Dreaming of a New Home for the Holidays

With our bellies full from the Thanksgiving cornucopia, Hanukkah upon us, and Christmas right around the corner, this is typically a time of year where we take a moment to reflect and give thanks. Yet, it can also be a time when relatives visit and we realize we don’t necessarily have the home space we desire.  Perhaps a guest bedroom and larger great room for entertaining make it to the wish list. Or, maybe recognizing that a designated office space is in order since the dining room table is in use and four walls with a door would make concentrating for work infinitely easier.

Regardless of the scenario, the holidays can be the impetus to consider a new home for the holidays.  In this era of countless jobs going virtual, our needs have irreversibly changed. Also, now more than ever, we are witnessing multi-generations coming together under one roof, whether a college graduate returns home because of high rents or a grandparent moves in for health reasons. The bottom line is that lifestyles have shifted, which often necessitates more space.

Contributing factors with families and professionals sitting on the fence and not taking action to move up into a larger home are sensationalized reports about housing prices and lack of inventory. This can instill fear and render homeowners feeling hopeless. However, there are endless possibilities when the right resources are brought to the forefront and made accessible. One such tool is a bridge loan that will provide funds necessary to purchase a new home with cash; thus, buying time to sell the existing home afterward.

The benefits of this particular loan are threefold. First, it allows homebuyers to make a cash, which carries a lot of weight in this competitive market and likely will be most attractive to the seller. Second, it provides the ability to move once and not have to fret about timing, a leaseback or double move into a temporary dwelling after the traditional sale of your existing home while shopping for the new home. Third, it offers the convenience of listing your old home without living through the showings, and minimizes disruptions during this exciting and monumental transition.

Another viable option available is a result of our incredible market. Those who peruse Zillow to window shop are often amazed by the current value of their home. Homeowner equity throughout Flagstaff is extraordinary and can be utilized in several different ways. A cash-out refinance can provide a homeowner with liquidity to put toward a new home. These down payment monies can facilitate the purchase of a bigger home or be used for an investment property to rent or Airbnb. In the former scenario, you can keep the smaller home to rent or sell it and transfer that equity into your new home.

Here is a simplified example based on average home prices in Flagstaff. A homeowner might have purchased a home three years ago for $500,000. Today, the home will sell for $750,000. The difference represents approximately $250,000 in equity. A larger dream home might cost $850,000. The $250,000 can be utilized toward the new home, thus making the mortgaged amount only $100,000 more than the smaller home. (Purchase price of new home at $850,000 less down payment of $250,000 equals $600,000.)

Make sure to speak with a professional to learn more about the particulars of these programs. If you would like to hear from a panel of experts to better understand your buying power, gain knowledge about new neighborhoods on the horizon, ask a CPA about tax consequences and find out why a new loan payment will be similar to an existing one, there is a free three-part Buyer and Seller Educational Series forthcoming. This is an opportunity to ask questions and leave with tools and resources available now.  Perhaps a new home for the holidays isn’t just a dream.

The following topics will be discussed for the three-part Buyer and Seller Educational Series:

Move-up Buyers | 5:30 p.m., Thursday, Jan. 27

First-Time Homebuyers | 5:30 p.m., Thursday, Feb. 17

Investors & Airbnb | 5:30 p.m., Thursday, March 3

To reserve your seat at the Buyer and Seller Educational Series, call 928-396-5851, text 602-524-5674 or email Lori@AZdreamlifestyle.com. The series will be conducted at Clear Title Agency of Flagstaff and Academy Mortgage, located 2076 S. Woodlands Village Blvd., Flagstaff, Arizona, 86001.

RSVP today to reserve your seat!  Call 928-396-5851 or text 602-524-5674 or email Lori@AZdreamlifestyle.com. FBN

By Lori Anna Harrison

Lori Anna Harrison is a Flagstaff native and 17-year real estate veteran commencing post graduate school with Shea Homes.  Lori is a full-time realtor with Zion Realty, LLC. Call her today at 928-396-5851 or text 602-5245674, email lori@AZdreamlifestyle.com and visit AZdreamlifestyle.com.