COVER STORY
Big move delivers on spacePlan ahead, agents say, when deciding to trade up
For the Journal-Constitution
Published on: 01/13/08
Feeling the seven-year itch? That's the average number of years first-time home buyers plan to own their home, according to the National Association of Realtors.
The desire to move up to a larger home goes hand in hand with life changes.
Christopher Oquendo/Special |
| An open plan, with 4,700 square feet, allows the Phillips family to easily keep an eye on their 18-month-old son. |
Christopher Oquendo/Special |
| Stephen and Shellie Phillips like the Craftsman style of their home and the mature trees in the development. |
Christopher Oquendo/Special |
| The Daniels' three-sided brick home has a bonus space over the garage that has become a craft room. |
Christopher Oquendo/Special |
| Dawn and Steve Daniel went from 2,600 to 3,600 square feet at West Park in Kennesaw. |
Christopher Oquendo/Special |
| A child and a wish to be near family brought Stephen and Shellie Phillips across town. |
A first child — and plans for more kids — creates a space issue in a starter home. Career success results in the desire for a status symbol home in an exclusive neighborhood. Or now that the kids are gone, it's finally time to have that home on a golf course or at the lake, or with plenty of space for entertaining and visits from the family.
These are among the reasons why more than half of home sellers trade up to a larger home, according to the NAR's 2007 Profile of Home Buyers and Sellers.
One move-up buyer, Shellie Phillips, couldn't be happier with the additional space and features she got in her new home in the Estates at Ellis Wade in Smyrna.
"Sometimes I just look around and think I just can't believe this is our home," said Phillips, who moved in late last year. "It just has all the things that I've wanted for so long. I just haven't been disappointed. I have room to breathe, room to put things."
The buyer's market also has created an opportunity to get into a home that might have been too expensive a year or so ago. But now the price might have dropped, or builder incentives have made it affordable. Buyers could stretch a little and scoop up a better deal, said Drew McGukin, a real estate agent with Keller Williams Peachtree Battle.
"Think about how to use the market to [your] advantage," he said.
A common pitfall among some buyers is overpricing their current home and ending up with two mortgages because the home doesn't sell before the new home closes, said Judy Presley, operating partner of Keller Williams Realty Lanier Partners and Keller Williams Realty Greater Athens.
She advises buyers to accept offers that could be $20,000 less than the asking price to take advantage of a discount equal to or greater than that on the house they would like to buy.
"Even if they can't get as much for their own house, they can make it up on the other end," Presley said.
Still, trading up isn't a step to be taken lightly. Agents give three tips for making the move into a larger home that will satisfy your needs for a while.
•Assess your goals
The biggest mistake McGukin sees buyers make is thinking short-term. Some forget to factor in the need for a home office or another bedroom if the family is going to grow. He recommends looking at least five years down the road to consider whether that includes another child, parents moving in, working from home or other needs.
• Get finances in order
Presley recommends pulling free annual credit reports from the three consumer credit reporting companies — Equifax, Experian and TransUnion (visit www.annual
creditreport.com for more information). If done far enough in advance of applying for a new mortgage, errors can be removed and corrected in time for a home purchase. That could improve a credit score. "Every point makes a difference," Presley said. "The higher your score, the more options you have. The better rate you'll get, the better terms you'll get."
•Determine budget
Get in touch with a loan officer to determine your budget. Factors include the amount of equity in your current home, savings and debt. Most people moving up purchase a home that costs 1 1/2 times their current home, Presley said. So those in a $200,000 home could move up to one in the $300,000-$350,000 range. Buyers that McGukin has worked with typically increase their mortgage payments by $1,000-$1,500 a month. If there's a concern about the additional expense, he recommends locking into a fixed rate mortgage instead of an adjustable rate mortgage.
NEW FEATURES, SAME TOWN
Residents: Steve and Dawn Daniel
Location: Moved from the east side to the west side of Kennesaw, into West Park, a Sharp Residential community of 84 homes from the high $500,000s-$700,000s. Dawn, 52, who works in the manufacturing industry, wanted to keep her convenient commute to the Cumberland Mall area.
