have time to proceed to credit repair if needed.
Make sure that you are paying your bills in time and in full, for example, by setting automatic payments if you are thinking about going house hunting. It is also a good idea to repay debt as much as possible and avoid opening new credit lines. However, avoid closing older credit cards, even if you have a zero balance on these accounts: a longer credit history can serve as a favorable indicator for lenders and help you bring up your credit score with little effort on your hand.
Save up for the new house
You have certainly made saving up for a down payment part of your New Year's resolutions if you consider buying a house in 2022. However, have you also thought about the numerous expenses that come with purchasing a home?
How much you need for a down payment will depend on your credit score and the type of property you intend to purchase. If you are interested in a house in good condition that would qualify for a government-backed loan, you may not need to set aside 20 percent to become a homeowner. However, your monthly payments may be higher if you need to purchase private mortgage insurance (PMI) while you build equity on the property. Your lender may also require that you have reserves set aside.
The home buying process itself is also expensive: the buyers must pay some inspections and closing costs. As a rule of thumb, you should set aside another 2% to 5% of your total loan amount to pay for home buying-related expenses.
Related: 5 Things to Know if You're a First-Time Homebuyer [Cambridge, MA]
Finally, homeowners have many expenses that renters may not be familiar with. Depending on the type of property you are considering, it is a good idea to inquire about maintenance and utility costs in your area, property taxes in the town you are considering, plus setting some cash aside for improvements you want to get done before moving in and furnishing your property.