Your guide to home upsizing

Deciding to upsize your home is a significant milestone that comes with many considerations. Whether your family is growing, you need more space, or you’re simply ready for a change, upsizing can be an exciting yet complex process. Here’s a comprehensive guide to help you navigate the journey of moving to a larger home.

1. Assess your needs and budget

Before embarking on the home upsizing journey, it’s crucial to clearly understand your needs and establish a realistic budget.

a. Identify your needs:

• Determine the additional space required (e.g., extra bedrooms, larger kitchen).
• Consider future needs such as home offices or space for hobbies.
• Think about location preferences, such as proximity to schools or work.

b. Establish a budget:

• Review your current financial situation and determine how much you can afford.
• Factor in all costs, including the new mortgage, moving expenses, and potential renovations.
• Consult with a mortgage broker to understand your borrowing capacity and get pre-approval for a home loan.

2. Plan the sale of your current home

Selling your current home is a critical step in the upsizing process. Proper planning can help you get the best price and ensure a smooth transition.

a. Prepare your home for sale:

• Declutter and depersonalise your home to make it appealing to buyers.
• Make necessary repairs and consider minor renovations to increase your home’s value.
• Stage your home professionally to highlight its best features.

b. Set the right price:

• Work with a real estate agent to set a competitive price based on market conditions and comparable sales.
• Be realistic about your home’s value and be prepared to negotiate.

c. Market effectively:

• Use professional photography and create compelling listings for online platforms.
• Hold open houses and virtual tours to attract potential buyers.
• Leverage social media and other marketing channels to reach a broader audience.

3. Find the perfect upsized home

With your current home on the market, the next step is to find your ideal larger home.

a. Research potential neighbourhoods:

• Consider factors such as school quality, commute times, amenities, and future development plans.
• Visit potential areas at different times of the day to get a feel for the neighbourhood.

b. List your must-haves and nice-to-haves:

• Create a list of essential features (e.g., number of bedrooms, backyard size) and desired features (e.g., pool, home office).
• Be prepared to compromise on non-essential features if necessary.

c. Work with a real estate agent:

• Engage an experienced agent who understands your needs and can help you find suitable properties.
• Attend open houses and private inspections to explore different options.
• Be ready to act quickly in competitive markets.

4. Coordinate the buying and selling process

Synchronising the sale of your current home and the purchase of a new one can be challenging. Here’s how to manage this process effectively:

a. Consider a bridging loan:

• If there’s a gap between selling your current home and buying a new one, a bridging loan can provide temporary financing.
• Discuss bridging loan options with your mortgage broker to understand the terms and costs.
• Apply for a bridging loan directly with Funding.

b. Negotiate settlement dates:

• Coordinate with the buyers of your current home and the sellers of your new home to align settlement dates.
• Aim for a simultaneous settlement to avoid the need for temporary accommodation.

c. Prepare for moving day:

• Hire professional movers and start packing well in advance.
• Create a moving checklist to ensure nothing is overlooked.
• Notify utility companies, banks, and other essential services of your move.

5. Settle into your new home

Once you’ve successfully upsized, take the time to settle into your new space and make it feel like home.

a. Unpack and organise:

• Start with essential items and gradually unpack the rest.
• Take the opportunity to organise your belongings and set up your new home efficiently.

b. Explore your new neighbourhood:

• Introduce yourself to neighbours and explore local amenities such as parks, shops, and restaurants.
• Get involved in community activities to meet new people and feel more at home.

c. Plan for future improvements:

• Identify any immediate repairs or improvements needed in your new home.
• Create a list of long-term projects to enhance your living space further.

Example to illustrate home upsizing

Imagine a family in Orange looking to upsize from a two-bedroom apartment to a four-bedroom house with a backyard. They begin by assessing their needs, determining that they require more space for their growing children and a home office for remote work. They set a budget based on their financial situation and consult with a mortgage broker to get pre-approval for a new home loan.

Next, they prepare their current apartment for sale, making minor renovations and staging it to attract buyers. They work with a real estate agent to list the apartment at a competitive price and market it effectively. Meanwhile, they research potential neighbourhoods, visiting several areas to find the perfect community for their family.

Once they find a suitable home, they negotiate a simultaneous settlement date to avoid the need for temporary accommodation. They secure a bridging loan to cover the short period between selling their apartment and buying the new house. After moving, they take the time to unpack, organise their belongings, and explore their new neighbourhood, gradually making their new house a home.

By following these steps, you can successfully navigate the upsizing process, ensuring a smooth transition to a larger, more suitable home for your needs.