The event: After their daughter moved out in the spring, the couple saw an advertisement for West Park. One day while driving around, they stopped by the neighborhood. "The minute we walked in the model, it was like, 'Oh my gosh, this is where we belong,'" Dawn Daniel said. "We've lived in several homes. That's the first home that I really had a feeling like that."
The size: Their new home has about 3,600 square feet, with an additional 1,500 in the basement. Their previous home had about 2,600 square feet.
The bonuses: An acre lot (up from approximately two-thirds of an acre in their former neighborhood) and a three-car garage, which now holds their two sport utility vehicles. "That's more of a man thing," Dawn said. "Some day my husband would like to have a sports car, so he would need a place for that." Above the garage, a bonus room is a perfect spot to accommodate Dawn's passion for quilting. "So that's what sold me on this model, is because I just envisioned what I could do with this room," said Dawn, who turned it into a craft room, with details including a workstation custom built by Closets and More. "Just having the extra room, it just makes it more manageable."
Other favorite details: An eat-in kitchen with GE stainless-steel appliances, including double ovens. One is a convection oven, which Dawn didn't have in previous homes. She also loves the hardwood floors and the fact that the home is three-sided brick.
Now that it's done: "People think we're crazy. It's like, 'Why did you buy up?' It's like, 'Because we wanted to,' " Dawn said.
ROOM TO GROW, DIFFERENT LOCATION
Residents: Stephen and Shellie Phillips and their 18-month-old son, Stephen Michael
Location: Moved from Duluth, where they lived for 41/2 years, to Smyrna. The Estates at Ellis Wade, which is priced from $549,900-$699,900, will have 52 homes when complete.
The event: The birth of their son created a need for more space. The family also wanted to be closer to Shellie's parents in Vinings and Stephen's job at Northwest Exterminating in Smyrna, which his family owns. His commute was cut from an hour and 40 minutes to 10 minutes.
The size: Their new home has about 4,700 square feet, compared with about 2,800 in their previous home. It has four bedrooms, three full and two half baths and a finished basement.
The bonuses: Shellie liked having a playroom in the basement and an open floor plan upstairs that allows her to be in the kitchen while Stephen Michael is playing in the den. Another plus was a Jack and Jill bathroom upstairs, with separate vanities and toilets, giving room for the family to expand. "There's room to grow in this house," she said.
Other favorite details: The Craftsman style outside and interior details such as custom cabinets in the den and woodwork along the stairway. "They put a lot of attention to detail," said Stephen, 31. He also appreciates the setting. "Most new developments, they clear everything out, and there are really no trees. Basically we're surrounded by huge trees," he said. "We're in a brand new house, but yet you still kind of have the old feel to it when you're outside."
Now that it's done: "I don't want to move again," said Shellie, 32.
REPEAT BUYER TRENDS
• 79 percent: Percentage of repeat buyers who purchased a detached single-family home (compared with 67 percent of first-time buyers)
• 42 percent: Percentage of repeat buyers who sold and purchased a home in the suburbs
• 2,015 square feet: Median size of homes purchased by repeat buyers
• 1,510 square feet: Median size of homes purchased by first-time buyers
• 46: Average age of a repeat buyer (half are between 35 and 54 years old)
• $85,700: Median 2006 income of repeat buyers
• $58,600: Median 2006 income of first-time buyers
WHY REPEAT BUYERS BUY A HOME:
• Desire for a larger home (17 percent)
• Job relocation/move (17 percent)
• Change in family situation (10 percent)
• Desire to establish a household (9 percent)
• Desire to be closer to family/friends (7 percent)
Source: National Association of Realtors' 2007 Profile of Home Buyers and Sellers
ON TELEVISION
•"Moving Up": This TLC series, hosted by interior designer Doug Wilson, follows three couples as they move into — and often redo — their new homes, then invites the sellers back in. New episodes air at 8 p.m. Saturdays.
•"I Want That!": For an idea of design trends and gadgets possibly worth considering in your next move, check out this HGTV series, which also has branched into shows focused on kitchens, bathrooms and tech toys. Shows include "I Want That! Kitchens!" at 1:30 p.m. today.
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