Do you Need to Move?
It may sound strange coming from a Realtor to share this, but I wanted to offer an alternative idea as you plan your next home. As an advisor, it’s my job to help you consider all options when making big financial decisions. Moving is expensive and often a challenging chapter in life. As you decide on your next steps, it’s important to look at your choices at all different angles. Below, here are a few questions to ask yourself before taking the leap.
An estimated 35 million Americans move each year, which is about 10% of our population. We have increasingly become a society of movers and shakers, always looking for something bigger or better. Instead of cultivating contentment within our current living arrangements, we seek solutions in a new home all together. While the business of moving does contribute to our overall economic health, it is an expensive undertaking for individuals going through the process. Why are so many Americans relocating each year?
A 2017 United Census Bureau survey revealed that Americans have several reasons for moving. About 19% of people stated their move was associated with becoming homeowners for the first time. The next most common reason for a move was job-related, with 10% moving for a new job or job relocation, and 5.5% moving to have a better commute.
Moving to a “better” home accounted for 16% of the answers. Moving to a better home is definitely a subjective measurement and can vary based on each person’s wants and desires. 11.3% of answers cited “family reasons” as their catalyst to move. Family reasons can include moving closer to extended family, moving to be a caretaker for a family member, or moving to a better school district for their children.
Questions to Consider Before Moving
The decision to move is highly personal, and a choice only you can know the answer to. Ask yourselves these questions before committing to stay put or move to another home.
Is Your Desire to Move Location Dependent?
Many people decided to move based on proximity to their job or the school district they are located in. These are problems that may not be solved by staying in your home. Consider your satisfaction with your commute. If you are spending an inordinate amount of time getting to work, you may want to consider asking your employer about alternative work arrangements such as working from home a few days a week or shifting your schedule.
If you aren’t satisfied with the school district you are in, consider charter and private school options. Would it be possible to forego public school and opt for another education option?
Is It a Wise Move Financially?
Moving is a very expensive undertaking, especially if you are footing the bill on your own. Consider whether or not your move will benefit you financially. Will you be making a profit on the sale of your house? Can you get a low interest rate on your new mortgage? Will your new monthly mortgage payment be lower? Will you be buying in an area will home values are appreciating and will allow you to quickly gain equity?
If your decision to move isn’t location-based and doesn’t make financial sense, you may want to consider what you can do to be more satisfied with your house itself. Look for creative ways to make your home feel like it is both functional and endearing.